Asian Paints share price tanks 6.5% post Q3 earnings; what investors need to know

The stock tumbled as much as 6.55% to hit a low of ₹2,451 on the NSE.

With today's fall (taking into consideration the day's low of ₹2,451), the stock has tumbled over 9.3%.

The company on Tuesday reported a decline of 4.83% in consolidated net profit at ₹1,073.92 crore in the December quarter of FY26 on a year-on-year basis on account of exceptional items, such as the implementation of the new labour code and impairment of loss in a subsidiary.

The company had logged a net profit of ₹1,128.43 crore during the October-December period a year ago, according to a regulatory filing by Asian Paints.

Its revenue from operations rose 3.71% to ₹8,867.02 crore in the December quarter of FY26 from ₹8,549.44 crore in the corresponding period a year ago.

Asian Paints had reported exceptional expenses of ₹157.61 crore. It has recognised a one-time expense of ₹63.74 crore towards an increase in the gratuity liability and an impairment loss of ₹93.87 crore on 'Intangibles', recognised on the acquisition of White Teak. Its profit before exceptional items and tax was up 8.46% to ₹1,646.70 crore in the December quarter.

Asian Paints' total expenses were at ₹7,447.07 crore in the December quarter, up 3.12% year-on-year.

What HSBC and other analysts say on Asian Paints post Q3 numbers

Analysts at HSBC note that Q3 FY26 saw disappointing volume and revenue growth, and relatively weaker retail demand trends could persist for longer.

Margin performance was strong but largely in the base for FY26e, with risks for FY27e skewed to the downside.

CLSA said that Asian Paints reported a 3.7% consolidated revenue growth, about 2% below their forecast. Standalone volume growth of 7.9% (on a negative base) was in line with an earlier festive season.

CLSA noted that the company guided for mid-single-digit sales growth near-term and high single-digit volume growth.

Its gross margin was much better than expected, aided by softer commodity costs and some operating leverage.

CLSA said that it has cut FY26-28 earnings estimates 0-7%, primarily to account for persistence in the gap in revenue growth and volume growth.