Asian Paints shares rallied as much as 4% to ₹2,778.80 on the NSE following exceptional Q4FY26 results. The company reported a consolidated net profit of ₹1,172.1 crore for the fourth quarter, marking a 69.3% year-on-year increase from the previous year. Revenue from operations during the January-March quarter rose 10.8% to ₹9,228.5 crore, compared with the corresponding quarter last year. According to reports from Business Standard, total income increased by more than 11% year-on-year to ₹9,418 crore, while total expenses rose at a slower pace, increasing nearly 8% to ₹7,829.17 crore. The company also announced a final dividend of ₹23 per share, taking the total dividend for FY26 to ₹27.50 per share including interim dividends.
The company demonstrated strong operational efficiency with EBITDA rising 24.4% year-on-year to ₹1,787 crore from ₹1,436.2 crore in the corresponding period last year. EBITDA margin expanded by 214 basis points to 19.3%, compared with 17.2% a year earlier. For the full financial year ended March 31, 2026, Asian Paints reported a consolidated net profit of ₹4,325.35 crore, up 18% from ₹3,667.23 crore recorded in the previous financial year. Annual revenue from operations rose around 5% year-on-year to ₹35,583.54 crore in FY26. According to Nuvama Institutional Equities, gross margin reached 44.8%, up 87 basis points year-on-year, marking a multi-quarter high, while EBITDA margin guidance remained at 18-20% despite ongoing West Asia conflict.
Prabhudas Lilladher recommended an 'Accumulate' rating on Asian Paints with a target price of ₹2,626 in its research report dated June 01, 2026. The brokerage noted that "we estimate EPS CAGR of 10.5% over FY26-28E and value the stock at 46xFY28 and arrive at TP of ₹2,626." Nomura raised its target price to ₹3,600 from ₹3,250, implying an upside of 35% while maintaining its 'Buy' rating. The international brokerage noted that "we see a high probability of crude prices being lower in the next six months vs current levels, which should be supportive for operating margin." Nuvama Institutional Equities raised its price target to ₹3,470 from ₹3,390, looking at an upside of 29% from current market price. JM Financial maintained its 'Add' rating with a target price of ₹2,815 (earlier ₹2,290), implying an upside of 5.4%.
Management has guided for high single-digit volume growth in FY27 despite significant price hikes, supported by a favourable base, more painting days due to El Niño conditions and an extended festive season. According to Prabhudas Lilladher's research report, management continues to focus on providing "one stop shop solution with waterproofing, construction chemicals, innovations in decorative paints along with sleek, ESS ESS bath fittings, lighting and furnishings." The company is aiming for 8-10% volume growth in FY27E. Management expects competitive intensity in the paints sector to remain elevated, prompting Asian Paints to continue focusing on product innovation, strengthening brand salience, regionalisation and execution to counter competitive pressures. Combined with double-digit price increases, including hikes of around 10.4% already implemented and an additional 2-4% announced from June, along with a lower adverse mix impact of 3-4%, this is expected to drive mid-teen sales growth in FY27. As per Nuvama, "For FY27, we expect value to grow ahead of volume growth."
Asian Paints shares have shown strong momentum with a 3% rise in the last five trading sessions and 12% gain in the past month. However, the stock has fallen nearly 5% in the last six months. The stock was among the top five gainers in the Nifty 50 following the Q4 results announcement, though it later moderated as market sentiment weakened. According to The Financial Express, the brokerage houses' bullish calls on the stock helped drive the initial rally. The company's strong performance across key financial metrics, combined with positive management commentary and enhanced brokerage targets, continues to support investor confidence in the paint manufacturer's growth prospects.
