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Informist, Friday, May 29, 2026

By Ruchira Kagita

MUMBAI - Asian Paints Ltd. posted a strong set of earnings for the March quarter. The company's consolidated net profit and sales beat analysts' expectations. The country's largest paint maker's volume growth also came in above the Street view. Its growth in net profit was the highest in 15 quarters.

The company's consolidated net profit for the quarter jumped 69% on year to INR 11.72 billion. The  net profit was around 12% higher than analysts' estimate of INR 10.46 billion. The company's top line rose almost 11% on year to INR 92.47 billion. This was the paint maker's best-ever on-year sales growth in the past 12 quarters. The Street had pegged the company's total revenue from operations at INR 87.89 billion. 

The company's decorative business in India delivered a volume growth of 12.4% on year. The segment posted a 10.2% value growth. The company's coatings division also displayed a healthy volume and value growth of 12.7% and 11%, respectively, led by the industrial coatings segment.  

The Mumbai-based paint maker's sales from its international business increased 8.2% on year in constant currency. The sales were driven by its units in Sri Lanka, Eygpt, and the United Arab Emirates. In rupee terms, sales were 11% higher at INR 8.88 billion. 

Asian Paints' earnings before interest, taxes, depreciation, and amortisation margin went up 24.4% on year to INR 17.87 billion in the quarter ended March. Its EBITDA margin meanwhile was 19.4%, higher compared with 17.2% in the same period a year earlier. The company's EBITDA rose even as its total expenses grew at their highest pace in over 12 quarters. Its total expenses for the qaurter was INR 78.29 billion, up 7.6%. 

"...margins improved through cost discipline aided by material deflation and operational efficiencies even as we continued to invest in longterm growth drivers," said Amit Syngle, the managing director and chief executive officer of Asian Paints, said in the earnings press release.

The company's total expenses rose mainly on account of an increase in its cost of raw materials consumed and purchases of finished goods. It spent INR 39.85 billion to procure raw materials and INR 10.61 billion for its goods to be sold. While cost of materials went up a little over 2% on year, they rose almost 10% quarter-on-quarter. The sequential rise in cost of materials is the highest in 15 quarters. The on-quarter increase in raw material costs was likely due to the war in West Asia. "The external environment remains fluid, with the West Asia conflict contributing to near-term uncertainty in demand," Syngle said.

The company reported growth across all the three segments of its home decor businesses during the quarter. Its sales from its bath fittings division went up 3.7% year-on-year to INR 954 million and those from its kitchen business grew 16.5% to INR 991 million. Revenue from the white teak and weatherseal division increased 16.8% to INR 234 million.

The total revenue from its subsidiary, PPG Asian Paints Pvt. Ltd. was up almost 21% during the reporting quarter at INR 5.86 billion. PPG Asian Paints is involved in the company's automotive coatings business. Meanwhile, sales from its joint venture, Asian Paints PPG Pvt. Ltd., were 15% higher at nearly INR 4 billion. Asian Paints PPG is key player in the protective and industrial coatings space. 

For 2025-26 (Apr-Mar), Asian Paints' consolidated net profit rose 18% on year to INR 43.25 billion on revenues of INR 355.84 billion. Total sales during the financial year climbed around 5%. The company's EBITDA for FY26 increased 11.5% on year to INR 66.96 billion and margin was 18.9%. Its earnings for the full year were in line with what it had forecast. The top brass at the company had guided for the EBITDA margin to be around 18-20%, and sales growth to be 4-5% for FY26. 

Going forward, the company said calibrated price hikes along with agile sourcing and cost optimisation should help offset the hit from raw material inflation and currency depreciation. "10.4% cumulative price increase implemented in India Decorative business till now," the company said in its investor presentation.

The company will pay a final dividend of INR 23 per share for FY26 and the record date to finalise the eligiblity of shareholders for the dividend is set as Jun. 23. Asian Paints reported its earnings for the March quarter and FY26 during market hours Friday. Shares of the paint maker rose initially but closed in the red at INR 2,671.60 on the National Stock Exchange.  End

Edited by Akul Nishant Akhoury

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