Asian Paints Q4 Results: Domestic decorative volume growth at seven-quarter high, margins expand

Shares of Asian Paints Ltd., India's largest paints company reported a strong fourth quarter performance for the March quarter, on Friday, May 29, led by the domestic decorative business, whose volume growth was higher than expectations.

Asian Paints' domestic decorative paints business reported volume growth of 12.4%, higher than the CNBC-TV18 poll expectation of 9% to 10%. This is the highest volume growth reported by the company since the first quarter of financial year 2025.

For the March quarter, Asian Paints reported a 69% jump in its net profit to ₹1,185.5 crore, higher than the CNBC-TV18 poll of ₹1,060 crore. The base quarter had seen the company face an exceptional loss of ₹183 crore.

Revenue for the quarter saw a growth of 10.6% to ₹9,247 crore, from ₹8,359 crore earlier. A CNBC-TV18 poll had pegged the figure at ₹8,765 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹1,787 crore, a 24.4% growth compared to last year's figure of ₹1,436.2 crore, and also higher than the CNBC-TV18 poll estimate of ₹1,594 crore.

EBITDA margin expanded by over 200 basis points to 19.3% from 17.2% last year. The CNBC-TV18 poll had pegged the figure at 18.2%. Margins improved through cost discipline aided by material deflation and operational efficiencies, even as the company invests in long-term growth drivers.

Strong growth seen in the industrial coatings aided the overall coatings performance, enhancing the volume and value growth to 12.7% and 11% respectively.

Asian Paints' international portfolio continued to deliver resilient growth with improved profitability, despite volatility in select markets, Asian Paints said in its post-earnings statement. The home decor business continued to gain traction despite a muted performance.

"The external environment remains fluid, with the West Asia conflict contributing to near-term uncertainty in demand. However, supported by strong fundamentals and execution discipline, we remain resilient to navigate this volatility and sustain our performance," Asian Paints MD & CEO Amit Syngle said.

After the initial spurt, shares of Asian Paints are trading 1% higher at ₹2,702. The stock has risen 10% in the last one month and is still down around 2% for the year.