India’s largest paint manufacturer, Asian Paints Ltd, delivered mixed first-quarter results for FY26. While revenue and profit dipped slightly year-on-year, stronger-than-expected volume growth and sequential improvement helped lift investor sentiment.
Key Financial Highlights
| Metric | Q1 FY26 | YoY Change | QoQ Change |
|---|---|---|---|
| Revenue | ₹8,924 crore | ↓ 0.2% | ↑ 7% |
| Net Profit | ₹1,100 crore | ↓ 6% | ↑ 59% |
| EBITDA Margin | 18.2% | ↓ 70 bps | Improved from 17.1% |
Volume Growth: A Positive Surprise
- Domestic decorative segment volume grew by 3.9%, exceeding analyst estimates of 2–3%
- Industrial coatings revenue rose 8.8%, led by auto and protective coatings
- International business delivered 8.4% value growth, driven by UAE, Egypt, and South Asia
This marks a recovery from the muted volume expansion seen in the last two quarters.
Management Commentary
“We saw marginal improvement in urban demand, though monsoons slowed momentum in June. Our focus remains on innovation and brand saliency as we navigate current challenges.” — Amit Syngle, MD & CEO, Asian Paints Ltd
The company acknowledged ongoing stress in household discretionary spending and sluggish demand in the home décor category. However, its premium retail initiative, Beautiful Homes, continues to gain traction.
Stock Snapshot
- Share price as of July 29: ₹2,400.20, up 1.72% intraday
- Recovered from a recent low of ₹2,325 earlier in July
- Year-to-date gain: approximately 4.5%
- Six-month gain: around 8%
The upbeat volume performance and sequential profit rebound contributed to the stock’s recovery.
Outlook: Factors to Watch
Global expansion and home décor synergies
Urban demand trajectory post-monsoon
Margin impact from competitive intensity and operating costs
Product mix strategies and price actions
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