Asian Paints Skyrockets to New High! 🚀 Stellar Q2 Results Fuel Massive Investor Excitement!

Consumer Products

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Updated on 13 Nov 2025, 08:55 am

Asian Paints Limited's stock price climbed 3% to a fresh 52-week high of ₹2,897.10 on Thursday, buoyed by robust performance in the September quarter (Q2FY26). The decorative paints segment witnessed a significant rebound, posting double-digit volume growth of 10.9% year-on-year, a welcome recovery after four preceding quarters of slower growth. Value growth remained healthy at 6%, surpassing analyst forecasts, driven by factors like a low base, an early festive season kick-off, and superior execution.

In contrast, competitor Berger Paints India reported lower decorative paint volume growth of 8.8% and only 1.1% value growth, with consolidated revenue up a mere 1.9%. Asian Paints maintained its premiumization strategy, increasing ad spend on micro-regional campaigns, leveraging its strong brand recall and extensive distribution network.

Consolidated revenue for Asian Paints increased by 6.3% year-on-year to ₹8,531 crore, with contributions from decorative, industrial, and international businesses. Margins were particularly strong, exceeding estimates. Gross margins expanded by 242 basis points (bps) to 43.2%, supported by softening input costs and operational efficiencies. Earnings Before Interest, Taxes, Depreciation, and Amortization (Ebitda) margin improved by 220bps to 17.6%, helping to offset recent profitability pressures from heightened competition. The company reaffirmed its Ebitda margin guidance of 18-20% for FY26.

Looking ahead, Asian Paints anticipates mid-single-digit value growth and high-single-digit volume growth for FY26. While raw material prices are expected to be stable, geopolitical risks and currency fluctuations could increase input costs.

Impact: This news is highly positive for Asian Paints and the broader paints sector, indicating strong consumer demand recovery and effective company strategy. It can boost investor confidence in the sector. Rating: 8/10

Difficult Terms: * Ebitda: Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a measure of a company's operating performance, indicating profitability before accounting for financing, tax, and non-cash charges. * bps (basis points): A basis point is one-hundredth of a percentage point. 100 bps equals 1%. So, a 242 bps expansion means a 2.42% increase.