Paint makers chart strong growth path despite raising prices

Major paint manufacturers including Asian Paints, Berger Paints, Kansai Nerolac and JSW Dulux are forecasting robust demand in the fiscal year 2026-27, underpinned by steady expansion across residential, infrastructure and automotive applications. The sector's top players reported healthy sales performance in the June quarter and signalled that price adjustments initiated in the first quarter will continue bolstering revenues in subsequent months.

Berger Paints and JSW Dulux have guided for double-digit growth in the coming fiscal year, while Asian Paints, the sector's market leader, has projected volume growth in the 8-10 per cent range. The price increases reflect manufacturers' efforts to maintain margins against persistent pressure from petroleum-derived raw material costs, which account for a substantial portion of production expenses.

However, paint makers remain cautious about volatile crude oil prices and potential supply chain disruptions stemming from geopolitical tensions. These factors could impact the cost trajectories for key feedstocks in coming quarters. Additionally, the sector continues to grapple with intense competitive pressures across different price segments, which may limit the extent of further price increases.

Despite these headwinds, industry executives expressed confidence that demand momentum will sustain through the festive season and beyond, supported by ongoing infrastructure spending and residential construction activity. The sector's performance will largely hinge on manufacturers' ability to balance price realisation with volume growth while managing raw material volatility.