Festive test for new paint firms

Shares of Asian Paints and Berger have lagged over the past year amid the battle for market share and profitability.

- Manyi Agarwal

The December quarter is typically the brightest for Indian paint companies as consumers rush to refresh homes before Diwali. However, the canvas isn’t smooth this year.

Demand for paints has been soft, though September showed some pickup, said an analyst. With Diwali coming in early during the October-December quarter (Q3FY26), the window is shorter in terms of the number of days available for painting. Investors in paint companies can only hope the momentum sustains after Diwali, when broader demand trends will become clearer.

The bigger shift is strategic, with the capacity race largely over. Now it’s about distribution muscle, brand pull, and dealer stickiness. That's where incumbents like Asian Paints Ltd and Berger Paints India Ltd have decades of goodwill and deep networks to defend turf.