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Time of India
13 hours ago
- Business
- Time of India
Paint sector slowdown: Early monsoon and price wars hit June quarter earnings, companies eye festive revival
The June quarter turned out to be a muted one for India's leading paint makers, as the early arrival of the monsoon and aggressive pricing by new entrants ate into their growth. Asian Paints, Berger Paints, Kansai Nerolac Paints and Akzo Nobel India all reported subdued numbers, though sequential improvement was visible in urban markets and realisations improved due to price hikes. Early monsoon dampens demand Asian Paints Managing Director and CEO Amit Syngle said the business saw a sharp impact from the unexpected onset of rains. 'In April and May, the demand was better, but it was strongly impacted by the early monsoon. However, I think the silver lining was that we saw some shoots of demand coming up in urban areas, which were down, and we hope that it continues as we go ahead,' Syngle said, quoted PTI. The company reported a 1.19 per cent dip in standalone sales revenue to Rs 7,848.83 crore. Its volume growth stood at 3.9 per cent year-on-year, but value fell 1.2 per cent. Berger Paints CEO Abhijit Roy too pointed to the 'heavier than expected monsoon towards the end of May and June,' which he said moderated growth. The company posted an 11 per cent fall in consolidated net profit at Rs 315 crore, while revenue from operations rose 3.55 per cent to Rs 3,200.76 crore. Competition squeezes margins Alongside the weather, intensifying market rivalry weighed heavily. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Could This NEW Collagen Blend Finally Reduce Your Cellulite? Vitauthority Learn More Undo 'The overall competition in the market is intense, with a lot of new competition coming in,' said Syngle, pointing to aggressive new players challenging incumbents in the decorative paints segment. Kansai Nerolac's Managing Director Pravin Chaudhari also highlighted the pressure. 'Overall, monsoon in many places has caused some disturbances that have led to temporary stoppages, especially in projects as well as some part of retail,' he said. The company reported a 4.12 per cent drop in consolidated net profit to Rs 215.6 crore, while revenue rose 1.35 per cent to Rs 2,162.03 crore. Akzo Nobel India, which reported a 20.6 per cent decline in net profit to Rs 91 crore, described the quarter as 'stressed' due to muted consumer sentiment and competitive intensity. CMD Rajiv Rajgopal said revenue growth across top players remained 'pretty flattish.' Paint makers are betting on the festive season to drive a turnaround. With Diwali coming earlier than last year, companies expect demand in August and September to improve. 'Construction activity based on whatever we saw in the month of June, we believe that Q2 should be better as far as decorative is concerned,' Chaudhari added. The Rs 75,000-crore Indian paint industry remains dominated by Asian Paints, with Berger, Kansai Nerolac, Akzo Nobel, Indigo Paints, Shalimar Paints and Nippon Paints also vying for market share. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
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Business Standard
a day ago
- Business
- Business Standard
Early monsoon, intense competition dampen paint companies' growth in Q1
The early arrival of the monsoon this year and intense competition from new market entrants with aggressive pricing adversely impacted the June quarter earnings of leading paint makers. However, the top four listed paint makers, including Asian Paints, Berger Paints, Kansai Nerolac Paints and Akzo Nobel India, reported some sequential improvement, especially from the urban market, along with improvement in sales realisation due to price rise. Moreover, as Diwali is slightly ahead compared to last year, paint manufacturers expect a better performance in August and September. Asian Paints, the largest company in the sector, said the early monsoon was a bit of a dampener, which affected some of its business. "In April and May, the demand was better, but it was strongly impacted by the early monsoon. However, I think the silver lining was that we saw some shoots of demand coming up in urban areas, which were down, and we hope that it continues as we go ahead," Asian Paints Managing Director and CEO Amit Syngle said in the earnings conference call. While terming the overall competition in the market as "intense", Syngle said, "a lot of new competition coming in, existing competition also being strong". In the decor business, the segment witnessed intense