Asian Paints Q2 FY26 Results: Profit Rises 43%, Dividend Declared
Asian Paints Q2 FY26 Results Profit Rises 43%, Dividend Declared
Asian Paints Ltd has reported a strong second-quarter performance for FY26, driven by healthy growth in its decorative, automotive, and industrial coatings businesses. The company’s net profit jumped 43% year-on-year to ₹994 crore for the quarter ended September 30, 2025, compared to ₹695 crore in the same period last year. Following the results, the board also approved an interim dividend of ₹4.5 per share for shareholders.
Key Takeaways On Asian Paints Q2 FY26 Results
- Net Profit: ₹994 crore, up 43% year-on-year
- Revenue: ₹8,531 crore, up 6.3% YoY
- EBITDA: ₹1,503 crore, up 21.3% YoY, with margins at 17.6%
- Interim Dividend: ₹4.5 per share; record date fixed for November 2025
- Share Price Movement: Closed 6.5% higher at ₹2,832 on NSE
- International Business: Revenue growth of 9.9%, led by South Asia, Middle East, and Africa
Strong Growth Across Business Segments
The company’s decorative paints segment in India recorded 10.9% volume growth and 6% value growth, supported by improved consumer sentiment and festive demand across both urban and rural areas. According to Amit Syngle, Managing Director and CEO of Asian Paints, the brand’s marketing efforts and regional activations helped drive strong sales momentum despite a prolonged monsoon season.
The automotive and industrial coatings divisions also delivered steady performance, contributing to an overall 6.7% value growth in the domestic coatings business. The international business grew 9.9%, with strong traction in South Asia, the Middle East, and Africa. On a constant currency basis, the global portfolio posted a 10.6% revenue increase during the quarter.
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Improved Margins and Profitability
Asian Paints’ operating margins expanded to 17.6%, up from 15.4% a year ago, supported by better cost management and efficiency initiatives. The EBITDA rose 21.3% to ₹1,503 crore, reflecting stronger operational performance and improved profitability.
The company highlighted that ongoing cost optimization measures and strategic investments in brand building and retail initiatives played a key role in achieving this growth.
Share Performance and Market Outlook
Following the earnings announcement, Asian Paints shares surged over 6%, closing at ₹2,832 per share on the NSE. Over the last 12 months, the stock has risen nearly 12%, and is up 21% year-to-date.
Out of 38 analysts tracking the stock, 11 have a ‘buy’ rating, nine recommend holding, and 18 suggest selling. Bloomberg data indicates that the average 12-month target price suggests a 13% downside, indicating mixed investor sentiment after the recent rally.
Despite challenges like volatile raw material costs and dynamic market conditions, the company remains focused on innovation and strengthening brand visibility, aiming to sustain growth and deliver long-term value to stakeholders.
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