Analyst Concall
Asian Paints says demand environment not great for sector
This story was originally published at 19:38 IST on 12 November 2025
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--Asian Paints: Raw material prices benign in Jul-Sept, boosted margins
--CONTEXT: Asian Paints mgmt's comments in post-earnings investor call
--Asian Paints: Demand environment for paints industry not great
--Asian Paints: Good monsoon, wedding season may boost demand
--Asian Paints: Competitive intensity remains high
--Asian Paints: Raw material prices expected to remain stable
--Asian Paints: Geopolitical uncertainty may weigh on input costs
--Asian Paints: FX volatility may also weigh on input costs
--Asian Paints: Q2 volume growth driven by focused marketing initiatives
--Asian Paints: Focus more on premium, luxury emulsion to drive value growth
--Asian Paints: EBITDA margin guidance remains 18-20% for FY26
By Narayana Krishna and Pallavi Singhal
HYDERABAD/NEW DELHI - Despite reporting a double-digit volume growth in the September quarter, Asian Paints Ltd. struck a cautious note on demand, saying the overall environment for the paint industry remains "not so great". However, the company expects demand to improve in the coming quarters on the back of good monsoon across regions and the onset of the wedding season, the management said in its post-earnings investor call.
For the September quarter, Asian Paints reported a 43% jump in its consolidated net profit to INR 9.9 billion, as against the Street's estimate of INR 9.0 billion. The company's consolidated revenue increased 6.3% on year to INR 85.3 billion, as against the Street's estimate of INR 81.3 billion. The company's volume growth for the quarter was 10.9%.
Benign raw material prices, focused marketing initiatives, and region specific product launches boosted the September quarter volume and value growth, the company management said. Going forward, the company is planning to focus more on premium and luxury emulsion products to drive value growth. For FY26, the company is expecting a 4-5% gap between value and volume growth, the company said without giving specific growth numbers.
Asian Paints management said the company still maintains its earnings before interest, tax, depreciation, and amortisation margin guidance at 18-20% for 2025-26 (Apr-Mar). Considering the investments on innovation, increased marketing expenditure to reach out to the consumer and competitive intensity, the company wants to maintain the current guidance intact. For the September quarter, the company reported its consolidated EBITDA margin at 17.7% against 15.5% a year ago. Soft raw material prices helped to boost the September quarter margin and the company expects raw material prices may remain stable for coming quarters. However, the company is cautious that the ongoing geopolitical uncertainties and foreign exchange volatility may weigh on input costs.
Competitive intensity is expected to remain high, the management said. The company is facing increased competition from Birla Opus, the paint business of Grasim Industries Ltd. Management added that while discounts and dealer incentives may yield short-term gains, they are unlikely to help sustain market share in the long run.
On Wednesday, Asian Paints shares ended at INR 2,769.80 on the National Stock Exchange, up 4.2% from their previous close. End
Edited by Akul Nishant Akhoury
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