Paint companies are gearing up for another round of price hikes over elevated crude oil prices and a rise in other input and logistics costs. The upcoming surge follows a price appreciation of 6-10% since the West Asia war which triggered a sharp rise in global oil prices.
As of the latest, India’s largest paint company -- Asian Paints -- will be increasing prices of its products in the range of 3-5% from May 5, 2026. Brokerage firm Nomura noted that this hike takes the cumulative price increase to high single digits to double digits, following the earlier 6–8% hike implemented in April amid continued supply chain disruptions that raised costs of raw materials, packaging and logistics.
Nomura believes that volumes are unlikely to be impacted, while improved realisations are expected to support sales growth and margins.
While Asian Paints has gone for a 6-8% hike, channel checks suggest that Birla Opus took a slightly higher increase of 8-10% (following its hikes of 2-4% in January). Other players such as Berger, JSW-Dulux, Kansai Nerolac and Indigo took similar hikes of 6-8% staggered over two-three phases in March-April (2-3% in March, rest in April).
Systematix Institutional Equities, following a channel check, believe that another round of price hikes of 6-8% could happen in June-July if crude oil holds at current levels.
Paint makers' costs are 35-40% tied to crude-linked raw materials, heightening sensitivity to oil price swings. While prices of phthalic anhydride and packaging expenses have risen sharply with crude's recent climb, a depreciating rupee has added to import cost pressures.
“The initial hikes cover crude oil inflation up to end-4Q26 (covering Brent crude at $75-80/bbl on average) – this inventory will be utilised in 1Q27, when the price hikes largely take effect (with a lag of a month or so). However, crude holding at the current $90-levels implies further sequential inflation of 20% in 1Q27, which remains unaddressed by pricing as yet,” said Systematix Institutional Equities.
It added that with the hikes taken thus far, Q1FY27 gross margins could decline 50-100bps Q-o-Q for Asian Paints and Berger to account for the slight transmission lag. Unless a fresh round of hikes is taken, Q2FY27 gross margins could be impacted by 400-450bps Q-o-Q, as per Systematix.
An industry executive said that they will not shy away from further price hikes if raw material prices remain high. “What’s important is that all the players are protecting their margin by opting for price hikes rather than going for a price war to grab market share. I believe a price hike of 5-7% is around the corner,” the executive said requesting anonymity.