Asian Paints Expects Up To 10% Volume Growth In FY27 As Demand Holds Up Amid Inflation Pressures

Asian Paints Ltd expects volume growth of 8%-10% in FY27 as demand remains steady across rural and urban markets despite inflation concerns and higher prices.

The country's largest paintmaker said it has seen encouraging demand trends in April and May and expects market conditions to support high single-digit volume growth through the current financial year.

"We are still kind of confident that overall demand conditions should continue in terms of looking at giving us closer to ... high single-digit volume growth of closely in the band of about 8% to 10%," Managing Director and Chief Executive Officer Amit Syngle said during the company's post-earnings conference call.

The outlook offers an early signal on consumer demand in India, given Asian Paints' position across housing, home improvement and repainting markets. The company said both rural and urban markets recorded growth during the March quarter, with rural demand expanding at a faster pace.

Growth Drivers

Syngle said demand conditions improved through all three months of the March quarter, helping the company return to double-digit volume growth.

Decorative paints volume grew 12.4% in the quarter, while value growth stood at 10.2%, he said. For FY26, decorative paints volume growth was close to 9%.

The company expects demand support from a longer festive season and the timing of Diwali in the second half of FY27.

"As far as I think bases are concerned, overall, quarter two, we also have a longer Diwali to that extent," Syngle said.

He added that early indicators from April and May remained favourable and that the company expects some of the recent demand momentum to continue.

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Risks Remain

Asian Paints said geopolitical developments remain the key risk to its outlook because of their potential impact on inflation and consumer demand.

"We are looking at overall good, fairly, okay demand conditions," Syngle said. "The only worry in the segment is basically the geopolitical scenario."

The company has already implemented price increases of about 10.5%-11% to offset higher input costs and said further increases may be considered if inflation remains elevated.

At the same time, Syngle said competitive intensity in the paints market remains high and is likely to continue through the year as both existing and newer players remain active.

"We feel that the competitive intensity will continue to grow in terms of how we see the year ahead," he said.

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