competition due to the arrival of new players, he said, adding that Asian Paints' volume growth has been decent. "We have got about 3.9 per cent volume growth over the Q1 of last year, which was also at about 7.1 per cent volume growth. When we look at the value number, the value is just about -1.2 per cent. So, just falling short of possibly hitting the base," he added. On a standalone basis, which mainly includes domestic numbers, Asian Paints' revenue from sales slipped 1.19 per cent to Rs 7,848.83 crore in the June quarter. Berger Paints recorded a 'mid-single digit' volume growth in the June quarter. The "growth was moderated by heavier than expected monsoon towards the end of May and June," said its Managing Director and CEO Abhijit Roy in the earnings call. "So, it started a bit early this time by the end of May, which was a surprise. Across many markets, it was quite intense in some parts of the a result of that, in paint, it (purchase) gets postponed." Berger Paints reported an 11 per cent decline in its consolidated net profit to Rs 315 crore for the June Quarter of FY26. However, its revenue from operations inched up 3.55 per cent to Rs 3,200.76 crore. "The decorative segment delivered mid single-digit volume growth. The volume value gap narrowed, driven by improved mix and waning impact of price, and prior price corrections," Roy said. Similarly, Kansai Nerolac also pointed out that an early onset of monsoon impacted its May sales. "Overall, monsoon in many places has caused some disturbances that have led to this temporary, I would say, stoppages, especially in the area of projects as well as some part of retail," its Managing Director Pravin Chaudhari said in the earnings conference call. The project and institutional business has done well, though "not as per our expectation because of this monsoon, which impacted the segment, and it has grown mid-single digit," he noted. However, exterior texture and waterproofing have seen good growth in the June quarter, he added. Chaudhari said rural demand is quite stable as of now, and there is a slight uptick in urban demand. However, he is still not sure whether that will continue the momentum. On the outlook, he said, "Construction activity based on whatever we saw in the month of June, we believe that Q2 should be better as far as decorative is concerned. It is also due to our Diwali being slightly ahead of time than last year. I think we will have a season. August and be better than what it was last year". Kansai Nerolac Paints reported a 4.12 per cent fall in its consolidated net profit to Rs 215.6 crore for the June quarter, while its revenue from operations increased 1.35 per cent to Rs 2,162.03 crore. Similarly, Akzo Nobel India, in which JSW Paints is acquiring a 74 per cent stake, reported a 20.6 per cent drop in consolidated net profit to Rs 91 crore in the June quarter. Its revenue from operations slipped 4 per cent to Rs 995.1 crore from Rs 1,036.3 crore in the year-ago period. The company had a "stressed quarter" due to the muted consumer sentiment and competitive intensity. Replying to a query over the sectoral competition during the earnings Webinar, Akzo Nobel India CMD Rajiv Rajgopal said the top four listed players' revenue growth is "pretty flattish". "If you take the last three, four quarters, with 52 per cent of the industry having a decline, right? So, obviously, it was a decline. But, I think things are that is what you heard from all my peers, from all my counterparts, and that is fairly indicative," said Rajgopal. "The biggest battle we were having was with the newcomer, who obviously put in a lot of volume and revenue into the market." The Indian paint industry, which is estimated to be around Rs 75,000 crore, is led by Asian Paints. Besides Berger, Kansai Nerolac, Akzo Nobel India (Dulux), Indigo Paints, Shalimar Paints, and Nippon Paints are other major brands. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Mint
a day ago
- Business
- Mint
Early monsoon, intense competition dampen paint companies growth in Jun qtr
