Berger Paints Dividend 2026 — ₹4/Share (400%): Date, Yield, History

The Board of Directors of Berger Paints India Limited, at its meeting held on 12 May 2026, recommended a final dividend of ₹4.00 per equity share (400%) of face value ₹1.00 each, fully paid-up, for the financial year ended 31 March 2026.

This is the company's only dividend for FY26 — Berger follows an annual single-dividend cycle, so the full-year payout and this event are the same ₹4.00.

The recommendation is subject to approval by members at the 102nd Annual General Meeting scheduled for 12 August 2026 (via video conferencing). Until the AGM passes the resolution, the dividend remains a recommendation, not a declared entitlement.

Why this matters

The ₹4.00 marks the sixth consecutive annual increase in Berger's dividend per share, rising from ₹3.80 in FY25. The raise is notable because it comes in a year when reported profit actually slipped — a divergence we examine in the sections below.

Reality Check

Berger is not a high-yield stock. Its sub-1% yield reflects a premium-valued growth compounder (P/E around 51x), where investors are paid mainly through capital appreciation rather than dividends. For an investor in the 30% tax slab, the post-tax yield falls to roughly 0.51%. The dividend is best read as a signal of financial health and capital discipline, not as an income stream.

Berger has raised its dividend every single year over this period, compounding at about 11.4% per annum across five years. There are no cuts, no suspensions and no missed years in the recent record.

Note: Figures from FY2021 onwards are on the current ₹1 face value and are directly comparable. Pre-2018 payouts were on a different face value and are not compared here to avoid distortion.

Classification: Consistent Payer

Berger qualifies as a Consistent (Growing) Dividend Payer. The steady annual increases, backed by an established consumer franchise, place it in the most reliable payer category despite the modest absolute yield.

Zooming out, Berger has still compounded revenue at roughly 12% and profit at about 10% over five years, with return on equity around 17% and return on capital employed around 22% — solid, asset-light economics typical of a leading paint franchise.

Cash Backs the Dividend — Even as Profit Dipped

Reported profit fell in FY26, but cash generation did not. Operating cash flow rose to ₹1,540 Cr, converting an impressive 102% of operating profit into cash. Free cash flow (after capex) was a healthy ₹1,037 Cr.

A near-debt-free balance sheet means the dividend is not competing with interest obligations. Debt is not rising to fund distributions — borrowings have actually trended down over recent years. This is the cleanest possible backdrop for dividend affordability.

NIV = Not Independently Verified from a primary source at time of writing; cells left unfilled rather than estimated. Peer figures are indicative and price-dependent.

Within the pack, Berger sits at the low-yield, growth end. Akzo Nobel is the income outlier (yield near 2.7% but paying out essentially all its earnings), while Asian Paints distributes a larger share of profit. Berger's more moderate ~41% payout leaves it the most reinvestment headroom among the large peers — consistent with a company still spending on capacity and share defence.

Ownership Shift Worth Noting

The dividend is proportionate — every shareholder receives the same ₹4 per share — but promoters naturally capture the bulk given their high stake. Separately, foreign investors have steadily trimmed exposure (FII holding fell from ~10.7% in early 2024 to ~4.8% by June 2026), while domestic institutions have moved the other way (DII holding roughly doubled to ~11.8%). This rotation is a structural backdrop investors should be aware of.

How Dividends Are Taxed in India

Since April 2020, dividends are taxable in the hands of the shareholder at their applicable income-tax slab rate. The company also deducts TDS at 10% under Section 194 if total dividend paid to a resident shareholder exceeds ₹5,000 in a financial year (TDS is 20% without a valid PAN). The TDS is adjustable against final tax liability.

Worked Examples (30% Slab Investor)

For a 1,000-share holder, the gross ₹4,000 stays below the ₹5,000 TDS threshold, so no tax is deducted at source — but the amount is still taxable at slab when filing returns. At a 30% slab (plus 4% cess), the effective tax is 31.2%, leaving ₹2,752 net and a post-tax yield of about 0.51% on the current price.

Illustrative only. Cess, surcharge and individual circumstances vary. This is not tax advice — consult a qualified tax professional.

In short, Berger's ₹4 dividend is safe and well-funded, but small. It is best understood as a marker of financial discipline in a premium growth compounder, rather than a source of meaningful income. The real investment debate sits with growth, margins and competition — not the yield. Readers should weigh the positives and risks against their own goals.