Asian Paints has announced its financial results for the first quarter of FY26 (April–June 2025), showing a 6% year-on-year (YoY) decline in net profit. The consolidated net profit came in at ₹1,100 crore, down from ₹1,170 crore in the same quarter last year.
Despite the fall, the figures aligned with market expectations, which predicted a profit range of ₹1,099–1,108 crore. Revenues also saw a slight dip of about 0.2–0.3% YoY, landing between ₹8,924–8,939 crore. The company, however, showed strong recovery compared to the previous quarter, with profit jumping nearly 59% sequentially.
Asian Paints Domestic & International Performance: A Mixed Bag
The company’s core segment—domestic decorative paints, which contributes about 87% of its annual revenue—saw a volume growth of 3.9%. However, revenue from this segment slipped 1.2% YoY due to weak consumer demand and changes in product mix. Asian Paints’ home décor business underperformed amid lower household spending, though its Beautiful Homes retail chain performed steadily.
Internationally, the company posted strong value growth between 8.4% and 11.1%, with the Middle East and South Asia driving performance. On a constant currency basis, this figure rose to an impressive 20.4%, showing the brand’s strength across global markets despite currency fluctuations.
In the industrial coatings segment (auto and protective), revenue climbed 8.8%. However, EBITDA margins dropped by approximately 70 basis points—from 18.9% to around 18.18%—primarily due to increased marketing spends and price discounts to stay competitive.
Management Commentary: Long-Term Outlook Stays Positive
CEO Amit Syngle acknowledged the subdued demand in June, partly due to early monsoons, but noted some improvement in urban markets. He expressed confidence in the company’s long-term growth prospects, stating:
“Demand from urban centres has shown slight improvement, despite an early monsoon slowdown in June. We remain upbeat on long-term growth and will continue to fuel innovation and strengthen brand saliency while navigating near-term headwinds.”
The management also confirmed its focus on enhancing product innovation and improving market share despite growing competition, especially with new entrants like Grasim Industries’ Birla Opus stepping into the paint space.
Stock Market Reaction & Analyst Take
On the day of the results announcement, Asian Paints’ share price rose between 1.7% and 2%, trading near ₹2,400. The stock touched an intraday high of ₹2,408 on NSE and ₹2,418 on BSE. On July 28, it ended at ₹2,358.95, marking a 1% gain and outperforming broader market indices despite overall market weakness.
That said, the stock remains over 30% below its 52-week high of ₹3,394, reached in September 2024.
Analysts largely viewed the results as neutral, noting that the dip in profit and revenue was expected due to a slowing retail market and pricing pressures. However, the stability in volumes, international growth, and positive sequential performance offer signs of resilience. Brokers estimate support for the stock near ₹2,300, with potential upside toward ₹2,500 if demand trends improve and margin pressures ease.
Conclusion: Navigating Challenges with Stability
Asian Paints has delivered a performance in Q1 FY26 that, while showing signs of stress due to economic conditions and rising competition, remains stable and largely in line with expectations.
The company’s international presence, volume stability, and management’s long-term focus on innovation and branding are key strengths. Investors have responded positively, and the stock continues to show resilience in a competitive and uncertain market environment.
F.A.Q.
– Why did Asian Paints’ net profit fall in Q1 FY26?
Asian Paints reported a 6% year-on-year drop in net profit to ₹1,100 crore due to softer consumer demand, higher marketing expenses, and discounting efforts, despite stable volumes.
– How did the domestic decorative paints segment perform?
The domestic decorative segment saw a 3.9% growth in volume, but revenue declined by 1.2% year-on-year due to weaker consumer spending and changes in product mix.
– What helped cushion the profit fall for Asian Paints?
Strong international business performance—especially in the Middle East and South Asia—along with improved sequential profit and revenue helped cushion the overall downside.
– How did the stock market react to the Q1 FY26 results?
Despite the fall in profit, Asian Paints’ share price rose around 1.7–2% on results day, reflecting investor confidence in the company’s long-term strategy and stable performance.
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