Asian Paints Q3 FY26: Revenue Growth Cushions Profit Decline Amid Seasonal Headwinds

Asian Paints Ltd delivered a mixed but resilient performance in the third quarter of FY26, reflecting the company’s ability to sustain growth despite a challenging operating environment. The country’s largest decorative paints manufacturer reported consolidated revenue of ₹8,867 crore during the quarter, marking a clear improvement over both the previous quarter and the year-ago period. The growth was largely supported by volume-led demand, even as external factors weighed on overall profitability.

Consolidated net profit for the quarter stood at ₹1,059.9 crore, registering a decline of 4.6 percent compared to ₹1,110.5 crore in Q3 FY25. The moderation in profit was primarily attributed to exceptional items, rather than any structural weakness in the company’s core business. Asian Paints absorbed one-time costs related to employee benefits under the new Labour Code, along with impairment charges linked to its White Teak acquisition.

Despite these pressures, operational performance remained stable. The company’s standalone revenues rose to ₹7,625 crore, while operating margins showed improvement on a sequential basis. Standalone PBDIT margins expanded to 21.4 percent, aided by cost discipline and improved operating leverage. Notably, total standalone expenses remained largely flat at ₹6,301 crore, underlining effective cost management during a quarter impacted by extended monsoons and a shorter festive season.

Volume growth continued to be a key driver, helping offset demand softness caused by weather disruptions and fewer festive days. Management highlighted that underlying demand conditions remained healthy, with steady traction across urban and semi-urban markets. The company also benefited from improved efficiencies in its international operations, which supported consolidated profitability.

For the nine months ended FY26, Asian Paints reported consolidated revenue of ₹26,337 crore, up from ₹25,547 crore in the corresponding period last year. Net profit for the nine-month period increased 6 percent year-on-year to ₹3,153 crore, reflecting stable expansion despite near-term headwinds.

Going ahead, Asian Paints continues to focus on strengthening its core decorative paints business, improving operating efficiencies and driving innovation across product categories. While short-term challenges may persist, the company’s strong brand equity, distribution strength and disciplined cost approach position it well to navigate a competitive and evolving market environment.