Asian Paints raised prices 12 per cent amid West Asia cost pressures

MUMBAI: When costs refuse to stay within the lines, even the paintbrush has to redraw the price tag. Asian Paints increased prices by around 12 per cent over the past year as soaring raw material costs, fuelled by renewed tensions in West Asia, squeezed margins, while signalling it would continue to tread carefully to avoid dampening consumer demand.

Addressing shareholders at the company’s 80th Annual General Meeting, Chairman R. Seshasayee said the spike in crude oil-linked input costs following the escalation of the West Asia conflict left the country’s largest paint maker with little choice but to pass on part of the burden to consumers.

“The recent escalation in West Asia has created significant inflationary pressures in raw materials, particularly through crude oil-linked inputs. In response, we have implemented measured price increases of approximately 12 per cent to mitigate these headwinds,” he said.

Even as it raised prices, Seshasayee stressed that the company remains mindful of the fragile demand environment, with discretionary spending continuing to stay under pressure.

He said Asian Paints would continue to adopt a calibrated pricing strategy, balancing inflationary pressures against the need to protect underlying consumer demand.

While geopolitical tensions have shown signs of easing in recent weeks, Seshasayee cautioned that the situation remains fluid and raw material prices could take time to stabilise.

“As the industry leader, we will continue to adopt a balanced and responsible approach, passing on only such adjustments as are necessary,” he added.

The pricing commentary comes after a difficult year for the paints industry, which battled not only volatile input costs but also a prolonged monsoon, subdued consumer spending and intensifying competition across the decorative paints segment.

Despite these headwinds, Asian Paints struck an optimistic note on the long-term outlook, pointing to India’s expanding housing market, infrastructure development and rising consumer aspirations as structural growth drivers.

Seshasayee said consumers are increasingly seeking superior products, better service, greater assurance and integrated solutions, while sustainability and technology are becoming key differentiators in the industry.

The company also delivered resilient financial performance during FY26. Consolidated net sales rose 5.1 per cent to Rs 35,516 crore, while net profit after minority interest climbed 17.9 per cent to Rs 4,325.4 crore, supported by margin expansion alongside continued investments in innovation, services and supply chain capabilities.

For Asian Paints, the message was clear: while geopolitical storms may continue to cloud input costs, the company intends to keep its pricing brushstrokes measured rather than broad.