Paint Industry Braces for Recovery: Competitive Landscape Shifts

Leading paint manufacturers in India forecast a sales increase in the upcoming quarter, aided by stable material prices, but anticipate strong competition. Firms like Asian Paints and Berger reported mixed results due to prolonged monsoon effects but remain optimistic about demand in the latter half of FY26.

The Indian paint market is on the cusp of recovery, with leading manufacturers expecting a boost in sales and improved margins in the ongoing quarter. This optimism follows a period of aggressive discounting due to new entrants and extended monsoons hampering previous earnings.

Top companies like Asian Paints and Berger Paints have outlined their strategies for a potentially competitive landscape as they project steady growth due to factors such as a good monsoon and GST relief. Price increases of 1.5-2% have been noted following a challenging period exacerbated by weather disruptions.

These players are pinning hopes on improved consumption in the second half of FY26, backed by supportive economic measures. While competition remains stiff, the outlook for the fourth quarter appears promising, with companies strategically investing in product innovation and market-specific promotions.

(With inputs from agencies.)