Asian Paints Shares Fall Nearly 3% Despite Q1 Earnings Beat — Should You Buy?

Shares of Asian Paints Ltd are trading under pressure on Thursday, July 30, 2026, despite a stronger-than-expected June-quarter performance. The concern seems to be around the rising competition by Birla Opus. 

Asian Paints' Q1 performance was driven by both higher volumes and value growth in its core decorative paints business. Domestic decorative paints posted 9% volume growth and 16.6% value growth, while the industrial coatings business sustained mid-teen growth. International business also remained a bright spot, with net sales rising 27.2% year-on-year.

Asian Paints' shares fell as much as 2.87% to Rs 2,688 apiece in early trade.

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Asian Paints Q1 (Cons, YoY)

• Other Income At Rs 241 crore Vs Rs 193 crore 
• Tax Expense At Rs 536 crore Vs Rs 392 crore 
• Profit [GU] 39.9% At Rs 1,539 crore Vs Rs 1,100 crore
• Revenue [GU] 17.9% At Rs 10,542 crore  Vs Rs 8,939 crore 
• EBITDA [GU] 33.4% At Rs 2,169 crore Vs Rs 1,626 crore 
• EBITDA Margin At 20.6% Vs 18.2% 

Brokerages on Asian Paints

Jefferies

• Maintain Buy; Hike target price to Rs 3,350 from Rs 3,300.
• Q1 was strong across almost all parameters.
• Revenue growth reached a multi-year high, while margins beat expectations.
• Management retained its FY27 volume and margin guidance despite inflationary risks.
• Outlook remains positive notwithstanding intense competition.
• Ramp-up in VAM/VAE is expected to provide a medium-term margin lever.

Goldman Sachs

• Maintain Sell; Hike target price to Rs 2,725 from Rs 2,575.
• Q1 performance was ahead of estimates, driven by a strong margin beat.
• Margins are likely to moderate as the benefit of low-cost inventory fades, but are expected to remain in the 18-20% range.
• Management expects 8-10% volume growth for FY27.

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