A Fresh Coat for D-Street: Nuvama Sees Bright Prospects in Asian Paints, Pidilite & Berger

Updated: November 21, 2025 14:44

Brokerage firm Nuvama Institutional Equities has turned upbeat on India’s paint and adhesives sector, spotlighting Asian Paints, Pidilite, and Berger Paints. With volume growth accelerating, raw material costs easing, and seasonal demand from weddings and festivals, analysts expect margins to expand and stocks to regain investor attention.

After a muted spell, India’s paint and adhesives sector is showing signs of revival. According to a new report by Nuvama Institutional Equities, companies like Asian Paints, Pidilite Industries, and Berger Paints are poised for stronger performance in the second half of FY26.

The brokerage highlights a combination of factors driving this momentum: volume growth of 7–8% year-on-year in Q3, expected to rise to double digits in Q4; benign input costs that support margin expansion; and seasonal demand from weddings and festivals. Additionally, higher disposable incomes following GST cuts and pent-up demand after an extended monsoon are expected to boost sales.

Asian Paints has already reported a 43% jump in net profit for Q2, while Pidilite posted an 8.2% increase. Berger Paints, though slightly behind in near-term preference, remains part of the sector’s comeback story. Analysts note that Asian Paints is regaining dominance, with Nuvama preferring it over Berger in the short term.

Key Highlights

Sector Revival: Paints and adhesives industry expected to post 7–8% YoY growth in Q3, moving to double-digit growth in Q4.
Margin Expansion: Raw material deflation and operating leverage likely to lift margins across Asian Paints, Berger, and Pidilite.

Company Performance:

Asian Paints: Q2 net profit surged 43% YoY, revenue up 6.3% to ₹8,531 crore.
Pidilite Industries: Reported 8.2% profit growth in Q2.
Berger Paints: In focus but slightly less favored compared to Asian Paints.

Investor Sentiment: Nuvama maintains BUY ratings on Asian Paints, Pidilite, and Berger, citing strong demand outlook and sector resilience.

Seasonal Boost: Weddings, festivals, and higher disposable incomes expected to drive demand in H2 FY26.

Closing Note

With demand picking up, costs easing, and profits rising, India’s paint sector is once again adding a pop of colour to Dalal Street. For investors, Asian Paints and Pidilite stand out as top picks, while Berger remains part of the broader revival story.

Sources: ZeeBiz, Business Standard, Livemint, Business Today

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