Asian Paints Q2 Results Live Updates: Margins may expand, outlook for the year key

– 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.

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Asian Paints Q2 Results Live Updates: Margins may expand, outlook for the year key