Asian Paints Q2 net profit rises 7.5% to Rs 1,068 cr, revenue jumps 17%; margins shrink amid raw material inflation

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Asian Paints Ltd on Thursday reported a 7.5 percent year-on-year increase in consolidated net profit after minority interest to Rs 1,067.6 crore for the quarter ended September 2026 (Q2 FY27), even as profitability came under pressure from rising raw material costs and supply constraints.

Asian Paints' revenue from operations rose 16.9 percent year-on-year to Rs 9,976.5 crore, supported by growth across its domestic decorative and industrial coatings businesses as well as international operations.

However, operating margins contracted during the quarter as the company absorbed part of the increase in input costs to protect consumer demand. Its profit before depreciation, interest and tax (PBDIT) margin declined 202 basis points year-on-year to 15.6 percent, while the net profit margin narrowed 94 basis points to 10.7 percent.

Asian Paints also announced an interim dividend of Rs 5.75 per share, equivalent to 575 percent of the face value.

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Domestic decorative, industrial coatings businesses register growth

The company's domestic decorative paints business recorded volume growth of 6.4 percent and value growth of 14.5 percent during the July-September quarter. The overall domestic coatings business registered value growth of 16.4 percent and volume growth of 6.8 percent, supported by strong performance in industrial coatings, where value growth stood at 31.8 percent.

International operations also delivered strong sales growth. Net sales from the international business increased 29.5 percent year-on-year to Rs 1,095.6 crore from Rs 846 crore. In constant currency terms, revenue grew 23.7 percent. However, profit before tax from international operations declined 31 percent to Rs 52.7 crore despite the increase in revenue.

The company said its international business recorded growth across all regions, including the Middle East, where operations faced servicing challenges arising from geopolitical developments.

Asian Paints plans further price increases

Asian Paints Managing Director and CEO Amit Syngle said the company maintained its growth momentum despite the September quarter being seasonally softer. "The operating environment this year has been marked by sharp raw material inflation and material availability constraints driven by geopolitical disruptions, the full impact of which was felt in Q2," Syngle said.

He added that the company had calibrated price increases and absorbed part of the cost inflation to protect consumer demand, resulting in standalone EBITDA margins of 17.1 percent. With inflationary pressures showing little sign of easing, Asian Paints is implementing another round of staggered price increases in its coatings business while intensifying cost-efficiency initiatives.

Asian Paints shares fall nearly 2%

Asian Paints shares were trading 1.88 percent lower at Rs 2,249 apiece in afternoon trade on Thursday, valuing the company at approximately Rs 2.16 lakh crore. The stock has declined 18.6 percent so far in 2026, underperforming the benchmark Nifty 50 index, which has fallen 12.4 percent during the same period.