New Delhi, Aug 17 (PTI) The early arrival of the monsoon this year and intense competition from new market entrants with aggressive pricing adversely impacted the June quarter earnings of leading paint makers. However, the top four listed paint makers, including Asian Paints, Berger Paints, Kansai Nerolac Paints and Akzo Nobel India, reported some sequential improvement, especially from the urban market, along with improvement in sales realisation due to price rise. Moreover, as Diwali is slightly ahead compared to last year, paint manufacturers expect a better performance in August and September. Asian Paints, the largest company in the sector, said the early monsoon was a bit of a dampener, which affected some of its business. "In April and May, the demand was better, but it was strongly impacted by the early monsoon. However, I think the silver lining was that we saw some shoots of demand coming up in urban areas, which were down, and we hope that it continues as we go ahead," Asian Paints Managing Director and CEO Amit Syngle said in the earnings conference call. While terming the overall competition in the market as "intense", Syngle said, "a lot of new competition coming in, existing competition also being strong". In the decor business, the segment witnessed intense competition due to the arrival of new players, he said, adding that Asian Paints' volume growth has been decent. "We have got about 3.9 per cent volume growth over the Q1 of last year, which was also at about 7.1 per cent volume growth. When we look at the value number, the value is just about -1.2 per cent. So, just falling short of possibly hitting the base," he added. On a standalone basis, which mainly includes domestic numbers, Asian Paints' revenue from sales slipped 1.19 per cent to ₹ 7,848.83 crore in the June quarter. Berger Paints recorded a 'mid-single digit' volume growth in the June quarter. The "growth was moderated by heavier than expected monsoon towards the end of May and June," said its Managing Director and CEO Abhijit Roy in the earnings call. "So, it started a bit early this time by the end of May, which was a surprise. Across many markets, it was quite intense in some parts of the a result of that, in paint, it (purchase) gets postponed." Berger Paints reported an 11 per cent decline in its consolidated net profit to ₹ 315 crore for the June Quarter of FY26. However, its revenue from operations inched up 3.55 per cent to ₹ 3,200.76 crore. "The decorative segment delivered mid single-digit volume growth. The volume value gap narrowed, driven by improved mix and waning impact of price, and prior price corrections," Roy said. Similarly, Kansai Nerolac also pointed out that an early onset of monsoon impacted its May sales. "Overall, monsoon in many places has caused some disturbances that have led to this temporary, I would say, stoppages, especially in the area of projects as well as some part of retail," its Managing Director Pravin Chaudhari said in the earnings conference call. The project and institutional business has done well, though "not as per our expectation because of this monsoon, which impacted the segment, and it has grown mid-single digit," he noted. However, exterior texture and waterproofing have seen good growth in the June quarter, he added. Chaudhari said rural demand is quite stable as of now, and there is a slight uptick in urban demand. However, he is still not sure whether that will continue the momentum. On the outlook, he said, "Construction activity based on whatever we saw in the month of June, we believe that Q2 should be better as far as decorative is concerned. It is also due to our Diwali being slightly ahead of time than last year. I think we will have a season. August and be better than what it was last year". Kansai Nerolac Paints reported a 4.12 per cent fall in its consolidated net profit to ₹ 215.6 crore for the June quarter, while its revenue from operations increased 1.35 per cent to ₹ 2,162.03 crore. Similarly, Akzo Nobel India, in which JSW Paints is acquiring a 74 per cent stake, reported a 20.6 per cent drop in consolidated net profit to ₹ 91 crore in the June quarter. Its revenue from operations slipped 4 per cent to ₹ 995.1 crore from ₹ 1,036.3 crore in the year-ago period. The company had a "stressed quarter" due to the muted consumer sentiment and competitive intensity. Replying to a query over the sectoral competition during the earnings Webinar, Akzo Nobel India CMD Rajiv Rajgopal said the top four listed players' revenue growth is "pretty flattish". "If you take the last three, four quarters, with 52 per cent of the industry having a decline, right? So, obviously, it was a decline. But, I think things are that is what you heard from all my peers, from all my counterparts, and that is fairly indicative," said Rajgopal. "The biggest battle we were having was with the newcomer, who obviously put in a lot of volume and revenue into the market." The Indian paint industry, which is estimated to be around ₹ 75,000 crore, is led by Asian Paints. Besides Berger, Kansai Nerolac, Akzo Nobel India (Dulux), Indigo Paints, Shalimar Paints, and Nippon Paints are other major brands.
