Asian Paints beat June-quarter estimates on all fronts led by price hikes and stable demand conditions. The company’s consolidated net profit rose 39.9% year-on-year (YoY) to Rs 1,539 crore, compared with Rs 1,100 crore in the corresponding quarter last year. Profit also comfortably beat Bloomberg consensus estimates of Rs 1,240 crore for the period.
The revenue increased 17.9% YoY to Rs 10,542 crore, against Rs 8,939 crore in the year-ago period. The topline was higher than the estimated Rs 10,183 crore for the quarter.
Managing Director and CEO Amit Syngle said the company started FY27 on a strong note, building on the momentum of the previous quarter. “We delivered strong profitability, supported by measured price increases, an improved product mix, formulation and sourcing efficiencies, and disciplined cost management,” Syngle said.
Operating Margins Expand
The operating performance was better than expected. Earnings before interest tax depreciation and amortisation (Ebitda) grew 33.5% YoY to Rs 2,169 crore as compared to Rs 1,625 crore last year and an estimate of Rs 1,839 crore.
The Ebitda margin expanded to 20.6% which is up from 18.2% in the corresponding quarter and significantly above the estimated 18.1% for the period. This represents a year-on-year improvement of around 240 basis points.
Other income increased to Rs 241 crore from Rs 193 crore a year earlier. Meanwhile, tax expense rose to Rs 536 crore, compared with Rs 392 crore in the previous-year quarter.
Volume Growth Across Decorative
The India decorative paints business reported volume growth of 9% year-on-year and the industrial coatings segment continued to perform strongly, maintaining mid-teen growth during the period. The international business recorded healthy year-on-year growth.
Syngle said the decorative paints performance came despite an uncertain operating environment and reflected the company’s innovation-led strategy, deeper consumer engagement, and stronger service offerings.
The industrial coatings business also contributed to the strong performance, sustaining mid-teen growth during the quarter. The company said this complemented the decorative paints segment and drove broad-based growth across its coatings portfolio.
The kitchen business posted a 10.1% year-on-year increase in revenue, reaching Rs 108 crore while the bath fittings business revenue grew 4.3% YoY to Rs 84.9 crore.
Looking ahead, the company said it would remain vigilant about raw material price volatility while continuing to focus on technology, innovation, and customer-centricity.