- Asian Paints Q2 net profit rose 7.4% to Rs 1,068 crore, below estimates
- Revenue grew 16.94% to Rs 9,977 crore, driven by domestic coatings growth
- EBITDA margin dropped to 15.6% due to raw material inflation and supply issues
Asian Paints Ltd.'s September-quarter earnings fell short of analyst estimates as sharp raw material inflation and supply constraints weighed on profitability, even as revenue rose nearly 17% year on year.
The paintmaker's domestic coatings business recorded value growth of 16.4%, supported by industrial coatings, while volume growth in its decorative paints business stood at 6.4%. The company is raising prices in stages to offset cost pressures but absorbed part of the inflation during the quarter.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
Asian Paints Q2 Results (Consolidated YoY)
- Net profit up 7.4% to Rs 1,068 crore versus Rs 994 crore (Bloomberg estimate: Rs 1,141 crore).
- Revenue up 16.94% to Rs 9,977 crore versus Rs 8,531 crore (Estimate: Rs 9,782 crore).
- Ebitda up 3.6% to Rs 1,557 crore versus Rs 1,503 crore (Estimate: Rs 1,668 crore).
- Ebitda margin at 15.6% versus 17.6% (Estimate: 17.1%).
- Interim dividend of Rs 5.75 per share declared.
Inflation And Pricing
Asian Paints Managing Director and Chief Executive Officer Amit Syngle said sharp raw material inflation and material availability constraints linked to geopolitical disruptions had affected the operating environment, with the full impact felt in the September quarter.
The company said it had calibrated price increases and absorbed part of the cost inflation to protect consumer demand. With inflationary pressures showing little sign of easing, it is implementing another round of staggered price increases in its coatings business while stepping up cost-efficiency initiatives.
The pressure on consolidated margins came despite growth in the company's main domestic coatings business. Domestic coatings value growth was 16.4%, with volume growth of 6.8%, according to the company. Within this, the India decorative business recorded value growth of 14.5% and volume growth of 6.4%.
Industrial coatings value growth was 31.8%, helping the broader domestic coatings business. The figures indicate that value growth outpaced volume growth in both domestic coatings and decorative paints, although the company did not quantify the separate contribution of pricing and product mix.
International And Home Decor
Asian Paints' international business recorded a 29.5% increase in net sales to Rs 1,095.6 crore. Growth in constant-currency terms was 23.7%, with the company reporting gains across regions. However, profit before tax fell 31% to Rs 52.7 crore, showing that higher sales did not translate into higher pre-tax profit in the business.
In Home Decor, the bath fittings business reported an 18.5% increase in net sales to Rs 94 crore and moved to a profit before tax of Rs 8.7 crore, compared with a loss of Rs 4 crore a year earlier.
The kitchen business recorded 13% sales growth to Rs 110.3 crore, but its loss before tax widened to Rs 7.9 crore from Rs 3.6 crore. White Teak's net sales declined 11.8% to Rs 23.3 crore, while Weatherseal sales fell 1.8% to Rs 20.3 crore.
The company commissioned the first phase of its vinyl acetate ethylene manufacturing facility at Dahej during the quarter. Syngle said the investment would support product development and cost competitiveness. The company did not quantify its expected financial contribution.
Dividend
Asian Paints declared an interim dividend of Rs 5.75 per equity share for FY27. The record date is Nov. 4, 2026, and the dividend will be paid on or after Nov. 13, 2026.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.