Asian Paints Q2 Results: Volume growth at 6.8%, revenue growth beats estimate

Shares of Asian Paints

Ltd., India’s largest paint manufacturer, were trading lower on Thursday, October 29, after the company reported its September-quarter results, with net profit and EBITDA falling short of CNBC-TV18 poll estimates.

Asian Paints reported decorative business volume growth of 6.8% during the quarter, broadly in line with the CNBC-TV18 poll estimate of 6%-7%.

Net profit rose 7.6% year-on-year to ₹1,068 crore from ₹993 crore a year earlier. However, it came in below the CNBC-TV18 poll estimate of ₹1,120 crore.

Revenue increased 17% year-on-year to ₹9,976.5 crore from ₹8,531 crore in the corresponding quarter last year. Revenue exceeded the CNBC-TV18 poll estimate of ₹9,728 crore.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 3.6% year-on-year to ₹1,557 crore from ₹1,503 crore. The figure was below the CNBC-TV18 poll estimate of ₹1,640 crore.

The EBITDA margin contracted to 15.6% from 18% a year earlier, a decline of 240 basis points. The margin also fell short of the poll estimate of 16.9%.

Asian Paints declared an interim dividend of ₹5.75 per equity share with a face value of ₹1 for the financial year ending March 31, 2027.

The company has fixed Wednesday, November 4, 2026, as the record date for determining shareholder eligibility. The dividend will be paid on or after November 13, 2026.

Amit Syngle, Managing Director and CEO of Asian Paints, said the company’s international business grew 29.5%, with strong performance across all regions. The Middle East also registered robust growth despite servicing challenges arising from the ongoing geopolitical situation.

He said the operating environment this year had been marked by sharp raw material inflation and material availability constraints driven by geopolitical disruptions, with the full impact felt in Q2. The company calibrated price increases and absorbed part of the cost inflation to protect consumer demand.

With inflationary pressures showing little sign of easing, Asian Paints is implementing a further round of staggered price increases in its coatings business while intensifying cost-efficiency initiatives.

During the quarter, the company commissioned Phase 1 of its VAE manufacturing facility at Dahej, marking a milestone in its backward integration journey. Syngle said the investment would strengthen the company’s ability to offer differentiated products and improve cost competitiveness.