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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.

Good Morning!

Hello and Welcome to CNBC-TV18’s Live Coverage of Asian Paints’ Q2 results.

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