Asian Paints Q2 profit rises 7.5% to ₹1,068 crore, revenue up 17%; declares ₹5.75 interim dividend
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Asian Paints on Thursday reported a 7.5% year-on-year (YoY) increase in consolidated net profit after minority interest to ₹1,067.6 crore for the second quarter of FY27, compared with ₹993.6 crore in the corresponding quarter last year. The paint maker also declared an interim dividend of ₹5.75 per share.
Consolidated net sales increased 16.9% to ₹9,953.9 crore in the September quarter from ₹8,513.7 crore a year earlier. However, operating margins came under pressure amid higher raw material costs and supply constraints.
PBDIT (profit before depreciation, interest, tax and other income) rose 3.6% to ₹1,557.1 crore, while the PBDIT margin declined to 15.6% from 17.7% in the year-ago quarter. Profit before tax increased 6.2% to ₹1,477.8 crore.
On a standalone basis, net sales grew 14.8% to ₹8,423.6 crore, while profit increased 14.6%. The standalone PBDIT margin fell 144 basis points to 17.1%.
For the first half of FY27, consolidated net sales increased 17.4% to ₹20,475.3 crore, while net profit after minority interest rose 24.5% to ₹2,606.9 crore. PBDIT increased 19.1% to ₹3,725.8 crore, with margins improving to 18.2% from 17.9% a year earlier.
Domestic coatings business grows 16.4%
Asian Paints’ domestic coatings business recorded value growth of 16.4% during the quarter, supported by continued strength in industrial coatings. The decorative business in India reported volume growth of 6.4% and value growth of 14.5%.
The industrial coatings business delivered value growth of 31.8%, according to the company.
International business net sales rose 29.5% to ₹1,095.6 crore. In constant-currency terms, growth stood at 23.7%, with strong performance across all regions. However, profit before tax for the international business declined 31% to ₹52.7 crore.
In home décor, bath fittings revenue increased 18.5% to ₹94 crore, with the business reporting a profit before tax of ₹8.7 crore against a loss of ₹4 crore a year earlier. Kitchen revenue grew 13% to ₹110.3 crore, although its loss before tax widened to ₹7.9 crore from ₹3.6 crore.
Raw material inflation weighs on margins
Commenting on the results, Amit Syngle, Managing Director and CEO of Asian Paints, said the company delivered a resilient performance in a seasonally softer quarter, sustaining the momentum of recent quarters.
He said sharp raw material inflation and material availability constraints driven by geopolitical disruptions had affected the operating environment, with the full impact becoming evident in the September quarter.
The company calibrated price increases and absorbed part of the cost inflation to protect consumer demand. With inflationary pressures showing little sign of easing, Asian Paints is implementing another round of staggered price increases in its decorative coatings business while stepping up cost-efficiency initiatives.
During the quarter, the company also commissioned Phase 1 of its vinyl acetate ethylene (VAE) manufacturing facility at Dahej, Gujarat. The investment is expected to strengthen backward integration, improve cost competitiveness and support product innovation.