Asian Paints Strong Q2 FY’26 Results Driven by Volume Growth and Margin Expansion

Asian Paints announced robust results for Q2 FY’26, marked by a 10.9% volume growth in its decorative business in India. Consolidated Net Sales reached ₹8,514 crores, a 6.4% increase. The company saw significant margin expansion, with Consolidated PBDIT up 21.3% to ₹1,503 crores. An interim dividend of ₹4.5 per share was declared, reflecting a 450% payout ratio.

Key Performance Drivers

Asian Paints’ Q2 FY’26 performance was fueled by the following factors:

  1. A strong 10.9% volume growth in the domestic decorative business, overcoming challenges from an extended monsoon.
  2. Improved consumer sentiment and supportive policy actions aiding demand.
  3. Broad-based growth across both urban and rural centers, with contributions from all product categories.
  4. Steady double-digit growth in the industrial segments.
  5. A 9.9% growth in the international business (10.6% on a constant currency basis).

Financial Highlights for Q2 FY’26

  • Consolidated Net Sales: Increased by 6.4% to ₹8,513.7 crores.
  • Standalone Net Sales: Increased by 5.8% to ₹7,335.9 crores.
  • Consolidated PBDIT: Increased by 21.3% to ₹1,503.4 crores.
  • Standalone PBDIT Margin: 18.5%, up 230 bps year-over-year.
  • Consolidated PBDIT Margin: 17.7%, up 220 bps year-over-year.
  • Net Profit (after minority interest): Increased by 43.0% to ₹993.6 crores.

H1 FY’26 Performance

  • Consolidated Net Sales: Increased by 2.9% to ₹17,438.2 crores.
  • Consolidated PBDIT: Increased by 6.7% to ₹3,128.3 crores.
  • Net Profit (after minority interest): Increased by 12.3% to ₹2,093.4 crores.

Segmental Performance

The international business witnessed a 9.9% sales increase to ₹846.0 crores in Q2 FY’26, representing a 10.6% growth on a constant currency basis.

Industrial business segments also performed well:

  • APPPG: Sales increased by 10.2% in Q2 FY’26 to ₹292.6 crores.
  • PPGAP: Sales increased by 13.3% in Q2 FY’26 to ₹594.3 crores.

Interim Dividend

The Board declared an interim dividend of ₹4.5 per share.

Source: BSE

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