Asian Paints’ Q1 Profit Drops by 6.2%, Revenue Also Declines Slightly

Asian Paints reported a fall in its profit for the first quarter (Q1) of FY26, with a net profit of ₹1,117.05 crore, which is 6.24% lower than the ₹1,186.79 crore profit it made during the same period last year.

The company also reported a slight drop in its revenue, which decreased by 0.34% year-on-year (YoY) to ₹8,938.55 crore from ₹8,969.73 crore, according to its stock exchange filing.

Domestic Business Performance

The decorative paints business in India saw a 3.9% growth in volume, but the revenue from this segment went down by 1.2%.
Asian Paints blamed this drop on several factors:

• Lower demand due to economic uncertainty.
• An early start to the monsoon season.
• A change in the mix of products sold.

The home décor segment also faced challenges, as rising costs put pressure on household budgets. However, the company’s Beautiful Homes Stores continued to perform well despite this.

International Business Growth

Internationally, Asian Paints saw a value growth of 8.4%, driven by strong sales in Asian markets, the UAE, and Egypt.

On a like-for-like basis:

• Revenue rose 11.1%, or
• 20.4% when adjusted for currency fluctuations.

Most major markets in the Middle East and South Asia contributed to this strong growth.

CEO’s Remarks

Amit Syngle, Managing Director and CEO of Asian Paints, said that while there was a slight rise in demand in cities earlier in the quarter, the monsoon slowed business in June.

The company’s industrial coatings segment performed well, showing 8.8% growth YoY, especially in the auto and protective coatings categories.

However, profit margins dropped slightly because of higher spending on sales and marketing.

Despite the current slowdown, Syngle said the company is optimistic about the long-term future of the paint and home décor markets. He added that the company will continue investing in innovation and brand building to overcome current challenges.

Share Market Performance

On Tuesday, Asian Paints’ stock:

• Opened at ₹2,359
• Hit a high of ₹2,418
• Touched a low of ₹2,326.55
  It eventually closed at ₹2,406.10, up ₹46.50 or 1.97% on the Bombay Stock Exchange (BSE).