Asian Paints Q1 result: Profit jumps 40% to ₹1,559 crore on strong volume growth, price hikes

Asian Paints on Wednesday clocked a 39.6% year-on-year (YoY) rise in consolidated net profit to ₹1,559.45 crore for the first quarter of FY27, driven by healthy volume growth, calibrated price increases and improved operating efficiencies. 

The paints maker had posted a consolidated net profit of ₹1,117 crore in the corresponding quarter of the previous financial year, according to a regulatory filing. 

Revenue from operations rose 18% to ₹10,541.94 crore during the April-June quarter, compared with ₹8,938.55 crore a year earlier. Total income increased 18.08% year-on-year to ₹10,782.79 crore, while total expenses climbed 14% to ₹8,725.20 crore. 

The company's India decorative business delivered 9% volume growth and 16.6% value growth during the quarter, reflecting steady demand and the impact of calibrated price increases. 

Asian Paints said its industrial coatings business maintained a "mid-teen growth momentum", complementing the decorative paints segment and supporting broad-based growth across its coatings portfolio. 

Its international business also posted a strong performance, with net sales rising 27.2%, led by operations in Egypt, the UAE, Oman, Nepal, and Bangladesh. 

Managing Director and CEO Amit Syngle said the company delivered strong profitability through measured price increases, an improved product mix, formulation and sourcing efficiencies, and disciplined cost management. "We delivered strong profitability, supported by measured price increases, better mix, formulation and sourcing efficiencies, and disciplined cost management. With volatility in raw material prices, we will stay agile and continue to focus on technology innovation and customer centricity to maintain our saliency in the market," Syngle added. 

The company also announced progress on its integrated Vinyl Acetate Monomer (VAM)-Vinyl Acetate Ethylene (VAE) manufacturing ecosystem, with the first phase scheduled for commissioning in the second quarter of FY27. The facility will have an annual production capacity of 100,000 metric tonnes of VAM and 150,000 metric tonnes of VAE. 

Despite the strong quarterly performance, Asian Paints cautioned that renewed geopolitical tensions have increased volatility in raw material costs and supply chain logistics, making the near-term operating environment uncertain. 

To navigate the challenging backdrop, the company said it will focus on sustaining growth through stronger consumer engagement, emotional marketing, and technology-led innovation. Its priorities for the second quarter include faster market execution, higher investments in innovation and brand building, and continued cost-efficiency measures to protect margins and demand momentum. 

Shares of Asian Paints ended 0.82% higher at ₹2,759.15 apiece on the BSE on Wednesday.