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Leading paint manufacturers expect double-digit growth to continue through the festive season

ICICIdirect Research 07 Sep 2026 DISCLAIMER

News: As per media reports, Leading paint manufacturers expect double-digit growth to continue through the festive season, despite fresh price increases to offset input-cost pressures. Competitive intensity across price segments remains high, with no signs of easing. Asian Paints, Berger Paints, Kansai Nerolac and JSW Dulux expect sustained demand from the housing, infrastructure and automotive sectors, while remaining wary of uncertainty in crude-linked raw material costs amid geopolitical tensions, given their reliance on petroleum-derived resources. Berger Paints and JSW Dulux projected double-digit growth, while Asian Paints guided for 8–10% volume growth in FY27. The leading listed paintmakers also reported healthy growth in the June quarter and indicated that price hikes taken during the first quarter will continue to support revenues in the coming months.

View: Demand momentum remains encouraging, with Indigo Paints highlighting that Q1FY27 demand has continued into Q2FY27, while its new Jodhpur plant is expected to support festive demand. Asian Paints expects decorative paints momentum to improve towards the fag end of Q2FY27, led by the festive season, while B2B will continue to support growth; it also expects price-led growth to improve to low double digits from high single digits in Q2FY27. Further, Berger Paints has taken ~13% price increases across Q1FY27 and thereafter. Hence, healthy demand and pricing should support topline growth. Further, healthy outlook on stable pricing for kharif crop should support rural income translating to good discretionary spends in rural areas. However, crude remains elevated at >$90/bbl amid geopolitical instability, keeping crude-derivative-linked raw material costs under pressure. With limited ability to fully pass through cost inflation amid intense competition, elevated crude prices could continue to weigh on margins in the near term.

Impact: Positive

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