Financial Performance Highlights

Quarter 2 FY2027 (July-September 2026):

  • Decorative business volume growth: 6.4% YoY
  • Decorative business value growth: 14.5% YoY
  • Standalone net sales growth: 14.8% YoY
  • PBDIT growth: 5.9% YoY
  • PBDIT margin: 17.1% (vs 18.5% in Q2 FY26)
  • PAT growth: 15% YoY
  • Gross margin declined due to inflation despite 7% price increase in Q1 and 5% in Q2

Half Year FY2027 (April-September 2026):

  • Volume growth: 8% YoY
  • Value growth: ~16% YoY
  • PBDIT margin: 19.6%
  • Consolidated net sales growth: 17% in Q2
  • Consolidated PBDIT margin: 15.6% (down 202 bps)
  • Consolidated PAT growth: 7% in Q2, 24% in H1

Strategic Business Updates

Six Strategic Focus Areas:

1. Brand building through digital and regional integrations

2. Innovation and premiumization

3. Service offerings differentiation

4. Regionalization strategies

5. B2B space expansion

6. Backward integration

Regional Initiatives:

  • Tied up with five Bigg Boss regional formats (Bangla, Malayalam, Telugu, Kannada, Tamil)
  • Launched region-specific shade guides inspired by Bigg Boss home sets
  • Regional packaging initiatives embodying local art and culture

Product Innovation:

  • New product contribution to revenues: 18%
  • Launched Apcolite premium emulsion with polyurethane technology offering world-class washability and warranty
  • Universal corrosion protection product for wood and metal with 4-year warranty
  • Chromacosm color system with 5,000+ shades

Service Offerings:

  • Beautiful Homes Painting Service (world's largest painting service)
  • Total Assure for builders and factories
  • Smart Assure waterproofing service
  • Asset management and protection services for factories

Backward Integration Project

  • Commissioned VAE (Vinyl Acetate Ethylene) facility in September 2026
  • Part of ₹3,250 crore CapEx project
  • GenNext Green Technology with low VOCs
  • Phase 1 completed, expected to ramp to full capacity within a year
  • Potential cost benefit of 300-500 bps on relevant products
  • Differentiated technology not generally available worldwide

Segment Performance

Industrial Business (JVs):

  • PPGAP (Auto OE Refinishes): 34% revenue growth, PBT up 10%, margin at 14.2% (down 309 bps)
  • APPPG (General Industrial): 28% revenue growth, bottom line setback due to delayed price increases

International Business:

  • 30% growth in Q2, 28% growth in H1
  • PBT margin declined to 4.8% due to inflation and staggered price increases
  • Growth across Asia, Africa, and Middle East markets despite geopolitical challenges

Home Improvement Business:

  • Bath and Kitchen: Strong growth
  • Weatherseal: Good growth
  • White Teak: Slower growth

Dividend Declaration

  • Interim dividend of ₹5.75 per share declared
  • Payout ratio of 21.4% in H1 FY27, consistent with previous year

Raw Material Environment

  • Raw material inflation of 3% in Q2 FY27
  • Anti-dumping duty on TiO₂ effective from October 24, 2026
  • Expected impact of 2-3% on costs from anti-dumping duties
  • Company implementing TiO₂ rationalization strategies and differential grade usage

Outlook and Guidance

  • Q3 expected to benefit from longer Diwali in November and wedding season
  • Volume growth expectation of 8-9% for coming periods
  • Gross margin band of 41-43% expected
  • EBITDA margin band of 18-20% maintained for full year
  • November price increase of 3.5% announced to counter inflation and anti-dumping duties
  • Rural markets leading over urban markets, though B2B strong in T1/T2 cities

ESG Initiatives

  • Water neutrality and nature positive framework
  • Hazardous waste management
  • Renewable and biodegradable raw materials usage
  • Beautiful Homes Academy trained lakhs of artisans (painters, carpenters, plumbers)
  • Social initiatives focused on artisan community inclusion

Question and Answer Highlights

Demand and Inventory: Q2 bore full impact of inventory buildup, product mix was seasonal and different from previous quarters.

Margin Outlook: Company confident of maintaining 18-20% EBITDA margin band through price calibration, cost excellence program, and VAE benefits.

Competitive Intensity: Market following similar pricing trajectory, competitive intensity remains high at network level.

VAE Benefits: 300-500 bps benefit expected on relevant products across price ranges, not just premium segments.

Industrial Profitability: Price realization lag in B2B businesses, expected improvement in coming quarters.