Asian Paints Ltd.'s second-quarter profit exceeded street estimates, driven by healthy volume growth, while operating margin expanded.
Consolidated net profit surged 43% to Rs 994 crore in the July-September quarter, compared to Rs 695 crore in the corresponding quarter last year, according to results announced on Wednesday. The bottomline beat the Bloomberg consensus estimate of Rs 887 crore.
Revenue increased 6% to Rs 8,531 crore versus Rs 8,028 crore last year, also beating analyst estimates.
Operation performance improved, with earnings before interest, tax, depreciation and amortisation jumping 21%, leading to a 220 basis points expansion in Ebitda margin. One basis point is one-hundredth of a percentage.
Asian Paints Q2 Highlights (Consolidated, Year-over-Year)
Revenue up 6.3% to Rs 8,531 crore versus Rs 8,028 crore (Bloomberg estimate: Rs 8,157 crore).
Ebitda up 21.3% to Rs 1,503 crore versus Rs 1,240 crore (Bloomberg estimate: Rs 1,341 crore).
Margin to 17.6% versus 15.4% (Bloomberg estimate: 16.4%).
Net Profit up 43% to Rs 994 crore versus Rs 695 crore (Bloomberg estimate: Rs 887 crore).
Volume Growth
Asian Paints reported an improvement in the domestic decorative business with volume growth of 11% and a 6% increase in value, despite the challenges posed by an extensive and prolonged monsoon.
"This growth was driven by our ability to generate demand across urban and rural areas through various regional activations and intense marketing and brand-building measures," a press statement said.
"Our ongoing efforts to elevate cost efficiencies have delivered positive results, allowing us to increase our profit margins even as we increased investments in our brand and retailing initiatives," said Managing Director and CEO Amit Syngle.
International sales increased by 10% to Rs 846 crore, led by key markets in South Asia, the Middle East and Africa.
Sales decreased in the bath fittings, kitchen and white teak businesses. Steady double-digit growth was registered in the industrial segments, the company said.
The share price jumped as much as 5.7% after the Q2 results. The stock is up nearly 23% on a year-to-date basis.
Asian Piants Dividend
Asian Paints announced an interim dividend of Rs 4.5 per share for fiscal 2026. The record date for the interim dividend has been fixed as Tuesday, Nov. 18, and the dividend will be paid to the shareholders on or after Thursday, Nov. 27.
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