Berger Paints Sees H2 Gross Margin Expansion on Softer Raw Material Prices.

Berger Paints India Ltd, the country’s second-largest paint manufacturer by market share, expects its gross margins to expand by 100–150 basis points in the second half of the current fiscal year, driven by a decline in raw material prices.

“There is an advantage coming up which we see about one and one-and-a-half per cent in terms of margin expansion, which is likely to happen on account of raw material prices cooling off,” said Abhijit Roy, Managing Director and CEO of Berger Paints, during a post-earnings investor conference call.

In the second quarter of FY25, the company’s standalone gross margin stood at 39.6%, down 80 basis points from 40.4% in the same period last year. The expected softening of input costs, particularly crude-linked materials, is likely to aid profitability in the coming quarters.