Paint industry optimistic on growth despite crude volatility, rising costs

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 .

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