Asian Paints reported a robust 30% revenue growth in Q2 FY27, reaching ₹1,096 crore, with constant currency growth at 23.7%. The company highlighted strong performance across all regions, driven by broad-based demand, successful B2B business, and innovation-led propositions. They also detailed progress in backward integration and new product development, aiming to maintain an EBITDA margin of 18% to 20%.
Asian Paints Announces Strong Q2 FY27 Performance
Asian Paints has announced its financial results for the second quarter (Q2) and first half (H1) of Fiscal Year 2027 (FY27), showcasing significant growth across key financial metrics. The company reported a 30% increase in revenue for Q2 FY27, reaching ₹1,096 crore, with a constant currency growth of 23.7%. This performance was consistent across all geographic regions, underscoring a broad-based demand.
Key Growth Drivers and Financial Highlights
The revenue growth was attributed to several strategic initiatives including strong performances in B2B segments, expansion of distribution footprint, and the success of ‘Beautiful Homes Painting Services’. Innovation-led propositions contributed approximately 18% of overall revenues. The company also noted the commissioning of its first VAE plant, which is expected to drive product differentiation and cost benefits.
Financial Performance Summary
For Q2 FY27:
- Net Sales grew 30% to ₹1,096 cr.
- PBT saw a decrease of 31% to ₹53 cr, with PBT margin at 4.8%, impacted by inflation.
For H1 FY27:
- Net Sales grew 28% to ₹20,475 cr.
- PBDIT growth was 19.1% to ₹3,726 cr, with a PBT margin of 18.2%.
Strategic Outlook and Innovation
Asian Paints anticipates continued raw material inflation and supply chain volatility, but plans to respond with differentiation, brand building, and innovation. Key priorities for Q3 FY27 include capitalizing on festive and wedding seasons, sustaining investment in innovation, and driving calibrated pricing and cost efficiencies. The company aims to maintain its EBITDA margin band of 18% to 20% through these efforts.
Product and Segment Updates
The company highlighted its ‘Chromacosm’ initiative, featuring over 5,000 shades, and new product launches like Royale Infinity, Ultima Lamino, and Majestic in international markets. The ‘GenNext Green Technology’ for VAE production is a key differentiator, promising benefits of 300 bps to 500 bps on relevant products. Backward integration projects are on track to provide significant advantages in margins and cost savings.
Dividend Announcement
An interim dividend of ₹5.75 per share has been announced for H1 FY27, maintaining a payout ratio of approximately 21.4%.
Source: BSE
