Berger Paints Pakistan Limited has reported a modest improvement in profitability for the nine months ended March 31, 2026, with consolidated profit after tax increasing to Rs240.76 million from Rs232.61 million in the corresponding period last year.

According to the company’s financial results, revenue from contracts with customers rose to Rs6.87 billion during the nine-month period, compared with Rs6.76 billion a year earlier, reflecting growth of around 1.7%. The company’s gross profit, however, showed a stronger improvement, climbing to Rs1.59 billion from Rs1.40 billion, an increase of approximately 13.4%.

Despite the improvement in gross profit, operating expenses remained a key pressure point. Selling and distribution expenses increased to Rs867.42 million from Rs708.92 million, while administrative and general expenses rose to Rs202.38 million from Rs176.68 million. As a result, profit from operations declined to Rs472.40 million from Rs483.78 million in the same period last year.

The company benefited from lower finance costs, which fell to Rs129.68 million from Rs174.88 million. This helped support profitability and offset some of the pressure from higher operating expenses. Profit before taxation increased to Rs397.71 million from Rs369.69 million.

After accounting for taxation, Berger Paints posted consolidated profit after tax of Rs240.76 million, compared with Rs232.61 million in the nine-month period of the previous year. Profit attributable to equity holders of the parent stood at Rs240.84 million, while earnings per share improved to Rs9.81 from Rs9.48.

Quarterly performance remains under pressure

The company’s performance during the third quarter was comparatively softer. Consolidated revenue for the quarter ended March 31, 2026, stood at Rs2.17 billion, up from Rs2.14 billion a year earlier. Gross profit increased to Rs514.62 million from Rs435.51 million, indicating continued improvement at the gross-margin level.

However, higher selling, distribution and administrative expenses weighed on operating profitability. Profit from operations declined to Rs151.98 million during the quarter from Rs143.65 million, while profit before taxation stood at Rs114.35 million compared with Rs117.99 million in the same quarter last year.

Quarterly profit after tax fell to Rs66.51 million from Rs69.67 million, while earnings per share declined to Rs2.71 from Rs2.84.

Balance sheet and cash position

Berger Paints’ consolidated total assets increased to Rs8.24 billion as of March 31, 2026, compared with Rs7.96 billion at June 30, 2025. Total equity stood at Rs3.82 billion, up from Rs3.71 billion at the end of the previous financial year.

The company generated Rs159.08 million in net cash from operating activities during the nine months, down significantly from Rs354.24 million in the corresponding period last year. Investing activities resulted in a net cash outflow of Rs225.09 million, mainly reflecting capital expenditure and investments.

Financing activities generated net cash of Rs36.84 million, supported by an increase in short-term borrowings, partly offset by dividend payments. Cash and cash equivalents stood at Rs267.49 million at March 31, 2026, compared with Rs78.02 million a year earlier.

Overall, Berger Paints Pakistan delivered moderate earnings growth during the first nine months of FY2026, supported by stronger gross profitability and lower finance costs. However, rising operating expenses and weaker quarterly earnings remain areas to watch as the company moves toward the close of the financial year.