Berger Paints (I) Limited — Q1FY27 earnings call summary

Filed 05 August 2026 · Company audio recording

GST input tax credit on new plant capex delaying margin benefits until FY26.
Industry growth expected around 12-14%, with Berger targeting ~14% growth driven by distribution expansion, construction chemicals, and industrial coatings.
Competitive intensity may cause slight volume/margin pressure but manageable; worst-case growth impact ~4% reduction.
Margins currently at ~17-18%, expected to moderate slightly to 16-17% due to pricing pressures from new entrants.
Sandila plant utilization at ~37-38%, expected to rise to 50-60% next year, lowering cost per litre and freight expenses.
Margin guidance stable around 15-17%, with no expectation of falling below 15% despite competitive pressures.
Operating leverage to improve with higher utilization at new Sandila plant; tax benefits to materialize from FY26 onwards.
Construction chemicals segment (~₹1,300 cr) growing rapidly, expected to accelerate further with real estate cycle upswing.