Asian Paints, Berger Paints, Kansai Nerolac Shares Fall Up to 25% in 2026 as Diwali Demand Comes Into Focus

Asian Paints, Berger Paints and Kansai Nerolac shares have fallen sharply in 2026, with Kansai Nerolac down 25.01% year-to-date. Asian Paints has declined 15.5%, while Berger Paints is down 14.34%. The paint stocks are now in focus ahead of Diwali as dealers begin stocking products for the festive season.

Demand, however, has remained weak through much of the September quarter. Dealers were holding 2.5–3 months of inventory at the end of the quarter, compared with the usual 1.5–2 months. Purchases slowed in August but picked up in September as dealers started preparing for the festive season.

The September improvement comes as paint companies enter the key Diwali period, but higher raw material costs remain a concern. Brent crude rose from around $70 a barrel in early July to nearly $97 by the end of September. Since several paint raw materials are crude-linked, the rise in oil prices has added pressure on costs.

Asian Paints, Berger Paints And Kansai Nerolac Share Price

The fall in paint stocks this year comes against a backdrop of slower demand and heavy competition. Kansai Nerolac has recorded the steepest decline among the three, falling 25.01%, followed by Asian Paints at 15.5% and Berger Paints at 14.34%.

For the September quarter, Berger Paints is estimated to report 12.8% revenue growth, while Kansai Nerolac's revenue could rise 12%. Asian Paints' decorative business revenue is expected to grow 10%, with volume growth of around 5%.

The expected growth comes even as dealers remain cautious on inventory. The pickup in September buying is therefore important for the festive season, particularly after weaker purchases in August. The level of dealer stocking will also determine how quickly companies can clear existing inventory.

Asian Paints, Berger Paints Face Competition And Crude Pressure

Competition has also become stronger in the economy segment. Asian Paints' Neo Bharat range is priced below regular distemper at the dealer level, while Birla Opus has reduced dealer schemes by 5–6% over the past two months. Berger Paints, meanwhile, has taken price hikes of around 8%.

Paint companies have also raised prices as crude-linked input costs rise. For Q2 FY27, Asian Paints' EBITDA margin is estimated to fall 117 basis points year-on-year, while Kansai Nerolac's margin could decline 49 basis points. Berger Paints is expected to see a 50-basis-point improvement.

Dealer buying improved in September ahead of Diwali after a weak August. The festive season will now be important for demand, while higher crude prices, dealer inventory and competition remain key factors for the paint stocks.

Also Read - ITC Share Price Today: Stock Jumps 3% On Q2FY27 Margin Hopes As Tobacco Prices Ease Further