Shares of Asian Paints surged over 4% to Rs 2,895.90 in Thursday’s morning session after India’s largest paint manufacturer reported a strong second-quarter performance, surpassing analyst expectations across key metrics.
The company’s net profit rose 43% year-on-year to Rs 993.6 crore in the September quarter (Q2 FY26), driven by steady volume growth in its decorative paints business and improved operational efficiencies. Asian Paints’ revenue from operations climbed 6.3% YoY to Rs 8,531.3 crore, compared to Rs 8,028 crore a year ago.
The company’s domestic decorative paints division recorded 10.9% volume growth, while international sales rose 9.9% to Rs 846 crore, led by markets in South Asia, the Middle East, and Africa. In constant currency terms, international sales increased 10.6% YoY.
EBITDA grew 21.3% YoY to Rs 1,503 crore, while EBITDA margins expanded to 17.6% from 15.2% a year earlier, reflecting an improvement of 240 basis points. Profit before interest, depreciation, and tax increased 20.5% to Rs 1,740.3 crore.
Management Commentary
Amit Syngle, Managing Director and CEO of Asian Paints, called it a “quarter of focused innovation and strong execution.”
“We saw an improvement in our domestic decorative business with a double-digit volume growth of 10.9% and a 6% increase in value, despite challenges from an extensive monsoon,” he said.
Syngle highlighted that the company’s regional activations, marketing investments, and brand-building initiatives helped generate demand across both urban and rural areas. He added that growth was further supported by strong performance in automotive and industrial protective coatings, leading to a 6.7% value growth in the domestic coatings segment.
“In our international business, we delivered double-digit revenue growth, while the home décor segment is navigating headwinds. However, our Beautiful Homes stores have shown promising traction,” he added.
Syngle also noted that cost-efficiency initiatives have aided margin improvement even as the company continues to invest heavily in brand and retail expansion.
Brokerage Views
Following the Q2 results, several brokerages revised their outlook on the stock:
Jefferies raised its target price on Asian Paints to Rs 3,300 from Rs 2,900 earlier, maintaining a “Buy” rating. The brokerage cited domestic volume growth, market share gains, and strong brand positioning as key positives.
“While competition remains intense, paints is a business of long-term relationships, which keeps Asian Paints in good stead,” Jefferies said.
HSBC also upgraded its target price to Rs 3,050 (from Rs 2,800 earlier) and reiterated its “Buy” rating. It noted that the core retail decorative business recovery led to a margin surprise, which may continue in coming quarters. HSBC added that its FY27 EPS estimate is now 10% above consensus.
However, not all brokerages shared the bullish view. Citi maintained its “Sell” rating, increasing its target price slightly to Rs 2,250 from Rs 2,150. The firm said that while H2 growth may improve, much of it will stem from a low base rather than easing competition.
Similarly, Goldman Sachs retained a “Sell” call with a target price of Rs 2,500, warning that sustaining momentum in the second half of FY26 could be challenging. It expects EBITDA margins to stay in the 18–20% range amid elevated competition.
Overall, out of 38 analysts covering Asian Paints, 18 maintain a “Sell” rating, 13 recommend “Buy”, and seven have a “Hold” stance, reflecting a divergence of views amid intense industry competition.
Stock Performance
At 9:17 AM, shares of Asian Paints were trading 4.55% higher at Rs 2,895.90 on NSE, compared to the previous close of Rs 2,769.80. The stock outperformed the broader Nifty 50 index in early trade and remains among the top gainers in the FMCG space today.
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