Asian Paints (ASIANPAINT) Q2 25/26 earnings summary

Executive summary

• Achieved 10.9% volume growth and 6.4% consolidated net sales growth in Q2 FY26, with strong contributions from decorative, industrial, and international segments.

• Gross margin improved to 43.1% (up 250 bps), driven by material cost deflation and operational efficiencies.

• PBDIT margin expanded to 17.7% (up 220 bps), with standalone margin at 18.5% (up 230 bps).

• PAT before exceptional items increased by 16.5% year-over-year in Q2 FY26; consolidated net profit after minority interest rose 43%.

• Interim dividend of ₹4.50 per share declared for FY26.

Financial highlights

• Q2 FY26 consolidated net sales up 6.4% to ₹8,514 crores; standalone net sales up 5.8% to ₹7,336 crores.

• Q2 FY26 consolidated PBDIT increased 21.3% to ₹1,503 crores; margin at 17.7% (up 220 bps).

• Q2 FY26 consolidated net profit after minority interest up 43% to ₹993.6 crores; standalone net profit up 60% to ₹955.6 crores.

• H1 FY26 consolidated net sales up 2.9% to ₹17,438.2 crores; net profit after minority interest up 12.3% to ₹2,093.4 crores.

• Dividend payout ratio at 60%, with interim dividend of ₹4.50 for FY26.

Outlook and guidance

• Expect mid-digit value growth for the full year, with volume growth outpacing value by 4-5%.

• Demand conditions are improving, with festive and marriage seasons expected to boost sales.

• Margin guidance maintained at 18-20% amid benign raw material prices and ongoing investments in marketing and technology.

• Competitive intensity remains high; focus on innovation, brand saliency, and cost efficiency.

• Cautious on geopolitical and currency risks affecting raw material costs.