News18
a day ago
- Business
- News18
Early monsoon, intense competition dampen paint companies growth in Jun qtr
New Delhi, Aug 17 (PTI) The early arrival of the monsoon this year and intense competition from new market entrants with aggressive pricing adversely impacted the June quarter earnings of leading paint makers. However, the top four listed paint makers, including Asian Paints, Berger Paints, Kansai Nerolac Paints and Akzo Nobel India, reported some sequential improvement, especially from the urban market, along with improvement in sales realisation due to price rise. Moreover, as Diwali is slightly ahead compared to last year, paint manufacturers expect a better performance in August and September. Asian Paints, the largest company in the sector, said the early monsoon was a bit of a dampener, which affected some of its business. 'In April and May, the demand was better, but it was strongly impacted by the early monsoon. However, I think the silver lining was that we saw some shoots of demand coming up in urban areas, which were down, and we hope that it continues as we go ahead," Asian Paints Managing Director and CEO Amit Syngle said in the earnings conference call. While terming the overall competition in the market as 'intense", Syngle said, 'a lot of new competition coming in, existing competition also being strong". In the decor business, the segment witnessed intense competition due to the arrival of new players, he said, adding that Asian Paints' volume growth has been decent. 'We have got about 3.9 per cent volume growth over the Q1 of last year, which was also at about 7.1 per cent volume growth. When we look at the value number, the value is just about -1.2 per cent. So, just falling short of possibly hitting the base," he added. On a standalone basis, which mainly includes domestic numbers, Asian Paints' revenue from sales slipped 1.19 per cent to Rs 7,848.83 crore in the June quarter. Berger Paints recorded a 'mid-single digit' volume growth in the June quarter. The 'growth was moderated by heavier than expected monsoon towards the end of May and June," said its Managing Director and CEO Abhijit Roy in the earnings call. 'So, it started a bit early this time by the end of May, which was a surprise. Across many markets, it was quite intense in some parts of the country…as a result of that, in paint, it (purchase) gets postponed." Berger Paints reported an 11 per cent decline in its consolidated net profit to Rs 315 crore for the June Quarter of FY26. However, its revenue from operations inched up 3.55 per cent to Rs 3,200.76 crore. 'The decorative segment delivered mid single-digit volume growth. The volume value gap narrowed, driven by improved mix and waning impact of price, and prior price corrections," Roy said. Similarly, Kansai Nerolac also pointed out that an early onset of monsoon impacted its May sales. 'Overall, monsoon in many places has caused some disturbances that have led to this temporary, I would say, stoppages, especially in the area of projects as well as some part of retail," its Managing Director Pravin Chaudhari said in the earnings conference call. The project and institutional business has done well, though 'not as per our expectation because of this monsoon, which impacted the segment, and it has grown mid-single digit," he noted. However, exterior texture and waterproofing have seen good growth in the June quarter, he added. Chaudhari said rural demand is quite stable as of now, and there is a slight uptick in urban demand. However, he is still not sure whether that will continue the momentum. On the outlook, he said, 'Construction activity based on whatever we saw in the month of June, we believe that Q2 should be better as far as decorative is concerned. It is also due to our Diwali being slightly ahead of time than last year. I think we will have a season. August and September…should be better than what it was last year". Kansai Nerolac Paints reported a 4.12 per cent fall in its consolidated net profit to Rs 215.6 crore for the June quarter, while its revenue from operations increased 1.35 per cent to Rs 2,162.03 crore. Similarly, Akzo Nobel India, in which JSW Paints is acquiring a 74 per cent stake, reported a 20.6 per cent drop in consolidated net profit to Rs 91 crore in the June quarter. Its revenue from operations slipped 4 per cent to Rs 995.1 crore from Rs 1,036.3 crore in the year-ago period. The company had a 'stressed quarter" due to the muted consumer sentiment and competitive intensity. Replying to a query over the sectoral competition during the earnings Webinar, Akzo Nobel India CMD Rajiv Rajgopal said the top four listed players' revenue growth is 'pretty flattish". 