Asian Paints shares hit 52-week high on impressive Q2 numbers; Jefferies says 'the king is back'

The stock advanced as much as 4.59% to hit its 52-week high level of ₹2,897.10 on the NSE.

With today's rally, the stock has gained nearly 10% in five sessions.

The paint major on Wednesday reported an increase of 46.8% in consolidated net profit at ₹1,018.23 crore in the September quarter of FY26.

The company had logged a net profit of ₹693.66 crore during the July-September period a year ago, according to a regulatory filing by Asian Paints.

Its revenue from sales was up 6.38% to ₹8,513.70 crore in the September quarter of FY26 against ₹8,003.02 crore recorded in the corresponding period a year ago.

Asian Paints' total expenses were at ₹7,376.69 crore in the September quarter, up 4% year on year.

The company's decorative business registered a volume growth of 10.9% with a revenue growth of 6% in the second quarter.

This was led by factors such as improved consumer sentiments aided by the early festive season and registered broad-based growth across urban and rural centres, said an earnings statement from Asian Paints.

However, in the home décor business, sales of the bath fitting business fell by 4.7% to ₹79.3 crore, and the kitchen business declined 7.2% to ₹97.7 crore.

Sales of white teak and weatherseal products decreased by 15.2% to ₹26.4 crore in Q2 FY26.

In the industrial segments, Asian Paints had a "steady double-digit growth".

Its international sales increased by 9.9% annually to ₹846.0 crore in the quarter under review.

"In constant currency (CC) terms, sales increased by 10.6%. Profit before exceptional items and tax in Q2 FY26 was Rs 76.4 crore as against Rs 34.7 crore in the corresponding period of the previous year," it said.

Total income, which includes revenue from other sources, was at Rs 8,729.91 crore in the second quarter of FY26, up 6.44 per cent annually.

On a standalone basis, which mainly includes domestic numbers, Asian Paints' revenue from sales was 5.75% higher at Rs 7,335.85 crore.

In the first half of FY26, the total consolidated income of Asian Paints was at Rs 17,861.25 crore, up 3.08%.

Asian Paints Q2: What CEO said

Commenting on the results, Managing Director & CEO Amit Syngle said: "We saw an improvement in our domestic decorative business with a double-digit volume growth of 10.9% and a 6% increase in value, despite the challenges posed by an extensive and prolonged monsoon."

"This growth was driven by our ability to generate demand across urban and rural areas through various regional activations and intense marketing /brand-building measures," the CEO said.

Asian Paints Q2: Interim dividend

In a separate filing, Asian Paints informed that its board, in a meeting held on Wednesday, approved the payment of an interim dividend of ₹4.50 per equity share of face value ₹1 each for the financial year ending March 31, 2026.

The record date for the interim dividend has been fixed as Tuesday, November 18, 2025, and the dividend will be paid to the shareholders on or after Thursday, November 27, 2025.

Asian Paints Q2 Results: What analysts say

Some leading analysts, as per news reports, are positive on the company following a strong set of numbers in Q2.

HSBC, according to news reports, is also bullish on Asian Paints. The investment firm said that the company's core retail decorative business recovery led to a margin surprise, which should continue. "FY27 EPS is 10% above estimates," it added.

However, investment firms Investec and Citi remain skeptical.

Citi noted that growth and margin improvement in the second half will largely stem from a low base rather than easing competition.

Investec, while acknowledging the "sharp beat across metrics," also remained cautious, citing rich valuations and limited margin upside beyond FY26 levels.