New Delhi, Oct. 5 -- Paint stocks have remained under pressure this year, with Asian Paints down 15.5% year-to-date (YTD), Kansai Nerolac falling 25.01%, and Berger Paints India declining 14.34%. However, with the festive season approaching, investors are watching for signs of a recovery in demand and margins.

According to Elara Securities, demand for paints is likely to remain muted in Q2 FY27 as dealers work through excess inventory accumulated in Q1 amid softer secondary offtake. August was particularly weak, although September saw some improvement as dealers began stocking premium paints ahead of the festive season.

The brokerage expects industry volume growth in the mid-single digits, with overall revenue growth estimated at 12-13%...