Asian Paints posts 7.5 percent rise in Q2 net profit

Asian Paints reported a 7.5 percent year-on-year increase in consolidated net profit to Rs 1,067.6 crore for the quarter that ended in September 2026, even though profits faced pressure from higher raw material costs and supply issues.

Revenue and Margins

Total revenue from operations jumped 16.9 percent to Rs 9,976.5 crore, boosted by growth in domestic decorative paints, industrial coatings, and international business. However, operating margins shrank as the company absorbed some input costs to protect customer demand. The profit before depreciation, interest, and tax margin dropped 202 basis points to 15.6 percent, and the net profit margin narrowed 94 basis points to 10.7 percent. The company declared an interim dividend of Rs 5.75 per share.

Business Performance

Domestic decorative paints saw a volume growth of 6.4 percent and a value growth of 14.5 percent. Overall domestic coatings registered a value growth of 16.4 percent and volume growth of 6.8 percent, led by industrial coatings value growth of 31.8 percent. International net sales grew 29.5 percent to Rs 1,095.6 crore, though international profit before tax fell 31 percent to Rs 52.7 crore due to geopolitical challenges in regions like the Middle East.

Outlook and Stock Reaction

Managing Director and CEO Amit Syngle stated that the company kept up its growth momentum despite a softer seasonal quarter and rising material inflation. Asian Paints plans to roll out another round of price hikes and focus on cost-saving steps. On Thursday afternoon, company shares traded 1.88 percent lower at Rs 2,249, giving the firm a market value of about Rs 2.16 lakh crore.

Context

Large manufacturing companies often face profit margin pressures when global raw material prices rise and geopolitical tensions disrupt supply chains. Companies must then choose between raising prices for customers or absorbing the extra costs to protect their market share. In the paints sector, steady demand for both home renovation and industrial use usually helps support overall revenue growth even during tough cost environments.