Asian Paints' consolidated net profit down by 6% in June quarter

Mumbai, July 29, 2025 – Asian Paints Ltd (NSE: ASIANPAINT) reported a 6% year-on-year fall in consolidated net profit to ₹1,099.8 crore for Q1FY26, as early monsoons and weak rural demand dampened revenue. Softer consumption trends weighed on volumes, impacting operating leverage and profit margins.

Standalone and consolidated sales declined marginally, while profitability was affected across business levels. Decorative segment growth slowed due to seasonality, while industrial and international businesses offered partial offset. PBDIT margins contracted, reflecting increased costs in sales, marketing, and input management.

Asian Paints closed at ₹2,406.10, marking a 1.97% gain from the previous close of ₹2,359.60. The stock traded between ₹2,325.00 and ₹2,418.30 during the session. Volume reached 17.43 lakh shares, with turnover at ₹415.93 crore, indicating active participation post-earnings.

Financial Performance

Consolidated and standalone performance for Q1FY26 reflected mild top-line weakness and margin compression, both sequentially and year-on-year. Profitability also declined across reporting levels, pointing to broad-based operational pressures.

• Consolidated net sales came in at ₹8,924.5 crore, down 0.2% YoY, while PAT declined 6.0% to ₹1,099.8 crore. PBDIT margin contracted to 18.2% from 18.9% YoY.
• Standalone revenue fell 1.2% YoY to ₹7,848.8 crore, and PAT dropped 7.5% to ₹1,099.6 crore. Standalone PBDIT margin narrowed to 19.4% from 20.1% a year earlier.

Segment-Wise Highlights

Decorative Business (India)

• Volume growth: 3.9%
• Revenue decline: 1.2%
• The decline was attributed to early monsoon impact and muted rural consumption.
• Margins compressed due to higher sales and marketing investments.

Industrial Coatings

• PPG Asian Paints revenue up 11.1% to ₹574.5 crore; PBT at ₹97.3 crore (▼ YoY)
• AP PPG revenue up 4.8% to ₹307.4 crore; PBT at ₹24.8 crore

International Business

• Revenue rose 8.4% to ₹736.1 crore; 17.5% in constant currency
• PBT surged to ₹38.0 crore vs ₹6.5 crore YoY, driven by growth in UAE, Egypt, and Asian markets

Home Décor

• Bath Fittings revenue declined 5.1% YoY to ₹88.7 crore, with the segment reporting a PBDIT loss of ₹1.3 crore, reflecting weak performance and cost pressures.
• Kitchen Business posted ₹98.1 crore in revenue, down 2.3% YoY. The segment swung to a PBDIT loss of ₹6.2 crore, reversing its profit position from the previous year.
• White Teak (Lighting) saw a steep 31.9% YoY decline in revenue to ₹20.2 crore, significantly dragging the overall home décor portfolio.
• Weatherseal (Windows) was the only segment to grow, with revenue rising 32.2% YoY to ₹15.2 crore, offering partial offset to losses in other units.

Key Updates & Announcements

• Final Dividend: ₹20.55 per share for FY25, paid on June 30, 2025.
• Strategic Investments:
  • ₹100 crore equity infusion into Asian Paints (Polymers) Pvt Ltd.
  • Acquired remaining 40% in White Teak, now a wholly owned subsidiary.

Management Commentary

“Despite early monsoons and weak consumer sentiment, the decorative business registered volume growth. Industrial coatings and international markets showed strong resilience. We remain confident in the long-term growth potential of the paints and home décor industry,” said Amit Syngle, MD & CEO.

Outlook

Muted demand and early monsoons weighed on margins, but volume growth in decorative paints and strong performance in international and industrial segments offered partial support. The market is gauging margin risks. Execution on cost and segment diversification will shape near-term earnings stability.

About the Company

Asian Paints is India’s largest paint and décor company, offering decorative and industrial coatings, waterproofing, and home décor products. Operating in 15 countries with 27 manufacturing units, it also has joint ventures in automotive coatings, chemicals, and white cement manufacturing.

REF: https://nsearchives.nseindia.com/corporate/ASIANPAINT_29072025140836_StockexchangeintimationFRQ1FY26.pdf

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