Asian Paints Reports 7.5% Profit Growth in Q2 FY27

Asian Paints Ltd has reported a consolidated net profit of Rs 1,067.6 crore for the quarter ending September 2026, marking a year-on-year increase of 7.5%. This growth comes amid challenges posed by escalating raw material costs and supply chain disruptions that have pressured profitability.

The company's revenue from operations surged by 16.9% compared to the previous year, reaching Rs 9,976.5 crore. This boost was driven by robust growth in both domestic decorative and industrial coatings sectors, alongside strong performance in international markets. However, the operating margins faced contraction as the company opted to absorb some of the rising input costs to maintain consumer demand.

In terms of margins, Asian Paints experienced a decline in its profit before depreciation, interest, and tax (PBDIT) margin, which fell by 202 basis points to 15.6%. The net profit margin also narrowed by 94 basis points to 10.7%. The company declared an interim dividend of Rs 5.75 per share, translating to 575% of the face value, reflecting its commitment to returning value to shareholders.

The domestic decorative paints segment reported a volume increase of 6.4% and a value growth of 14.5% during the July-September quarter. The overall domestic coatings business saw a value growth of 16.4% and a volume growth of 6.8%, significantly bolstered by a 31.8% increase in industrial coatings. Internationally, net sales rose by 29.5% year-on-year to Rs 1,095.6 crore, although profit before tax from these operations fell by 31% to Rs 52.7 crore.

Looking ahead, Asian Paints is implementing additional staggered price increases in response to ongoing inflationary pressures while enhancing cost-efficiency measures. The company's shares were down 1.88% to Rs 2,249 during Thursday's trading session, reflecting a broader trend as the stock has decreased by 18.6% in 2026, underperforming the Nifty 50 index's 12.4% decline.