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Paint Makers Expect Healthy FY27 Demand Amid Price Hikes
Paint

Paint Makers Expect Healthy FY27 Demand Amid Price Hikes

India's leading paint manufacturers are entering the festive season expecting housing, infrastructure and automobile demand to sustain double-digit growth through FY27, while cautioning that rising input costs, crude oil volatility and intensifying competition are tempering optimism. Firms have already raised prices to offset higher raw-material costs and signalled further increases to support revenue growth and protect margins in coming quarters.

Asian Paints, Berger Paints, Kansai Nerolac Paints and JSW Dulux indicated that underlying demand remained healthy despite the uncertain cost environment. Asian Paints is targeting volume growth of around eight to ten per cent in FY27 and reported consolidated net profit of Rs 15.59 billion (bn) in the June quarter, with revenue from operations at Rs 105.42 bn for the period.

Berger expects double-digit revenue growth to continue in FY27, citing the full-quarter impact of recent price rises and saying second-quarter volumes should remain broadly in line with the first quarter, albeit possibly marginally lower. The company recorded volume growth of around eight point five per cent in the first quarter and expects this to moderate to about seven point five to eight per cent.

Kansai Nerolac is pursuing further price increases, with decorative paints likely to face an additional price impact of around three per cent in the second quarter and industrial paints becoming three to five per cent costlier after a roughly five per cent rise in the first quarter. Companies noted that crude price spikes, higher petrochemical derivative costs, currency moves and global supply-chain disruption can directly affect manufacturing expenses.

The market has become more crowded over the past five to six years as new entrants and established groups expand manufacturing, distribution and branding, increasing pressure on incumbent players. Firms will therefore need to balance volume growth, pricing actions and market-share defence. For FY27, healthy festive demand and stronger infrastructure activity could keep volumes growing, while volatile crude, a weaker rupee and rising import costs may continue to challenge margins and profitability.

India's leading paint manufacturers are entering the festive season expecting housing, infrastructure and automobile demand to sustain double-digit growth through FY27, while cautioning that rising input costs, crude oil volatility and intensifying competition are tempering optimism. Firms have already raised prices to offset higher raw-material costs and signalled further increases to support revenue growth and protect margins in coming quarters. Asian Paints, Berger Paints, Kansai Nerolac Paints and JSW Dulux indicated that underlying demand remained healthy despite the uncertain cost environment. Asian Paints is targeting volume growth of around eight to ten per cent in FY27 and reported consolidated net profit of Rs 15.59 billion (bn) in the June quarter, with revenue from operations at Rs 105.42 bn for the period. Berger expects double-digit revenue growth to continue in FY27, citing the full-quarter impact of recent price rises and saying second-quarter volumes should remain broadly in line with the first quarter, albeit possibly marginally lower. The company recorded volume growth of around eight point five per cent in the first quarter and expects this to moderate to about seven point five to eight per cent. Kansai Nerolac is pursuing further price increases, with decorative paints likely to face an additional price impact of around three per cent in the second quarter and industrial paints becoming three to five per cent costlier after a roughly five per cent rise in the first quarter. Companies noted that crude price spikes, higher petrochemical derivative costs, currency moves and global supply-chain disruption can directly affect manufacturing expenses. The market has become more crowded over the past five to six years as new entrants and established groups expand manufacturing, distribution and branding, increasing pressure on incumbent players. Firms will therefore need to balance volume growth, pricing actions and market-share defence. For FY27, healthy festive demand and stronger infrastructure activity could keep volumes growing, while volatile crude, a weaker rupee and rising import costs may continue to challenge margins and profitability.

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