Asian Paints‘ first-quarter profit and revenue were down amid subdued demand and competitive intensity, but met street estimates. Country’s largest paint-maker reported a 6% fall in consolidated net profit year-on-year (y-o-y) to Rs 1,100 crore in the quarter-ended June, 2025 (Q1FY26). While revenue fell 0.3% y-o-y to Rs 8,939 crore, something analysts had factored in given the heightened competition in recent quarters.
Sequentially, both revenue and profit were up 7.1% and 59% respectively. Bloomberg consensus estimates had pegged Q1 net profit and revenue at Rs 1,101 crore and Rs 8,989 crore respectively. Shares of Asian Paints closed trade 1.81% up on Tuesday on the BSE at Rs 2,401.70 apiece.
Volume uptick
The company witnessed a 3.9% increase in volumes for its decorative paints business in India, but faced a revenue decline of 1.2% in Q1. Besides soft demand, the company said that an early onset of the monsoon, along with a shift in product mix, impacted revenue.
Earnings before interest, tax, depreciation and amortisation (Ebitda) declined 4.1% to Rs 1,625 crore, compared to Rs 1,693.8 crore in the same period last year. Bloomberg consensus estimates had pegged Ebitda at Rs 1,659 crore for the June quarter. Meanwhile, Ebitda margins as a percentage of net sales dropped to 18.2%, down from 18.9% last year. Street estimates had pegged Ebitda margins at 18.46% for the period.
International, industrial segments
Home décor categories saw a de-growth in Q1, reflecting pressure on household disposable incomes. The international business registered a value growth of 8.4%, driven by strong performance in Asian markets, the UAE, and Egypt.
Asian Paints MD & CEO Amit Syngle said the company continued to navigate the demand headwinds and competitive intensity. “We continue to drive innovation and strengthen our brand saliency,” he added.
The domestic decorative paints segment showed relative improvement compared to previous quarters, analysts said, with urban centres contributing to a marginal uptick in demand during the June quarter. The broader paints industry also experienced a slight recovery in Q1, indicating early signs of stabilisation, they added.
Operationally, Asian Paints reported a slight drop in margins, which Syngle attributed to increased investment in sales and marketing. The industrial coatings division posted growth of 8.8%, supported by strong performance in automotive and protective coatings businesses.