Asian Paints Q4 Review: Near-Term Challenged; Gradual Recovery Post-Q1 Awaited - Systematix Maintains 'Buy'

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Systematix Report

Asian Paints Ltd. delivered slightly lower-than-expected volume/ revenue growth, but a bigger miss on operating margins amid muted demand conditions, consumer downtrading to cheaper products and high competitive intensity.

Revenue declined 4% YoY (fitth straight quarter of decline; FY25: -4.5% YoY), with volume +1.8% YoY, flat effective pricing and adverse mix. Management cautioned that demand remains sluggish in Q1 FY26 as well with no meaningful pick-up visible as yet.

Asian Paints expects FY26 revenue growth in single digits with the volume-value gap below 6%. The quarter saw sustained slowdown in urban/ Tier-1,2 markets while tier-3/4 did better; Asian Paints noted that repainting is getting postponed amid weak consumer sentiment, and demand for home construction/ renovation is also subdued. The international (-1.5% YoY) and home décor businesses are facing rough weather as well. Ebitda/ PAT declined 15%/27% YoY in Q4 and 20%/25% in FY25.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.