Berger Paints Plans 7–8% Price Hike as Raw Material Costs Rise

Berger Paints is preparing to raise prices by 7% to 8% as higher raw material costs put pressure on margins, even as the company delivered a strong financial performance in the first quarter of the 2026–27 financial year.

The proposed price increase is aimed at offsetting inflation in key inputs and protecting the company’s operating profitability. The move comes at a time when paint manufacturers are facing cost pressures linked to crude oil and other petroleum-derived materials.

Berger Paints reported a consolidated net profit of ₹404.34 crore for the June quarter, compared with ₹314.63 crore in the same period a year earlier. This represents a year-on-year increase of about 28.5%.

Revenue from operations also increased, rising to ₹3,583.75 crore from ₹3,200.76 crore in the year-ago quarter. Consolidated EBITDA stood at ₹607.44 crore, compared with ₹528.4 crore previously. The operating margin improved to 16.95% from 16.51%.

Demand in the decorative paints business remained relatively healthy. Sales volumes in the segment grew 8.4% year-on-year during the quarter, indicating continued consumer demand despite a challenging cost environment.

However, raw material inflation remains a key concern for the company and the wider paints industry. Titanium dioxide, an important input used in paint manufacturing, is among the materials being closely watched. Proposed anti-dumping measures on Chinese titanium dioxide imports could add further pressure to input costs if implemented.

The planned price increase also comes amid intensifying competition in India’s paints market. New capacity and aggressive expansion by companies such as Birla Opus have increased competitive pressure across dealer networks, distribution and marketing.

For paint manufacturers, maintaining a balance between pricing and volume growth has therefore become increasingly important. A sharp increase in prices could affect demand, particularly if consumers delay discretionary painting expenditure. At the same time, failing to pass on higher input costs could weaken margins.

Berger Paints latest move suggests that the company is prioritising margin protection while remaining confident about underlying demand. The upcoming festive period and a potentially longer painting season could provide additional support to volumes.

The effectiveness of the price increase will ultimately depend on how successfully the company passes on higher costs without significantly affecting demand. For the broader paints sector, Berger’s pricing decision could also provide an indication of how other manufacturers respond to continued raw material pressure.