Paint companies hope for revival strokes amid demand surge after lull

Paint companies showed early signs of recovery in the first quarter of the financial year 2026 (Q1FY26) despite an early monsoon and intense competition. Management sentiment is positive.

 

The sector posted marginal growth after four quarters of decline. An early festival season (Diwali in mid-October) may drive demand.

 

Paint companies saw single-digit quarter-on-quarter (Q-o-Q) growth in revenues in Q1. New player, Birla Opus (Grasim) claims it had 65 per cent revenue share in premium and luxury products. Raw material prices have softened, especially crude derivatives, but Ebitda margins for most players declined year-on-year (Y-o-Y), due to adverse product mix and