Asian Paints Q1 FY26 Results: At Rs 8,940 crore, revenue misses Street estimates; margin shrinks by 70 bps

Asian Paints Q1 FY26 Results: Mumbai-headquartered Asian Paints on Tuesday reported a consolidated net profit of Rs 1,099.8 crore for the quarter ended June 30, a 6.0 per cent decline on a year-on-year basis. The Asian Paints stock, however, jumped moments after the earnings announcement. 

The paint manufacturer’s June-quarter revenue stood at Rs 8,924.5 crore, as against Rs 8,943.2 crore a year ago, according to a regulatory filing.

The bottom line fell short of analysts’ expectations.

Asian Paints Q1 Results | Top and bottom lines vs estimates 

According to Zee Business research, Asian Paints was estimated to register a net profit of Rs Rs 1,131 crore with revenue of Rs 9,059 crore. 

Asian Paints’ margin–a key measure of a business’s profitability–came in at 18.2 per cent for the June quarter, lower than 18.9 per cent a year ago. 

Analysts had pegged the paintmaker’s margin for the June quarter at 18.5 per cent.

The company said volumes in its domestic decorative business grew 3.9 per cent but revenue declined 1.2 per cent, on account of a subdued demand environment due to macroeconomic uncertainties and early monsoon rains, and a shift in mix. 

Its home decor segment saw de-growth in the June quarter with pressure on household disposable incomes, the company noted. 

“The paint industry experienced a slight uptick this quarter, driven by marginally improved demand from urban centres, despite monsoons slowing the momentum in June. Our revenues for the coatings business in India were 0.2 per cent lower than last year. The domestic decorative paints business did relatively better compared to the earlier quarters… Revenues from the Industrial Coatings business grew by 8.8 per cent, on the back of good performance in auto and protective coating segments,” said Amit Syngle, Managing Director and CEO, Asian Paints.

Syngle said the company’s operating margin was marginally lower on a year-on-year basis on account of higher sales and marketing investments.

He said the company is “confident in the long-term growth potential of the home decor and paints industry”. 

Revenue from Asian Paints’ international business rose 8.4 per cent to Rs 736.1 crore, driven by growth in Asia, the UAE and Egypt.

Asian Paints shares

The Asian Paints stock–traded with the symbol ASIANPAINT on bourses BSE and NSE–gained by as much as Rs 49, or 2.1 per cent, to Rs 2,407.9 apiece on BSE.