Berger Paints Q4 FY25 Results: Revenue Up 7.3%, Net Profit Rises 18%, ₹3.80 Dividend Declared

Berger Paints India has reported a robust financial performance for the fourth quarter of the financial year 2024-25, demonstrating resilience amidst challenging market conditions.

The paints major saw its profitability and revenue grow, supported by strategic focus areas and operational efficiency, according to company announcements.

Positive Financial Metrics Reported

For the quarter ended 31 March 2025, Berger Paints reported a consolidated net profit increase of 18% year-on-year, reaching ₹262 crore. This compares favourably to a net profit of ₹222 crore in the same period last year.

Consolidated revenue from operations also saw healthy growth, advancing 7.3% to ₹2,704 crore, up from ₹2,520 crore in the prior year quarter. 

Operational performance saw a significant uplift with Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) rising 22% to ₹428 crore, against ₹351 crore in Q4 FY24. This resulted in a notable improvement in the operating margin, expanding to 15.8% from 13.9% in Q4 FY24.

This margin expansion is attributed to factors such as better pricing, efficient cost management, and higher sales of premium products.

Volume Growth and Market Dynamics

Despite a challenging environment, Berger Paints recorded a volume growth of 7.4% during the January-March period. The company navigated a challenging market environment in the quarter, marked by subdued urban demand and heightened competition.

Despite these headwinds, it recorded high single-digit volume growth in the decorative segment, along with a sustained gain in decorative market share.

Sequential value performance showed signs of improvement, narrowing the gap between volume and value growth. This was aided by the fading impact of Q4 FY24 price cuts and steady momentum in the premium emulsion category.

Both industrial and decorative segments registered visible progress, viewed as early indicators of a potential demand revival. International operations also contributed positively, with strong topline performance in Poland and Nepal. The Nepal business, in particular, experienced a turnaround, supported by an improved operating environment and a favourable base effect.

Strategic Focus and Future Outlook

Berger Paints continues to focus on strengthening its product portfolio, particularly high-margin premium paints, protective coatings, and waterproofing solutions. Investments in research and development are aimed at introducing innovative products.

The company is also expanding its distribution network in urban and rural markets, leveraging brand recognition. Operational efficiency, including cost optimization in supply chain, raw material sourcing, and manufacturing, remains a key focus.

The ability to manage input cost volatility and maintain a strategic product mix has been crucial for profitability and margin expansion.

Looking ahead, the company remains optimistic about the demand scenario. Expectations are buoyed by favourable budget announcements, government spending on infrastructure and development, and the anticipation of a good monsoon season.

The company also reported a strong financial position with zero gross debt and an improved cash position at the end of the quarter.

In line with its approach to rewarding shareholders, the Board has recommended a final dividend of ₹3.80 (380%) per equity share for the financial year 2024-25. This is subject to shareholder approval at the upcoming Annual General Meeting. The company's shares traded higher following the earnings announcement, reflecting investor response to the results.

The company’s stock closed at ₹551.70, with an increase of 1.62%.

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