India's paint industry is witnessing an improvement in demand across urban and rural markets, raising hopes of healthy volume growth for leading players in FY27 even as they implement price hikes to offset rising input costs amid an intensely competitive market.

Paint manufacturers, which have already undertaken multiple rounds of price hikes amid rising crude-linked raw material costs, remain cautious and are expected to implement calibrated increases to pass on higher input costs to consumers while protecting margins.

Crude oil derivatives account for nearly 30-35 per cent of the paint industry's raw material costs, as key inputs such as solvents, binders and resins are closely linked to global oil prices. The sector remains exposed to geopolitical uncertainties, currency fluctuations and supply-chain disruptions that could further influence costs.

Listed players, such as Asian Paints, Kansai Nerolac, Berger and AkzoNobel India, in their latest earnings calls, said demand trends have strengthened from H2 of FY26, aided by improving consumer sentiment, while a longer festive season and favourable monsoon forecasts are expected to support growth going forward.

Asian Paints Managing Director and CEO Amit Syngle said the company is witnessing encouraging demand trends in both urban and rural markets and expects high single-digit volume growth in the current fiscal.

"We have been seeing some early shoots in April and May and we believe we should be able to achieve at least high single-digit volume growth," Syngle said.

He noted that competitive intensity remains elevated with both established players and new entrants vying for market share. "There is no change in terms of what we see. The intensity of competition still remains." Paint makers have begun taking calibrated price increases to protect margins while attempting to minimise any adverse impact on demand.

Over the price hikes, Syngle said the company has already implemented limited price increases and is evaluating the need for further hikes amid rising input costs.

"So we are continuously evaluating this in terms of the way we want to kind of go. But at the same time, some minimum increases are something which we have already passed in the market, and some more might happen as we kind of go ahead as we look at it," he said while replying to a query.

Kansai Nerolac Paints Managing Director Pravin Chaudhari said inflationary pressures may necessitate further price hikes. He also flagged risks arising from the West Asia crisis, including supply-chain disruptions, higher crude-linked commodity costs and increased import expenses due to rupee depreciation.

While answering a query on price, Chaudhari said, "Now as far as the price increase topic that you are concerned about and inflation or deflation, I mean, if inflation continues, then obviously, our price increases are there, and we might take further price increases." He also said market conditions have been steadily improving since November last year.

"What we are definitely seeing is that since November there has been a constant uptick in the market and that trend is only improving," he said.

Berger Paints Managing Director and CEO Abhijit Roy also mentioned impact from West Asian disturbances and volatility in crude-based derivatives.

Roy said competition in the industry remains intense, while geopolitical uncertainties, crude price volatility, rupee depreciation and supply-side disruptions continue to be key concerns.

The company has undertaken multiple rounds of price hikes beginning March to counter rising raw material costs.

"In quarter one as well there have been three price increases and the fourth one is coming up," Roy said, adding that the cumulative increase in decorative paints has been around 11-12 per cent.

JSW Dulux Joint Managing Director & CEO Rajiv Rajgopal said the industry's cost environment changed significantly from March onwards as raw material prices escalated sharply after remaining benign in the preceding months.

By mid-May, the company would have implemented nearly 9.7 per cent price increases, though the industry may still require an additional 3-4 per cent hike to fully offset cost inflation, he said.

"Demand is coming back, but the two biggest variables for the paint industry remain crude and forex, which need to be monitored very closely," Rajgopal said.

Asian Paints, Berger Paints, and Kansai Nerolac are the major players in the Indian paint industry, which, according to reports, control over three-fourths of the market.

In the last 5-6 years, several new players have entered this market, including Pidilite with Haisha Paints, Grasim with its Birla Opus brand, and JSW Paints, which has increased competitive intensity in the sector.

Published on May 31, 2026