Berger Paints misses Q3 estimates on long monsoon, shorter festive season

Berger Paints India Ltd, India’s second-largest paint maker, missed analyst forecasts as unusually long monsoon rains in October and a shorter festive season weighed on December quarter earnings.

The Kolkata-based company’s third-quarter net profit attributable to owners fell nearly 8% from the previous quarter. ₹271.16 crore, according to the company’s stock exchange filings. Profit was below expectations ₹285.83 crore estimate by 14 analysts surveyed Bloomberg.

“Extended monsoon rains till October and shortened festive season resulted in a negative October,” Abhijit Roy, managing director and managing director of Berger Paints, said in a statement, adding that after October, they saw a gradual improvement in demand in the rest of the quarter, which helped in good volume growth.

Paint manufacturer’s EBITDA decreased marginally by 0.16% annually ₹470.97 crore. Ebitda stands for earnings before interest, taxes, depreciation, and amortization, which is a measure of operating income. Berger reported a 0.29% year-over-year increase in consolidated revenue. ₹2,983.97 crore.

According to its investor presentation, the company reported 8.5% growth in standalone volume and 0.4% value increase for the December quarter, driven by higher share of economy emulsions, textures and tile adhesives and price adjustments in the economy emulsions segment in 2024-25.

In his statement, Roy said, “Gradual improvement in domestic demand indicators by segments and successive monthly increases in demand are positive forward-looking indicators. The results to be achieved in the coming months are expected to reflect these improvements.”

Berger Paints also agreed to a one-time exceptional fee. ₹53.31 crore in the quarter arising from increased employee liabilities following the implementation of labor laws.