Asian Paints Announces Fresh Price Hikes as Raw Material Costs Remain High

Asian Paints Announces Another Round of Paint Price Hikes Amid Cost Pressures

Asian Paints is preparing to increase prices across its decorative paints business once again, as persistent raw material inflation and geopolitical disruptions continue to put pressure on the company’s operating costs. The latest move comes even as the paint manufacturer reported double-digit revenue growth during the September quarter of FY27.

The company has opted for staggered price increases rather than a single sharp revision, seeking to balance rising input costs with consumer demand. While Asian Paints had already introduced calibrated price adjustments and absorbed part of the cost escalation, the impact of higher raw material prices and supply constraints became more pronounced during the second quarter.

Amit Syngle, Managing Director and Chief Executive Officer of Asian Paints, said the company had taken a measured approach to pricing to protect demand in a challenging market. With inflationary pressures continuing, further increases are now being implemented alongside initiatives to improve operational efficiency. The company has not disclosed the exact extent of the latest price revision.

Despite the cost pressures, Asian Paints delivered growth in its September-quarter financial performance. Consolidated net profit after minority interest increased 7.5% year-on-year to ₹1,067.6 crore, while profit before tax rose 6.2% to ₹1,477.8 crore.

On a standalone basis, net sales grew 14.8% to ₹8,423.6 crore, compared with ₹7,335.9 crore in the corresponding quarter last year. Standalone net profit also increased 14.6% to ₹1,095.6 crore. However, the PBDIT margin declined to 17.1% from 18.5%, indicating the impact of higher operating costs.

Decorative Paints and Industrial Coatings Drive Growth

The company’s domestic coatings business recorded value growth of 16.4% during the quarter. Within this segment, decorative paints registered 14.5% value growth and 6.4% volume growth. Industrial coatings delivered a stronger performance, with value growth of 31.8%.

The international business also contributed to overall revenue growth. Net sales increased 29.5% to ₹1,095.6 crore, although international profit before tax declined 31% to ₹52.7 crore.

Dahej Plant Adds to Manufacturing Capabilities

Alongside pricing measures, Asian Paints is strengthening its manufacturing capabilities through backward integration. The company commissioned the first phase of its vinyl acetate ethylene manufacturing facility at Dahej during the quarter. The facility is expected to support cost competitiveness and enable the development of differentiated products.

For the first half of FY27, consolidated net sales increased 17.4% to ₹20,475.3 crore, while net profit after minority interest rose 24.5% to ₹2,606.9 crore.

The company has also declared an interim dividend of ₹5.75 per share.

The latest price increases underline the challenge facing paint manufacturers as input costs remain elevated. For Asian Paints, the coming quarters will test its ability to maintain sales momentum while protecting margins without significantly affecting consumer demand.