Asian Paints Q3 results: Net profit declines 5% YoY to ₹1,060 crore, revenue rises 4%; shares fall 6%

In the corresponding period of the previous fiscal year, it had clocked a profit of ₹1,110.48 crore, it said in a regulatory filing.

The company’s bottom line was impacted by one-time exceptional items of ₹157.61 crore, comprising the impact of the implementation of labour codes and impairment loss recognised on the acquisition of Obgenix Software Private Limited.

The company had a one-time expense of ₹63.74 crore towards an increase in gratuity liability by ₹52.88 crore and an increase in liability towards compensated absences by ₹10.86 crore, on the labour codes front.

Furthermore, it faced an impairment loss of ₹93.87 crore on ‘intangibles’, recognised on the acquisition of Obgenix Software Private Ltd (White Teak).

Its net profit before minority interest and exceptional items increased 7.7% YoY to ₹1,215.7 crore, the company stated.

Its revenue from operations, however, rose by 3.71% annually to ₹8,867.02 crore for the reporting quarter, compared to ₹8,549.44 crore in the December quarter of the 2024-25 fiscal year (Q3FY25).

Segment highlights

In the international business segment, Asian Paints posted a 6.3% YoY surge in its net sales to ₹869.6 crore in the December quarter of FY26, compared with ₹818 crore in the year-ago period, led by units in Sri Lanka, UAE and Ethiopia. In constant currency terms, its net sales advanced by 4.2%.

Under the home décor business segment, the bath fittings business witnessed a 4.1% annual decline in its net sales to ₹84 crore during the quarter under review, as against ₹87.6 crore in Q3FY25. Additionally, the kitchen vertical’s net sales stood at ₹105.4 crore, reflecting a 2.6% YoY jump from ₹102.8 crore. The white teak vertical saw a 12.4% annual surge to ₹29.2 crore, and its weatherseal segment clocked a net sales of ₹18.7 crore, reflecting a 58.6% annual increase.

In the industrial business segment, Asian Paints PPG Pvt. Ltd. (APPPG) logged a net sales of ₹334.7 crore for the December FY26 quarter, marking a 16.5% YoY rise from ₹287.3 crore in the year-ago period. Furthermore, PPG Asian Paints Pvt. Ltd. (PPGAP) saw a 16.9% annual growth in its net sales at ₹713.3 crore, in comparison to ₹610.1 crore.

What the CEO said

Commenting on the results, Amit Syngle, Managing Director & CEO of Asian Paints, said: “We had a third consecutive quarter of good volume growth with our India Decorative Business delivering a robust 7.9% volume growth in the quarter. The overall coatings business registered a 4.4% revenue growth for the quarter, with Decorative business revenue growth of 2.8%. This performance for the quarter reflects the sustained momentum delivered through persistent actions across our identified growth initiatives, even as the broader market faced persistent competitive intensity and subdued demand conditions.”

Syngle stated that the company intensified its brand-building efforts, launched a robust wave of retailing initiatives, and introduced a wide range of innovative product and service propositions, adding that its “disciplined” cost management, backward integration efforts, and enhanced operational efficiencies enabled it to fuel these brand investments while simultaneously improving its operating margins.

He said that the paint makers' industrial coatings segment registered “good” double-digit growth, boosting its overall coatings performance. In the same league, its international business achieved a 6.3% revenue increase, led by steady performance in key markets of the UAE, Sri Lanka, and Ethiopia.

“As the external environment remains dynamic, we continue to drive differentiated strategies, harness our structural strengths, and embrace technology to sustain momentum, respond with agility, creating long‑term value for all stakeholders,” Syngle added.

Asian Paints stock performance

Shares of Asian Paints fell as much as 5.83% to an intraday low of ₹2,546 apiece on the National Stock Exchange (NSE), after announcing its results.

The stock closed 2.80% lower at ₹2,628 per equity share on Tuesday.

Asian Paints has a total market capitalisation of ₹2.52 lakh crore, as of January 27, 2025, according to data on the NSE.