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Thank you for tuning in to the Asian Paints earnings coverage.

We’ll be back tomorrow with more management commentary and what brokerages had to say after these results.

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Asian Paints shares ended over 6.5% higher on Wednesday after reporting results just minutes before markets closing.

The company’s domestic decorative business volume growth increased by 10.9% from last year, higher than the CNBC-TV18 poll of 4% to 5% growth.

Other parameters also surpassed expectations.

We saw an improvement in our domestic decorative business with a double digit volume growth of 10.9% and a 6% increase in value, despite the challenges posed by an extensive and prolonged monsoon. This growth was driven by our ability to generate demand across urban and rural areas through various regional activations and intense marketing / brand building measures.

– International business grew by 9.9% from last year

– On a constant currency basis, the international portfolio delivered revenue growth of 10.6% for the quarter

– Improved consumer sentiment with supportive policy actions, aided by early festive season

– Overcame impact of extended monsoon even in September

– Registered broad-based growth across urban and rural centres

– All product categories contributed to growth

– Steady double-digit growth seen in the industrial business.

– Net profit at ₹1,018 crore from CNBC-TV18 poll of ₹870 crore

– Revenue of ₹8,531 crore, higher than CNBC-TV18 poll of ₹8,105 crore

– EBITDA at ₹1,503 crore also higher than the CNBC-TV18 poll of ₹1,325 crore

– EBITDA margin at 17.6%, higher than the CNBC-TV18 poll of 16.3%

Asian Paints has reported a volume growth of 10.9% for the domestic decorative business.

The number is well above the CNBC-TV18 poll figure of 4% to 5%.

– Net profit up 47% from last year to ₹1,018 crore

– Revenue up 6.3% from last year at ₹8,531 crore

– EBITDA up 21.3% from last year to ₹1,503 crore

– EBITDA margin at 17.6% from 15.4% from last year

– Stock at the day’s high, surging 3% to ₹2,735.5

Shares of Asian Paints have given up gains ahead of the results announcement.

The stock is trading 0.3% higher at ₹2,664.4.

– Heavy & Extended Monsoon Season

– Sustained competitive intensity

– Increase network expansion & brand building expenses impacted the quarterly performance

– Dealer incentives have achieved broad parity across players – incrementally positive in terms of competitive intensity

– Birla Opus Paints’ revenue target of ₹10,000 crore implies a high throughput per tinting machine – a big ask

– Remain optimistic about underlying industry growth improving in H2FY26

– Asian Paints – Buy, Price Target Raised to ₹2,900 from ₹2,700

– Berger Paints – Buy, Price Target Raised to ₹640 from ₹620

Worst of competitive intensity behind

Birla Opus has stabilized at ~900-1050 Cr quarterly run-rate

Opus can’t discount further if they have to be EBITDA positive

– Revenue may increase by 1% from last year to ₹8,105 crore

– EBITDA may increase by 7% year-on-year to ₹1,325 crore

– EBITDA margin may expand to 16.3% from 15.4% last year

– Net profit may increase by 25.5% to ₹870 crore

– Numbers are as per a CNBC-TV18 poll

– Competitive intensity in Indian decorative paints segment continues to remain high.

– Birla Opus’s management reiterated its FY28 target of Rs100bn sales with a positive Ebitda for Opus

– Aspires to be number two decorative paints player in India with a focus on achieving a store space share that equals co’s current decorative paints capacity share of 24%

– CLSA has the lowest price target on Asian Paints at ₹1,927

JPMorgan had upgraded Asian Paints to “neutral” and raised its price target to ₹2,500 per share.

The stock is trading above JPMorgan’s price target

The brokerage said that there have been early signs of volume growth revival, and margins may bottom in FY25.

– Turn positive on the sector after competition headwinds behind

– Birla Opus’ ₹10,000 Crore deployed already

– Stocks have seen a correction

– Upgrade Asian Paints to Buy with a price target of ₹3,100

Despite multiple upgrades coming in for Asian Paints recently, majority of the analysts tracking the stock have a “sell” rating on it.

18 out of the 38 analysts covering it have a “sell” rating, while only 11 of those have a “buy” recommendation.

Nine other analysts have a “hold” rating.

Shares of Asian Paints have opened with modest losses on Wednesday ahead of the results announcement.

The stock is trading 0.3% lower in early trading at ₹2,650.

The paints sector has remained in focus since the arrival of Birla Opus on the scene.

Over the weekend, Birla Opus CEO Rakshit Hargave announced his resignation and a move to Britannia, which led to a positive move in most of the listed paint incumbents, including Asian Paints.

Shares of Asian Paints have risen 13.5% in the last one month.

It is due to this move that the stock had turned positive on a year-to-date basis.

For 2025, Asian Paints shares are up 15% so far.

– Demand sentiment has improved

– Target high single digit volume growth in FY26

– Value growth in FY26 likely to be mid-single digits

– Comfortable with 18-20% margin guidance for FY26

A CNBC-TV18 poll is expecting volume growth to be between 4% and 5% this time around compared to the same quarter last year. It had reported volume growth of 3.9% during the June quarter.

Asian Paints’ EBITDA margins are likely to expand by nearly 90 basis points, while its net profit may grow 25% from last year to ₹870 crore, as per the CNBC-TV18 poll.

According to a CNBC-TV18 poll, Asian Paints’ revenue is likely to remain flat, growing only 1% from last year to ₹8,105 crore.

Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) is likely to grow by 7% from last year to ₹1,325 crore, according to the poll.

The street is anticipating a weak quarter for Asian Paints due to heavy and extended monsoons, a weak product mix, high competitive intensity, and increased cost of sales.

India’s largest paints company is likely to report a weak quarter this time around, according to street expectations.

More details in subsequent posts.

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