Asian Paints' Q2 Triumph: Profit Soars 43%, Defies Monsoon & Wall Street!

Consumer Products

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Updated on 12 Nov 2025, 02:32 pm

Asian Paints announced a strong financial performance for the second quarter of FY26, reporting a consolidated net profit of Rs 994 crore, marking a significant 43% increase compared to the same period last year. This profit figure surpassed the street's estimate of Rs 895 crore. The company's revenue from operations grew by 6.3% year-on-year to Rs 8,513 crore, also ahead of the projected Rs 8,157 crore.

Driving this growth was a double-digit volume increase of 10.9% in the domestic decorative paint segment, which achieved a 6% value growth despite challenges from an extensive monsoon. The automotive and industrial protective coatings segments also contributed positively, leading to an overall 6.7% value growth in the domestic coatings business. The international business reported a healthy 9.9% growth.

Furthermore, Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) saw a substantial rise of 21.3% to Rs 1,503 crore, beating the consensus estimate of Rs 1,341 crore. EBITDA margins expanded by 220 basis points to 17.6% from 15.4%, a result of the company's strategic focus on cost efficiencies.

Impact: This strong financial report, characterized by profits and revenues beating market expectations and significant year-on-year growth across key segments, indicates robust operational efficiency and demand resilience. It enhances investor confidence in Asian Paints' business model and its ability to navigate competitive market conditions, potentially leading to a positive impact on its stock performance and the broader paints sector. Rating: 8/10

Definitions: Consolidated Net Profit: The total profit of a company, including all its subsidiaries, after deducting all expenses and taxes. Revenue from Operations: The total income generated from the company's core business activities. Street Estimates: Forecasts or predictions made by financial analysts regarding a company's future financial performance. Decorative Paints: Paints used for aesthetic appeal and protection of surfaces in homes and buildings. Automotive Paints: Specialized coatings designed for vehicles. Industrial Paints: High-performance coatings for industrial machinery, infrastructure, and manufactured goods. Extensive and Prolonged Monsoon: A period of unusually long and heavy rainfall, which can impact construction and painting activities. Double-digit Volume Growth: An increase of 10% or more in the number of units sold. Value Growth: An increase in the monetary worth of sales, driven by volume, price, or both. EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation): A measure of a company's operating performance before accounting for non-operating expenses and non-cash charges. Consensus Estimate: The average forecast provided by financial analysts. Basis Points: A unit of measure equal to one-hundredth of a percentage point (0.01%). Cost Efficiencies: Strategies implemented by a company to reduce operational costs while maintaining output quality. Competitive Intensity: The level of rivalry among companies within the same industry. Constant Currency Basis: Financial results adjusted to remove the effect of foreign exchange rate fluctuations, showing the true operational performance.