Asian Paints on Wednesday reported a 43% year-on-year increase in its consolidated net profit for the September quarter (Q2FY26) to Rs 994 crore, beating street estimates of Rs 895 crore for the period.
Revenue from operations stood at Rs 8,531 crore during the quarter, up 6.3% y-o-y, and ahead of Rs 8,157 crore forecast for the period, according to Bloomberg analysts. The performance was driven by decorative, automotive and industrial paints, the company said.
“We saw an improvement in our domestic decorative business with a double-digit volume growth of 10.9% and a 6% increase in value, despite the challenges posed by an extensive and prolonged monsoon. This growth was driven by our ability to generate demand across urban and rural areas,” Amit Syngle, MD & CEO of Asian Paints, said on Wednesday.
Earnings before interest, tax, depreciation and amortisation (Ebitda) grew 21.3% y-o-y to Rs 1,503 crore, against a consensus estimate of Rs 1,341 crore for the period. Ebitda margins expanded 220 basis points to 17.6% versus 15.4%, as the company focused on cost efficiencies.
Syngle also said the quarter was characterised by concentrated innovation, execution, and the regional adaptation of initiatives, leading to robust performance. However, he cautioned that the business environment remained tough and constantly evolving amid competitive intensity in the sector.
“Growth in Q2 was further accelerated by enhanced performance in our automotive and industrial protective coatings segments, contributing to an overall 6.7% value growth in the domestic coatings business,” Syngle said.
International business registered a growth of 9.9% y-o-y in Q2. On a constant currency basis, the international portfolio delivered revenue growth of 10.6% for the quarter, led by key markets in South Asia, West Asia and Africa, it said. The company derives around 80-85% from its India business and the rest (15%) comes from international markets.
Shares of Asian Paints closed trade up 4.46% to Rs 2,773.40 apiece on the BSE on Wednesday, even as the broader BSE Sensex was marginally up (0.71%) at 84,466.51 points.