'If you take the last three, four quarters, with 52 per cent of the industry having a decline, right? So, obviously, it was a decline. But, I think things are improving…and that is what you heard from all my peers, from all my counterparts, and that is fairly indicative," said Rajgopal. 'The biggest battle we were having was with the newcomer, who obviously put in a lot of volume and revenue into the market." The Indian paint industry, which is estimated to be around Rs 75,000 crore, is led by Asian Paints. Besides Berger, Kansai Nerolac, Akzo Nobel India (Dulux), Indigo Paints, Shalimar Paints, and Nippon Paints are other major brands. PTI KRH KRH BAL BAL (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: August 17, 2025, 11:45 IST News agency-feeds Early monsoon, intense competition dampen paint companies growth in Jun qtr Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. 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Mint
29-07-2025
- Business
- Mint
Asian Paints sees signs of demand revival despite dull start to FY26
Mumbai: Asian Paints Ltd is seeing early signs of a revival in demand even as its revenue and profit fell in the June quarter and continues to face stiff competition. The demand was still better in April and May but got 'very strongly impacted by early monsoons' in June, said Amit Syngle, managing director and chief executive officer at Asian Paints, in the earnings call. '....We have seen a little bit of a similar pattern in July as well, as we have been seeing in Q1 in terms of demand.' The Mumbai-based paintmaker's revenue fell 0.35% over a year earlier to ₹ 8,938.55 crore in the first quarter ended June, according to its exchange filings. Net profit declined 6% to ₹ 1,099.77 crore on-year. The company is targeting single-digit growth in FY26 and expects consistent monsoons to revive rural demand. Chief executive Syngle said they have seen some early signs of revival in overall demand, which is supported by green shoots in urban markets and inflation under control. An early arrival of festivals like Diwali in October could impact the third quarter, shifting retail activity to September, the company said. Asian Paints' management said it is seeing the consumer shift to more affordable products from the luxury segment due to budget constraints. 'When we look at luxury emulsions, we did not do as far as our expectations,' Syngle said. There was a little bit of 'down-trading, which was happening in the market, possibly due to either liquidity' or some other constraints, he said. Syngle also admitted that competition is intensifying. 'I think it's an exciting market. Overall, the competition is fairly intense and it is driving us to look at doing more of innovation, looking at seeing how we can look at really propelling the brand further, looking at increasing the saliency,' he said. '...We would like to look at good growth in the coming times.' Asian Paints, which once held well over 50% market share in decorative and industrial paints for decades, has seen its dominance slip amid rising competition, with its share now hovering closer to the 50% mark. Aditya Birla-backed Birla Opus disrupted the market since its entry in April 2024 and JSW Paints' June acquisition of Dutch paintmaker Akzo Nobel's India business has intensified competition in the paints industry. Asian Paints' decorative paint volumes grew 3.9% year-on-year, while the segment's revenue declined 1.2% due to weak demand stemming from macro-economic uncertainties and early monsoon. The paint maker's international sales increased 8.4% to ₹ .736.1 crore during the quarter. Syngle said the company is 'confident in the long-term growth potential of the home décor and paints industry'. However, its earnings before interest, tax, depreciation and amortization (Ebitda) fell 4% year-on-year to ₹ 1,624.97 crore. 'Asian Paints has fared well in this quarter despite intensifying competition from new entrants,' said Manoj Menon, head of research at ICICI Securities. 'The decline in operating profit is quite normal and an effect of operating deleverage in a flat revenue quarter.' Asian Paints shares closed 1.78% at ₹ 2,401.50 apiece on Tuesday compared with a 0.55% rise in the benchmark BSE Sensex.
