Brands
Asian Paints posts 40 per cent jump in Q1 profit as sales gather colour
Revenue rises 18 per cent as decorative paints and overseas business shine
MUMBAI: Asian Paints has started FY27 with its brightest coat yet. Riding on healthy demand for decorative paints, calibrated price hikes and tighter cost control, the company reported a 40 per cent year-on-year rise in consolidated net profit for the April-June quarter, signalling that India’s largest paintmaker is entering the new financial year with renewed momentum.
Consolidated net profit climbed to Rs 1,539.3 crore in the first quarter, compared with the year-ago period, while net sales rose 17.9 per cent to Rs 10,521.4 crore from Rs 8,924.5 crore.
The company’s core decorative paints business remained the biggest growth engine, registering 9 per cent volume growth during the quarter. Calibrated pricing actions helped convert that demand into 16.6 per cent value growth, underscoring the company’s ability to protect margins without slowing consumer appetite.
Its industrial coatings business also continued its strong run, delivering more than 16 per cent value growth, maintaining its mid-teen growth trajectory.
Asian Paints also found fresh momentum overseas. The international business reported a 27.2 per cent increase in net sales to Rs 936.5 crore, up from Rs 736.1 crore a year earlier. On a constant currency basis, sales grew 20.3 per cent, driven by strong performances in Egypt, the UAE, Oman, Nepal and Bangladesh.
Profit before tax from the international operations nearly doubled, surging 94.9 per cent to Rs 74.1 crore, with the company highlighting resilient performance in the Middle East despite geopolitical challenges in the region.
The company’s home décor portfolio delivered a mixed performance. Its kitchen business posted 10.1 per cent growth in net sales to Rs 108 crore, while its loss before tax narrowed sharply to Rs 0.3 crore from Rs 8.8 crore in the corresponding quarter last year.
However, the bath fittings business saw net sales decline 4.3 per cent to Rs 84.9 crore, with its loss before tax widening to Rs 8.8 crore from Rs 2.3 crore. Meanwhile, White Teak reported a 7.4 per cent decline in sales to Rs 18.7 crore, whereas Weatherseal recorded 11.2 per cent growth, taking revenue to Rs 16.9 crore.
Managing Director and Chief Executive Officer Amit Syngle said the company’s performance reflected sustained investments in innovation, consumer engagement and service offerings, while profitability benefited from measured pricing actions, a favourable product mix, formulation improvements, sourcing efficiencies and disciplined cost management.
Even as the company delivered a robust opening quarter, it cautioned that raw material price volatility remains a key watchpoint. Asian Paints said it will continue to focus on technology, product innovation and customer-centric initiatives as it looks to maintain its market leadership in an increasingly competitive paints industry.
