The early onset of the monsoon season, coupled with heightened competition from new entrants offering aggressive pricing, dented the June quarter earnings of India’s leading paint companies. Despite this, the top four listed players — Asian Paints, Berger Paints, Kansai Nerolac Paints, and Akzo Nobel India — managed to show sequential improvement in urban demand and benefited from better sales realisations due to price hikes.
With Diwali falling earlier than last year, companies expect stronger sales momentum in the coming months, particularly in August and September.
Asian Paints
Asian Paints, the country’s largest paint maker, acknowledged that the early rains had hurt demand. “April and May were strong, but the early monsoon hit us hard,” said Managing Director and CEO Amit Syngle. Still, he highlighted signs of recovery in urban consumption. The company posted a standalone revenue decline of 1.19% to ₹7,848.83 crore in Q1 FY26. Its volumes grew 3.9% year-on-year, though value slipped 1.2%.
Berger Paints
Berger Paints also flagged the adverse impact of an early and intense monsoon. “Purchases got postponed as heavy rains arrived sooner than expected,” said MD & CEO Abhijit Roy. The company’s consolidated net profit dropped 11% to ₹315 crore, while revenue inched up 3.55% to ₹3,200.76 crore. Decorative paints delivered mid-single digit volume growth, supported by improved product mix and easing effects of past price cuts.
Kansai Nerolac Paints
Kansai Nerolac noted that the rains disrupted both project and retail demand in May, though certain categories like exterior textures and waterproofing performed well. “Rural demand is stable, and we are seeing some positive momentum in urban markets,” said MD Pravin Chaudhari. The company’s consolidated net profit declined 4.12% to ₹215.6 crore, while revenue rose 1.35% to ₹2,162.03 crore.
Akzo Nobel India
Akzo Nobel India, currently in the process of a majority stake acquisition by JSW Paints, reported a challenging quarter. Its consolidated net profit slipped 20.6% to ₹91 crore, while revenue fell 4% to ₹995.1 crore. CMD Rajiv Rajgopal admitted that muted consumer sentiment and stiff competition weighed on results, though he noted that demand conditions are beginning to improve.
Industry Outlook
Executives across the sector remain hopeful that festive season demand will lift volumes in Q2 FY26, particularly as Diwali arrives earlier this year. The Indian paint industry, estimated at around ₹75,000 crore, remains led by Asian Paints, with Berger, Kansai Nerolac, Akzo Nobel, Indigo Paints, Shalimar Paints, and Nippon Paints also holding significant shares.