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Informist, Tuesday, Jan. 27, 2026

 

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--Asian Paints: Looking for more opportunities for backward integration
--CONTEXT: Asian Paints management comments in post-earnings analyst concall 
--Asian Paints: Industrial coats business did well in Oct-Dec
--Asian Paints: Q3 decorative volume up despite extended rains, early Diwali
--Asian Paints: Continuously expanding retail distribution footprint
--Asian Paints: Low input costs helped to improve Q3 gross margins
--Asian Paints: Growth in rural areas slightly ahead of urban centres
--Asian Paints: Expect competition to remain heightened in Jan-Mar
--Asian Paints: Industrial segment to drive Jan-Mar growth
--Asian Paints: Expect upcoming Budget to boost demand in industrial pdts Q4
--Asian Paints: Geopolitical uncertainty may impact input costs in Jan-Mar
--Asian Paints: Exchange rate volatility may also impact input costs Jan-Mar
--Asian Paints: Demand for luxury, premium category pdts high
--Asian Paints: Digital promotion spends may continue rising going forward
--Asian Paints: Current volume growth trend to continue going forward
--Asian Paints: Pricing environment 'very volatile' at present
--Asian Paints: Not expecting any price changes in paint products now
--Asian Paints: Expect to spend large amounts to strengthen services segment
--Asian Paints: Will continue to focus on premiumisation
--Asian Paints: FY26 EBITDA margin guidance remains at 18-20%
--Asian Paints: 8-10% volume growth respectable in current conditions
--Asian Paints: See volume-value growth gap of 4-5% continuing in coming qtrs

 

By Narayana Krishna and Arya S. Biju

 

HYDERABAD/MUMBAI – Despite the competitive intensity in the paints industry, Asian Paints Ltd. Tuesday said volume growth in its decorative paints business is expected to be 8-10% going forward. "I think this band would kind of remain in terms of what we would be able to target for the quarter four (Jan-Mar) as well in terms of going forward," Amit Syngle, managing director and chief executive officer of the company, said in a post-earnings call with analysts.

 

The country's largest paints maker Tuesday reported a consolidated net profit of INR 10.60 billion for the December quarter, down nearly 5% on year. Revenue for the quarter was up almost 4% on year at INR 88.67 billion. The company's volume growth of decorative paints in India was 7.9% in the December quarter against 10.9% a quarter ago.

 

Syngle sees heightened competitive intensity and increased spending on brand promotion going forward pose challenges for the company's earnings before interest, tax, depreciation, and amortisation margin. Given these challenges, Asian Paints is sticking to its EBITDA margin guidance of 18-20% for 2025-26 (Apr-Mar), he said.  

 

For the December quarter, Asian Paints reported an EBITDA margin of 20.1%, up from 19.2% reported in the corresponding quarter a year-ago. Softer input costs and controlled spending helped the company to improve December quarter margin, the management said. However, geopolitical uncertainty and exchange rate volatility are seen impacting the company's input costs in the March quarter, it said.

 

Asian Paints said the gap between volume and value growth will be remain at current level of 4-5% in the coming quarters. The company said despite extended rains and early Diwali, it received good demand in November and December, helping to report high single digit volume growth.

 

Syngle said some part of business spilled over into January and the company expects the growth momentum in volumes to continue in the March quarter too led by factors like increase in infrastructure development in the country. The company expects the upcoming Union Budget for FY27 to boost the demand in segments such as industrial coats business in the March quarter. Even in the December quarter, industrial coats segment performed well, he said.

 

After Aditya Birla group's entry into the decorative paints business with its brand Birla Opus, competition has intensified, giving Asian Paints a tough time. Syngle expects the competitive intensity to remain high in the coming quarter. He said the demand for decorative paints in rural areas is slightly higher compared to urban centers. The company said it will focus on continuously expanding its retail network.

 

Syngle said the demand for luxury and premium paint products is high compared to other categories, adding that the company will continue to focus on its premiumisation strategy going forward. Asian Paints is also getting good traction with its regional branding strategy, he added.

 

He said there is no scope for any price cut as the current pricing environment is very volatile. Asian Paints is cautious about its spending on advertising and brand promotion, which account for a significant portion of its expenditure. However, the company said it will continue spending large amounts on promoting its services segment business along with the spending on digital media. The company said it will also look for backward integration opportunities in more areas as it has done for some category products, which are yielding good results.

 

On Tuesday, shares of the company closed at INR 2,622.80 on the National Stock Exchange, down 3% from the previous close.  End

 

Edited by Ashish Shirke

 

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