Paints industry

10 companies · ₹3.1 L cr · 6 with AI deep dives · Q1FY27 report

Volume recovery broadens but exhausted low-cost inventory and 25% RM inflation set up a Q2 margin test

Turning upmargin troughed at 14.6% and has risen for 7 quarters to 18.2%, on positive revenue growth

Revenue YoY: +14.0%
EBITDA margin: 18.2%; +150bps YoY
Price, 1 year: -16.5%; 0% of names up
P/E vs own 5y: -30.2%; 32.2x now

Exhibit 1The quarter in numbers

constant panel of 7 companies above ₹500 cr

aggregate revenue (₹ cr)EBITDA margin (right axis)

Metric	Jun 26	Mar 26	QoQ	Jun 25	YoY	Peak	vs peak
Revenue	18,102 cr	15,667 cr	+15.5%	15,873 cr	+14.0%	18,102 cr	0.0%
EBITDA margin	18.2%	17.5%	+70bps	16.7%	+150bps	18.2%	0bps

Revenue

Jun 26: 18,102 cr
Mar 26: 15,667 cr
QoQ: +15.5%
Jun 25: 15,873 cr
YoY: +14.0%
Peak: 18,102 cr
vs peak: 0.0%

EBITDA margin

Jun 26: 18.2%
Mar 26: 17.5%
QoQ: +70bps
Jun 25: 16.7%

Sept 26: 0 of 7 reported so far, so it is not in the trend above.

Breadth: 71% of 7 companies grew revenue year on year (was 71% a quarter earlier) and 43% expanded margin (was 71%).

Exhibit 2What it costs

25.73x - 42.15x across the panel today

The median name trades at 32.2x, -30.2% against this industry's own 5-year median of 46.2x, and -63.4% against its own peak of 87.9x.

Exhibit 3Structure

₹3.1 L cr

Asian Paints Ltd is 71% of this industry by market cap. The top 5 are 99% and the top 10 are 100%.

large 2mid 2small 2micro 47 above ₹500 cr

Exhibit 4Screen

P/E below the sub-industry median of 32.2x, 5y ROCE above its median of 20.45%, and at least 2 growth triggers stated on the latest earnings call.

Which names clear this screen is premium

The screen runs on stated growth triggers from the latest earnings calls - the same guidance data the stock screener reserves for premium. Premium names every company in this industry that is cheap against its own median and has the triggers behind it.

Diwali open house: sign in free and Premium is open to you until 8 Nov.See plans →

Exhibit 5Coverage (10 of 10)

Every company here with a deep dive, topped up by market cap. The rest of the industry is in the appendix.

Company	Mcap	P/E	EV/EBITDA	ROCE	Margin	Rev YoY	Read
Asian Paints Ltd	₹2.2 L cr	46.8x	30.7x	26.6%	18.8%	+17.9%	Unlock
Berger Paints India Ltd	₹54,266 cr

Exhibit 6What managements said

from this industry's latest earnings calls · as of 2026-06-30

headwindCrude-linked raw material inflation running well ahead of price increases5 managements

Every major company flagged crude and petrochemical derivative inflation as the primary profit risk. Asian Paints disclosed ~25% material inflation against a ~7% weighted average…

ASIANPAINT (Q1FY27): “The overall weighted average price increase was around 7%. The material inflation was…”

tailwind5 managements headwind4 managements

Exhibit 7Outlook

The outlook and what resolves next quarter

Where these managements said things are heading, and the dated, checkable events that would change it. Free with an account - 3 full reports a quarter.

Create a free account →

AppendixThe other 0 companies

1-0

sort: mcap · composite · name