Asian Paints Q1 results: Net profit declines 6%, EBITDA falls 4%; margins contract by 70 basis points

Asian Paints, the country's leading paint maker, on Tuesday, July 29, reported a consolidated net profit of ₹1,100 crore in the first quarter of current financial year (Q1FY26) marking a decline of 6% from ₹1,170 crore in the same period last year. The decline in profit came on the back of subdued demand environment due to macro-economic uncertainties and onset of early monsoon.

Asian Paints' revenue from operations dipped marginally (by 0.3%) to ₹8,939 crore from ₹8,970 crore.

The company reported stable operational performance as its earnings before interest, taxes, depreciation, and amortisation (EBITDA) also known as operating profit declined 4% to 1,625 crore from ₹1,694 crore in the year-ago period.

Its margins contracted by 70 basis points to 18.18% from 18.88% in the year-ago period.

Asian Paints' domestic decorative business registered volume growth of 3.9% with revenue decline of 1.2%.

Home decor categories saw a de-growth in Q1FY’26 with pressure on household disposable incomes and international business registered a value growth on the back of growth in Asia markets, UAE and Egypt, Asian Paints said in a press release.

“The paint industry experienced a slight uptick this quarter, driven by marginally improved demand from urban centres, despite monsoons slowing the momentum in June. Our revenues for the coatings business in India were 0.2% lower than last year. Domestic Decorative paints business did relatively better compared to the earlier quarters, registering a volume growth of 3.9% and a revenue decline of 1.2%. The revenues from the Industrial Coatings business grew by 8.8%, on the back of good performance in Auto & Protective coating segments. The operating margins for the quarter were marginally lower on a year on year basis on account of higher sales and marketing investments," said Amit Syngle, Managing Director & CEO of Asian Paints.

International sales increased by 8.4% to ₹736.1 crore from ₹679 crore on the back of growth in Asian markets, UAE & Egypt. In constant currency terms, sales increased by 17.5%. PBT was ₹ 38 crore as against ₹6.5 crore in the corresponding period of previous year, Asian Paints said.

Sales for its bath fittings business declined by 5.1% to ₹88.7 crore from ₹93.4 crore, sales of kitchen business declined 2.3% to ₹98 crore and sale of white teak and weatherseal fell 32% to ₹20 crore.

"The home décor business was slow due to subdued retail consumption however the retail chain of Beautiful Homes Stores did well. On the international front, the portfolio delivered a strong performance with a revenue growth of 11.1% on a like-to-like basis (20.4% in constant currency terms), with all key markets in the Middle East and South Asia performing well," Syngle added.

Following the earnings announcement, Asian paints shares rose as much as 2.37% to hit an intraday high of ₹2,415 the stock was among the top gainers in the NIFTY50 index.