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.
What happened
Indigo Paints · Indian paint makers including Indigo, Berger and Grasim have pushed through back-to-back price hikes (~12%) to offset crude-linked input
Key facts
- 12% price hike
- 50%-100% raw material rise
- 20%-23% inflation
Why this matters
Watch for distressed regional or mid-tier paint assets if elasticity breaks against the 12% hikes, as under-recovery on 50-100% raw material inflation could surface bolt-on targets seeking scale to survive the input cycle.