Consumer – Sector Update – Stable demand while competition remains elevated
Published on 19 Mar 2026
We conducted channel checks across paint dealers pan-India, which suggest that 1) demand momentum in 4QFY26 has remained largely flattish QoQ, impacted by slower construction activity in the early part of the quarter, although a mild recovery was witnessed from February supported by seasonal tailwinds, 2) competitive intensity from Birla Opus has seen an uptick with increased dealer-level schemes and incentives, 3) Birla Opus has undertaken selective price hikes of ~2–5% across certain SKUs, and 4) APNT and Berger are focusing on regaining lost market share through an increase in dealer schemes and sustained marketing initiatives.
Although we remain structurally negative on Paints Industry from medium term, but downside in APNT seems limited post 25% correction in stock price in past 2 months. The stock trades at 42xFY28EPS. We upgrade the stock from Reduce to Hold.
