Paint Stocks Face Pressure as Crude Prices Rise Towards $97 Barrel

Paint stocks in India were trading mixed on September 7 as crude oil prices rose towards $97 a barrel. Asian Paints was down 0.43% to ₹2,516.40 apiece, while Kansai Nerolac Paints was up 0.71% to ₹195.58.

Berger Paints India and Indigo Paints were also trading lower at ₹484.40 and ₹1,158.20 respectively. JSW Dulux, however, was up 0.2% to ₹3,181 on the NSE.

The paint stocks are sensitive to crude oil prices because several key raw materials, including solvents, resins, and other petrochemical derivatives, are linked to crude prices. Analysts note that companies can offset some of the impact through price hikes and cost efficiencies, but there is usually a lag, meaning margins can come under pressure in the near term.

Leading paint manufacturers expect healthy demand to continue through the festive season, with companies targeting strong volume and revenue growth. Asian Paints Managing Director Amit Syngle said demand conditions remained 'decent' through the quarter and the company continues to expect volume growth of 8-10% for FY27.