Mumbai– Asian Paints Ltd, India’s leading paint manufacturer by market share, reported a 6% year-on-year decline in consolidated net profit at ₹1,100 crore for the quarter ended June 30, 2025, compared to ₹1,170 crore in the same period last year. Revenue from operations stood at ₹8,924 crore, a marginal dip of 0.2% from ₹8,943 crore in Q1 FY25.
📊 Key Highlights
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Profit in line with analyst estimates: The results matched market expectations, with analysts forecasting PAT around ₹1,108 crore.
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Volume recovery cushions performance: Domestic decorative paint volumes (constituting ~87% of revenue) rose nearly 4%, exceeding estimates of 2‑7%. Early monsoons supported retail demand despite expected softness.
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Competitive pressure and cost inflation: While modest volume growth aided performance, price cuts amid mounting competition from new entrant Birla Opus and rising input costs weighed on margins.
🧩 Context & Strategic Pressures
Asian Paints has come under pressure with its market share declining from 59% to 52% over the year ending March 2025, amid the aggressive market entry of Grasim Industries’ Birla Opus, which secured ~6.8% share through aggressive pricing and expansion strategies. This heightened competition has strained pricing power, especially in the decorative paints segment.
Earlier in FY25, Asian Paints experienced a sharper decline: net profit fell by roughly 24–25% to ₹1,170 crore and revenue dropped ~2.3% in Q1 FY25, driven by weak demand, price cuts, constitutional festive softness, and entitlement from a high base in the prior year.
💡 Management Outlook
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Demand strategy: Asian Paints continues to aim for volume growth in rural and affordable premium segments, banking on monsoon revival and easing heatwave impacts.
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Margin protection: With input costs still high, the company focuses on maintaining operational efficiency while investing in innovation and retail expansion.
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Long-term positioning: Management continues to emphasise differentiation through product extensions, smarter retail channels, and customer-centric innovations—rather than deep discounting—amid growing competition.
✅ Summary
| Metric | Q1 FY26 | YoY Change |
|---|---|---|
| Net Profit (PAT) | ₹1,100 crore | −6% |
| Revenue from Operations | ₹8,924 crore | −0.2% |
| Domestic Decorative Volume | ~4% growth | + (beats estimates) |
Asian Paints delivered a performance largely in line with market estimates, supported by volume uptick despite competitive headwinds and cost pressures. The results reflect resilience, but maintaining margins and market leadership amid intensifying competition remains challenging.
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