Asian Paints Soars: Jefferies Declares 'The King is Back', Hikes Target 24% on Stellar Q2 Results!

Consumer Products

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Updated on 13 Nov 2025, 06:20 am

Asian Paints announced robust Q2 FY26 financial results, with net profit soaring 43% year-on-year to Rs 994 crore. Revenue from operations increased by 6.3% to Rs 8,531 crore, driven by a strong 10.9% volume growth in its domestic decorative paints business. The company also declared an interim dividend of Rs 4.5 per equity share.

**Impact** This strong earnings performance has significantly boosted investor confidence and the stock price, indicating positive sentiment towards the company. Rating: 8/10

Leading international brokerage Jefferies has reaffirmed its 'Buy' rating on Asian Paints and dramatically increased its target price to Rs 3,300 from Rs 2,900, representing a potential 24% upside. Jefferies expressed strong optimism, stating 'The King is Back' in their report. They anticipate stable input prices, guiding for EBITDA margins between 18-20% and expecting MSD value growth for FY26 with a volume-value gap of 4-5%.

Motilal Oswal, another prominent domestic brokerage, holds a 'Neutral' rating but has also raised its target price for Asian Paints to Rs 3,000, suggesting an 8% potential upside. Motilal Oswal believes the company is well-positioned to sustain steady growth and maintain its market leadership as the demand environment stabilizes and disruptions subside. They have increased their EPS estimates for FY26 and FY27 by 5%.

The company noted a revival in demand in September-October after subdued Q2 performance due to monsoons, with further improvements expected from the festive and wedding season.

**Difficult Terms** * **YoY (Year-on-Year)**: A comparison of financial data from one period to the same period in the previous year. * **EBITDA**: Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a measure of a company's operating performance. * **MSD value growth**: Management's expected growth in 'Market Share Driven' value. * **Volume-value gap**: The difference between the growth in the quantity of products sold (volume) and the growth in revenue generated (value). * **EPS (Earnings Per Share)**: The portion of a company's profit allocated to each outstanding share of common stock.