Asian Paints’ second-quarter margin narrowed to 15.6% as operating profit growth trailed sales, highlighting cost pressure at the Indian paintmaker despite gains in decorative business volumes.
For the quarter ended Sept. 30, consolidated net sales reached ₹9,953.9 crore, compared with ₹8,513.7 crore a year earlier. PBDIT — profit before depreciation, interest, tax and other income — rose to ₹1,557.1 crore from ₹1,503.4 crore. The company said its margin declined 202 basis points from the year-earlier period.
Asian Paints linked the pressure to more expensive raw materials and supply interruptions connected with geopolitical events. It said it absorbed part of the added costs to protect demand and was bringing in more staggered price increases in its coatings business. Amit Syngle, managing director and CEO of Asian Paints, said the company was introducing “a further round of staggered price increases” as inflation persisted.
The company reported 6.4% volume growth and 14.5% value growth in India’s decorative business. Across domestic coatings, volume increased 6.8% and value grew 16.4%. Asian Paints described the quarter as seasonally softer.
Financial Express and NDTV Profit reported Bloomberg consensus estimates of ₹1,141 crore for net profit and ₹1,668 crore for EBITDA, saying both measures fell short. The outlets also reported that revenue exceeded a consensus forecast of ₹9,782 crore.
NDTV Profit reported Friday that HSBC lowered its price target to ₹2,420 from ₹2,650, Jefferies cut its target to ₹3,025 from ₹3,350, and Goldman Sachs reduced its target to ₹2,375 from ₹2,725. The report said the firms retained their Hold, Buy and Sell ratings, respectively. It said analysts pointed to the burden from input expenses, tougher competition and uncertainty over the speed of a margin rebound.
Asian Paints’ calendar tentatively lists Jan. 19, 2027, for its third-quarter and nine-month results.
