🔴 Key Highlights from Berger Paints’ Q1 FY25-26 Results
📉 Profit Decline: Net profit fell 11% YoY to ₹315 crore (vs. ₹354 crore in Q1 FY24-25).
💰 Revenue Growth: Revenue rose 3.5% YoY to ₹3,200.76 crore (vs. ₹3,091.01 crore).
🌧️ Monsoon Impact: Early & heavy rains in May-June hurt sales volume growth.
🔥 Fire Incident: An exceptional loss of ₹36.81 crore due to a fire at Kolkata warehouse.
📈 Market Share Gains: Despite challenges, Berger improved its market share.
📉 Why Did Berger Paints’ Profits Fall?
1. Monsoon Played Spoilsport
- Unusually heavy rains in May-June slowed down construction and painting activities.
- CEO Abhijit Roy confirmed that demand was weaker due to weather disruptions.
2. Fire at Kolkata Warehouse
- A fire at a Barasat distribution centre caused ₹36.81 crore loss.
- The blaze spread from a neighboring company’s facility, damaging Berger’s inventory.
- Insurance claims are under process, but the loss impacted quarterly profits.
3. Rising Costs
- Total expenses increased 4.11% YoY to ₹2,780.81 crore.
- Raw material costs and operational expenses weighed on margins.
🚀 Silver Lining: Berger Still Gained Market Share!
Despite the profit drop, Berger Paints:
✔ Outperformed industry players in value growth.
✔ Reduced volume-value gap to 3.6% (vs. 7% last fiscal).
✔ Maintained strong brand presence in a competitive market.
📊 Stock Market Reaction
- Berger Paints’ share price rose 0.41% to ₹572 on BSE post-results.
- Investors seem optimistic about recovery in coming quarters.
🔮 What’s Next for Berger Paints?
- Monsoon impact is temporary – demand likely to rebound in H2 FY25-26.
- Insurance claim recovery could boost future profits.
- New product launches and expansion plans may drive growth.
💬 Your Thoughts?
Do you think Berger Paints will bounce back strongly in Q2? Drop your views in the comments!
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