The country’s leading paint manufacturers expect competitive intensity to remain elevated in the coming months, even as they foresee an improvement in demand and volume growth in the March quarter (Q4), along with sustained margins.
The top management of leading paint companies, such as Asian Paints, Kansai Nerolac, Berger Paints and AkzoNobel India, in their earnings calls, acknowledged the impact on sales in October and a sustained recovery in November and December.
The markers also pointed out the impact of a shorter festive period, along with a prolonged monsoon, on sales in the December quarter.
3 February 2026
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They remain cautiously optimistic that the cyclical recovery, infrastructure push and stabilising consumption patterns will support volume growth even as competitive intensity stays elevated.
Asian Paints MD and CEO Amit Syngle said the market continues to witness strong competitive pressure with no signs of a pullback.
He added that the company is focusing on structural cost reduction rather than relying on raw material deflation or price-led benefits.
Despite a shorter festive season and prolonged monsoon, Asian Paints, the leader in the segment, reported high single-digit volume growth.
Syngle said demand trends across retail, B2B and industrial segments are likely to remain stable in the near term.
He noted that consumption patterns in discretionary categories are evolving, making it necessary to monitor the environment closely.
"We need to wait for another one or two quarters before we really see some things changing in the market," he said, adding that "progressively we could really say that it could be some improvement which can take place, given the cyclicity of the industry and the fact that possibly in the past also we have seen in terms of that demand coming back".
Kansai Nerolac Paints MD Pravin Chaudhari said the company saw a sharp recovery in November and December after a muted October due to a shorter Diwali.
"So, we are seeing that there is a good growth momentum, which is coming back now. And we hope that continues in Q4 as well," he said.
As per the RBI, the construction activity would see a sustained momentum. The demand momentum generated by GST is expected to continue in the fourth quarter, Chaudhari added.
Besides, the automotive segment is expected to maintain growth momentum and expansion in infrastructure, such as railways, roads, airports, and power, which augur well for the paint industry and will drive demand for high-end coatings, the company said.
While replying to competition intensity, Chaudhari said, "Yes, competition intensity still remains pretty intense".
Berger Paints India MD and CEO Abhijit Roy said demand conditions are showing early signs of gradual improvement.
"So, October was negative, November slightly positive, December more positive, January slightly more positive than December, so it is improving month-on-month," he said in the latest earnings call.
The company remains focused on revenue growth and maintaining gross margins within the guided range, he noted.
Roy said competitive intensity is expected to remain elevated with no major shifts in market share trends.
He added that continued investments in branding, distribution and urban initiatives remain crucial to capture potential demand improvement as and when it keeps happening.
Expressing similar views, AkzoNobel India CMD Rajiv Rajgopal said, "I do expect the competitive intensity to continue for a couple of quarters".
"I think in premium, I don't think that the order is really reversed, while people have tried," he said.
AkzoNobel saw a muted October, but bounced back strongly in November, reporting 8 per cent decorative volume growth on a like-to-like basis.
Rajagopal expects Q4 to be 'a pretty strong quarter', barring any external disruptions.
Asian Paints, Berger Paints, and Kansai Nerolac are the major players in the Indian paint industry, which, according to reports, controls over three-fourths of the market.
In the last 5-6 years, several new players have entered this market, including Pidilite with Haisha Paints, Grasim with its Birla Opus, and JSW Paints.
The Indian paint industry is led by Asian Paints, a market leader. Besides Berger, Kansai Nerolac, Akzo Nobel India (Dulux), Indigo Paints, Shalimar Paints, and Nippon Paints are other brands.
