Asian Paints (ASIANPAINT) Q3 25/26 earnings summary

Executive summary

• Achieved 7.9% volume growth and 2.8% value growth in Q3 FY26, with all product categories contributing despite a shorter festive season and prolonged monsoon.

• Consolidated net sales for Q3 FY26 rose 3.9% year-over-year to ₹8,850 crore, with standalone net sales up 2.9% to ₹7,602 crore.

• B2B, industrial, and international segments showed strong momentum, with international business net sales up 6.3% in Q3 FY26, led by Sri Lanka, UAE, and Ethiopia.

• Premium and luxury categories, new product launches, and digital initiatives drove margin improvement and business expansion.

• Rural markets outperformed urban, aided by good rainfall and infrastructure spending.

Financial highlights

• Q3 FY26 consolidated net sales reached ₹8,850 crore, up 3.9% year-over-year; 9M FY26 net sales at ₹26,288 crore, up 3.2%.

• Gross margin improved to 44.3% (Q3 FY26 consolidated), up 200 bps year-over-year; standalone gross margin at 44.9%.

• PBDIT margin at 20.1% (Q3 FY26 consolidated), up 90 bps; standalone PBDIT margin at 21.4%, up 100 bps.

• PAT before exceptional items at ₹1,216 crore in Q3 FY26, up 7.7% year-over-year; consolidated net profit after minority interest fell 4.6% to ₹1,059.9 crore due to exceptional items.

• Exceptional items included Labour Code impact (₹63.74 crore consolidated) and impairment loss on White Teak (₹93.87–₹94.4 crore consolidated).

Outlook and guidance

• Focus on sustaining growth momentum in Q4 FY26, with continued emphasis on B2B, industrial, and international segments.

• Margin guidance maintained at 18%-20%, with cost control and brand investment as priorities.

• Competitive intensity and geopolitical/exchange rate risks expected to persist, impacting input prices and demand.

• International business momentum expected to continue, except for Bangladesh due to elections.