Asian Paints (ASIANPAINT) Q2 25/26 earnings summary

Executive summary

• Achieved 10.9% volume growth and 6% value growth in Q2 FY26, with consolidated net sales up 6.4% to ₹8,514 crores, driven by internal initiatives, innovation, and broad-based gains across urban and rural markets.

• Gross margin improved by 250-270 bps to 43.1%-43.7% in Q2 FY26, supported by material cost deflation and operational efficiencies.

• PBDIT margin expanded to 17.7% (consolidated) and 18.5% (standalone), with Q2 PBDIT up 21.3% and net profit after minority interest up 43%.

• Premium/luxury emulsions and new products (now >15% of revenue) performed strongly, while international and industrial businesses delivered robust growth and margin expansion.

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

Financial highlights

• Q2 FY26 standalone net sales up 5.8%-6%, gross margin at 43.7% (up 270 bps), and PBDIT margin at 18.5% (up 230 bps).

• Q2 FY26 consolidated net sales up 6.4%, gross margin 43.1% (up 250 bps), PBDIT margin 17.7% (up 220 bps), and net profit after minority interest up 43% to ₹993.6 crores.

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

• Dividend payout ratio at 60%, with interim dividend of ₹4.50 per share.

Outlook and guidance

• Demand conditions are improving, with festive and marriage seasons expected to boost sales, but competitive intensity and geopolitical risks persist.

• GST 2.0 and low inflation anticipated to support domestic consumption.

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

• Management remains focused on innovation, cost efficiency, and brand investments.