Asian Paints reported a mixed set of financial results for the third quarter, with profitability coming in below market expectations even as operating performance remained resilient amid a subdued demand environment.
The company posted a consolidated net profit of ₹1,074 crore for Q3, missing the CNBC-TV18 poll estimate of ₹1,219 crore. On a year-on-year basis, net profit declined 4.8% compared to ₹1,128.4 crore in the corresponding quarter last year.
Revenue from operations stood at ₹8,867 crore, marginally below the street estimate of ₹9,016 crore but reflecting a 3.7% year-on-year growth over ₹8,549.4 crore reported in Q3 last year.
At the operating level, performance remained steady. EBITDA for the quarter rose 8.8% year-on-year to ₹1,781 crore, surpassing the CNBC-TV18 poll estimate of ₹1,750 crore. Improved cost efficiencies and internal initiatives supported profitability, resulting in an EBITDA margin of 20.1%, higher than both the estimated 19.5% and last year’s margin of 19.1%.
Asian Paints reported a one-time exceptional loss of ₹158 crore during the quarter. Additionally, the group recognised a one-time expense of ₹63.74 crore related to an increase in gratuity liability following the implementation of new labour code requirements. These exceptional charges weighed on reported net profit for the period.
In its core domestic decorative paints business, India volume growth came in at 7.9%, slightly below the market expectation range of 8–9%.
