Asian Paints Ltd reported a 7.5% year-on-year increase in consolidated net profit attributable to owners to ₹1,067.63 crore for the quarter ended September 2026 (Q2 FY27), according to latest exchange filings. The company's revenue from operations rose 16.9% year-on-year to ₹9,976.51 crore from ₹8,531 crore in Q2 FY26, supported by growth across domestic decorative and industrial coatings businesses as well as international operations. However, profitability came under pressure from rising raw material costs and supply constraints linked to the West Asia conflict. The results fell short of analyst estimates, with net profit missing the Bloomberg consensus estimate of ₹1,141.99 crore based on 22 analyst estimates. EBITDA rose 3.6% year-on-year to ₹1,557.1 crore from ₹1,503.4 crore, though PBDIT margin contracted 202 basis points to 15.6% from 17.7% a year earlier, reflecting the impact of sharp raw material inflation and material availability constraints driven by geopolitical disruptions.
Asian Paints is implementing a calibrated pricing approach as it balances the need to recover higher costs against the risk of dampening consumer demand, according to Managing Director and CEO Amit Syngle. The company has implemented price increases of 7% in Q1, 5% in Q2, and 3.5% in the latest quarter, with Syngle noting that passing on the full impact of input cost inflation is not viable given the discretionary nature of painting as a household expense. "Painting is a discretionary household expense, making demand particularly sensitive to price increases," Syngle told analysts. "It's not a category which is every day used to that extent and therefore one of the levers which customers kind of really get into a bind is that at least the maintenance part of this thing can get deferred." The company expects demand to pick up in October and sustain momentum into November, supported by the extended festival season and upcoming wedding season, while maintaining its cautious stance on pricing.
The company's domestic decorative paints business recorded volume growth of 6.4% and value growth of 14.5% during the July-September quarter, according to Business Standard. The overall domestic coatings business registered value growth of 16.4% and volume growth of 6.8%, supported by strong performance in industrial coatings where value growth stood at 31.8%. This growth was achieved despite the September quarter being seasonally softer. Managing Director and CEO Amit Syngle noted that the company delivered a resilient performance in Q2, sustaining momentum from previous quarters. The decorative business delivered value growth of 14.5% with volume growth of 6.4%, while the industrial coatings business continued its impressive run with value growth of 31.8%. According to latest reports, standalone net profit rose 14.6% to ₹1,095.6 crore while standalone revenue increased 14.8% to ₹8,423.6 crore.
International operations delivered strong sales growth with net sales increasing 29.5% year-on-year to ₹1,095.6 crore from ₹846 crore, as reported by Moneycontrol. In constant currency terms, revenue grew 23.7%. However, profit before tax from international operations declined 31% to ₹52.7 crore despite the increase in revenue. The company said its international business recorded growth across all regions, including the Middle East, where operations faced servicing challenges arising from geopolitical developments. According to latest reports, the company's APPPG segment net sales rose 28% to ₹374.5 crore, while PPGAP segment net sales advanced 33.7% to ₹794.8 crore. The bath fittings business recorded net sales growth of 18.5% to ₹94 crore, and the kitchen segment saw net sales rise 13% to ₹110.3 crore. In the home decor business, bath fittings segment saw 19% increase in net sales with profit before tax of ₹9 crore, as against a loss of ₹4 crore in the same period last year. However, kitchen business' net sales grew 13% YoY to ₹110 crore, while loss before tax widened to ₹8 crore.
Asian Paints commissioned the first phase of its vinyl acetate-ethylene (VAE) manufacturing facility at Dahej in Gujarat during the quarter, as reported by Business Standard. The investment is intended to strengthen backward integration, improve cost competitiveness and support the development of differentiated products. According to latest reports, the first phase of the project has been commissioned and formulations are already underway. The company expects to use part of the plant's capacity by March 2027 and reach full utilization of 150,000 tonnes in FY28. The facility is expected to support existing products through cost savings and greener formulations, while enabling new offerings, particularly in the premium segment. Asian Paints shares were trading 0.6% higher at ₹2,298.70 apiece on Thursday after the results announcement, with the benchmark Sensex rising 1.24%. The stock has declined 18.6% so far in 2026, underperforming the benchmark Nifty 50 index, which has fallen 12.4% during the same period. The board of directors announced an interim dividend of ₹5.75 per share for the financial year ending March 31, 2027, with the record date set for November 4 and dividend payment by November 13.
