Asian Paints Share Price Rises on GST Boost; Berger Paints, Kansai Nerolac See Gains Despite Q1 Profit Dip
- 18th August 2025
- 01:00:00 PM
- 4 min read
Mumbai, August 18 – Asian Paints share price gained over 2% on Monday after the government announced sweeping GST reforms, sparking a rally across the paints sector. Shares of Berger Paints, Kansai Nerolac, and Akzo Nobel India also moved higher, even as the June quarter (Q1 FY26) results showed muted earnings performance across paint makers.
Paint Stocks Rally After GST Announcement
As on 11:58 am today,
- Asian Paints share price rose 2.27% to ₹2,586.10 on NSE.
- Berger Paints shares gained 1.5% to ₹541.80.
- Kansai Nerolac stock advanced 0.82% to ₹237.37.
- Akzo Nobel India added 0.67% to ₹3,444.
The positive momentum came after Prime Minister Narendra Modi announced GST rate reforms that are expected to bring down consumer costs and boost discretionary spending in categories such as paints and coatings.
Asian Paints Q1 Results:
Asian Paints Q1 FY26 results showed a 0.3% YoY decline in consolidated revenue to ₹89,386 crore. Decorative volumes grew 3.9%, while the industrial coatings segment rose 8.8%. However, margins were weak – EBITDA fell 4.1% to ₹16,250 crore and net profit dropped 6.1% YoY to ₹11,000 crore.
CEO Amit Syngle noted that demand in April and May was healthy, but the early onset of monsoon impacted June sales. He added that urban markets showed early signs of recovery, though competitive intensity remains high with new entrants like JSW Paints gaining ground.
Prabhudas Lilladher (PL Capital) retains a Reduce rating on Asian Paints with a target price of ₹2,248, citing limited margin levers and rising competition
Also Read: Is Asian Paints Done Painting the Town Red? Ahead of Q1 Results
Berger Paints Q1 Results:
Berger Paints Q1 earnings showed an 11% YoY fall in net profit to ₹315 crore, while revenue increased 3.55% to ₹3,200.7 crore. Decorative paints delivered mid-single-digit growth but were disrupted by early rains.
CEO Abhijit Roy said, “The monsoon arrived earlier than expected, leading to postponement of purchases in several markets.”
Kansai Nerolac Q1 Results:
Kansai Nerolac Paints Q1 results reflected resilience in industrial paints. Revenue grew 1.8% YoY to ₹2,087 crore, with industrial volumes rising in high single digits. However, EBITDA fell 6.7% to ₹3,120 crore and PAT declined 4.3% to ₹2,309 crore.
The company expects Q2 demand improvement led by early Diwali and a stable monsoon. Management maintained FY26 EBITDA margin guidance at 13–14%.
We maintain an Accumulate rating on Kansai Nerolac with a target price of ₹277, supported by its strong industrial exposure and new product launches
Akzo Nobel India:
Akzo Nobel India Q1 FY26 net profit dropped 20.6% YoY to ₹91 crore, while revenue slipped 4% amid weak demand and rising competition.
The stock remains in focus as JSW Paints recently announced a ₹9,000 crore acquisition of a 74.76% stake in Akzo Nobel India. This move positions JSW as a significant challenger to market leaders Asian Paints and Berger Paints in the ₹75,000 crore Indian paint industry.
Also Read- PL Capital on Paint Stocks: Demand Recovers, Competition Bites
Financial Snapshot
| Company | Revenue (₹ Cr) |
YoY Growth | EBITDA (₹ Cr) |
EBITDA Margin | Net Profit (₹ Cr) |
YoY Growth |
| Asian Paints | 89,386 | -0.30% | 16,250 | 18.20% | 11,000 | -6.10% |
| Berger Paints | 3,200.70 | 3.60% | NA | NA | 315 | -11% |
| Kansai Nerolac | 2,087 | 1.80% | 3,120 | 14.90% | 2,309 | -4.30% |
| Akzo Nobel India | 995.1 | -4% | NA | NA | 91 | -20.60% |
Paint Sector Outlook: GST Cuts, Early Diwali, Competition Rising
The Indian paints sector faces short-term challenges from monsoon-led demand disruptions, margin pressures due to anti-dumping duty (ADD) on TiO2, and pricing competition. However, three growth drivers are expected to aid recovery in FY26:
- GST reforms lowering consumer costs and supporting demand.
- Early Diwali in October, likely to boost festive sales in Q2.
- Industrial paints demand, supported by infrastructure and auto coatings.
PL Capital
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
