Paint majors push 12% price hikes to offset 20-23% input inflation, demand elasticity now in question
Indigo Paints, Berger and Grasim have layered back-to-back price hikes totaling ~12% to absorb a 50-100% surge in crude-linked raw materials. With inflation at 20-23%, hikes still under-recover costs. Q2-Q3 FY26 volume response from consumers and contractors will test pricing power against Asian Paints' competitive stance.
Indian paint makers including Indigo, Berger and Grasim have pushed through back-to-back price hikes (~12%) to offset crude-linked input inflation of 20-23%, but face an uncertain demand elasticity test as higher prices reach consumers and contractors.
Why this matters
Follows Indigo Paints' Q4 profit growth of 1.4% on 9.7% revenue gain and its post-Diwali push for 5% market share. Margin pressure now tests the recovery thesis as hikes lag input inflation.
Retail-brand activity steady at 579 signals over the past 90 days.