Will Asian Paints Maintain Its Strong Growth and Margin Trajectory Through FY26?
About Asian Paints
Asian Paints is India’s leading decorative paints and home décor company with a strong presence in industrial coatings, waterproofing, and international markets. The company continues to invest heavily in brand building, retail expansion, digital activations, and improving supply chain efficiencies to strengthen its long-term leadership.
Q2 FY26 showcased broad-based growth across decorative paints, strong profitability, resilient demand in key categories, and margin expansion supported by cost efficiencies and stable input prices.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY26 | YoY | Estimates |
|---|---|---|---|
| Revenue | ₹8,531 Cr | +6.3% | ₹8,105 Cr (Beat) |
| EBITDA | ₹1,503 Cr | +21.3% | ₹1,325 Cr (Beat) |
| EBITDA Margin | 17.63% | +219 bps | 16.3% (Beat) |
| PAT | ₹1,018 Cr | +43% | ₹870 Cr (Beat) |
Revenue ₹8,531 Cr — supported by 10.9% domestic volume growth and healthy festive recovery.
EBITDA ₹1,503 Cr — strong operational performance coupled with favourable raw material trends.
PAT ₹1,018 Cr — driven by improved mix, cost efficiencies, and controlled overheads.
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Peer Comparison
| Company | Segment | EBITDA Margin |
|---|---|---|
| Asian Paints | Decorative/Industrial | 17.6% |
| Burger Paints | Decorative | 12.5% |
| Kansai Nerolac | Industrial | 11.2% |
Asian Paints' margin leadership continues despite rising competitive intensity and higher promotional activity in the decorative segment.
Strengths & Weaknesses
Strengths
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Weaknesses
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Recent brokerages differ on long-term trajectory but broadly acknowledge strong market share gains and stable margins.
Opportunities & Threats
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Valuation & Investment View
- Short-term: Momentum supported by festive demand and Q3 seasonality.
- Medium-term: EBITDA margin expected to stabilise around 18–20% band.
- Long-term: Leadership in decorative plus expansion into full home solutions strengthens earnings visibility.
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Investor Takeaway
Indian-Share-Tips.com Nifty & Bank Nifty Expert Gulshan Khera, CFP®, notes that Asian Paints continues to deliver a balanced combination of volume growth and margin excellence, making it a structural long-term compounder. Explore comprehensive insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions.
