More Stories

Informist, Thursday, Oct. 22, 2026

 

By Gunjan Rajput

 

NEW DELHI – Asian Paints Ltd. is expected to report a healthy year-on-year growth in its consolidated net profit for the September quarter, supported by price hikes and volume growth in its domestic decorative paints business. However, elevated crude-linked raw material costs and consumption of high-cost inventory are likely to weigh on its operating margins, according to analysts. A high base in the June quarter is expected to reduce revenue and net profit sequentially in the September quarter.

 

Mumbai-headquartered Asian Paints' consolidated net profit is expected to rise over 13% year-on-year to INR 11.27 billion, according to estimates from 16 brokerages. The highest estimate for the bottom line is INR 12.41 billion from Equirus Securities Pvt. Ltd., while the lowest is INR 9.81 billion from Nirmal Bang Equities Pvt. Ltd.

 

The company's revenue is expected to rise nearly 14% on year to INR 97.15 billion, according to the average of estimates. The highest revenue estimate is INR 101.96 billion from Systematix Shares and Stocks (India) Ltd., while the lowest is INR 95.42 billion from Elara Securities (India) Pvt. Ltd. Sequentially, net profit is likely to decline nearly 27%, and revenue is expected to fall around 8%.

 

Asian Paints' top line is expected to benefit from earlier price hikes and volume growth in its domestic decorative paints business. The paint maker's volume growth is expected to be 5-6% year-on-year, according to brokerages. However, revenue growth is expected to decline sequentially, as trade inventory normalises after channel stocking in the June quarter.

 

Asian Paints is expected to implement another 3% price hike, citing continued inflation in raw materials, packaging, and logistics, according to three brokerage reports. The proposed increase is expected to take effect from Nov. 1, following cumulative price hikes of around 10-14% implemented earlier in the year. However, the impact of higher prices on volume growth remains a key factor for the quarter. Nuvama Wealth Management Ltd. expects the gap between value and volume growth to narrow to 7-8%, as pricing gains flow into revenue.

 

Asian Paints' consolidated earnings before interest, taxes, depreciation and amortisation are expected to rise almost 10% on year to INR 16.52 billion, according to the average of estimates from 13 brokerages. The highest EBITDA estimate is INR 18.10 billion from Equirus Securities, while the lowest is INR 15.36 billion from Nirmal Bang Equities.

 

Despite the estimated revenue growth, brokerages expect higher crude-linked raw material costs to weigh on Asian Paints' margins. The benefit from low-cost inventory has largely played out, while higher-cost inventory consumption is likely to increase input costs during the quarter. EBITDA margins are expected to decline to 15.9-17.3%, according to brokerages. Asian Paints had reported an EBITDA margin of 17.7% in the year-ago period.

Brokerages will closely watch domestic and international demand, the impact of price hikes on volumes, competitive intensity, and raw material cost trends to assess the company's margin outlook.

 

Asian Paints is scheduled to report its September quarter results on Oct. 29. At 1054 IST, the company's shares traded at INR 2,291.30 on the National Stock Exchange, down 1.2% from the previous close. The company's shares are nearly 17% down since Asian Paints reported its June quarter results.

 

Of the 16 brokerage reports on the company available with Informist, 13 recommend a 'buy' or equivalent, with an average target price of INR 3,167. This is nearly 38% higher than the current market price. Three brokerages have a 'hold' or equivalent recommendation, with an average target price of INR 2,865.

 

The following are the September quarter earnings estimates for Asian Paints from 16 brokerages, in descending order of net profit estimates, in INR billion:

 

Brokerage	Net Sales	Net Profit	EBITDA
Equirus Securities Pvt. Ltd.	95.43	12.41	18.10
Anand Rathi Share and Stock Brokers Ltd.	99.39	11.97
Prabhudas Lilladher Pvt Ltd.	99.82	11.90	17.77
Mirae Asset Sharekhan Ltd.	96.73	11.85
Nuvama Wealth Management Ltd.	96.67	11.72	17.11
Axis Securities Ltd.	96.76	11.35	16.64
Motilal Oswal Financial Services Ltd.	96.99	11.29	16.79
Asit C. Mehta Financial Services Ltd.	97.26	11.26	16.79
JM Financial Institutional Securities Pvt Ltd.	97.11	11.23	16.33
Systematix Shares and Stocks (India) Ltd.	101.96	11.21	16.21
360 ONE Capital Market Pvt. Ltd.	96.07	11.17
Kotak Securities Ltd.	96.07	10.96	15.99
HDFC Securities Ltd.	96.30	10.80	15.60
Antique Stock Broking Ltd.	96.50	10.77	16.34
Elara Securities (India) Pvt Ltd.	95.42	10.68	15.70
Nirmal Bang Equities Pvt. Ltd.	95.98	9.81	15.36
Average	97.15	11.27	16.52

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Biswadip Mitra

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.