Asian Paints reported a strong Q3 FY2026, marked by a resilient volume growth of 7.9% despite a compressed festive season. Industrial segment showed stellar performance elevating overall coatings performance. The company saw gross margin improvement of 200 bps driven by material deflation and efficiencies. New products contribute ~16% of overall revenues. Looking ahead, Asian Paints aims to maintain growth momentum and leverage industrial segment and international business.
Q3 Performance Highlights
Asian Paints showcased a resilient performance in Q3 FY2026, achieving a volume growth of 7.9%. This growth was achieved despite a shorter festive season and prolonged monsoon in certain regions. The company has been focused on premium and luxury categories which has led to improved margins and better realization.
Segmental Performance
The industrial business has performed well, adding acceleration to overall coatings. Volume growth in overall coatings jumped to 8.3% and value growth to 4.4%. B2B business performed better than the overall retail area, with strong growths from factories and the government sectors.
Financial Performance
The company reported Gross Margin at 44.9%, which is 200 bps higher year-on-year, primarily driven by deflation and efficiencies. PBDIT growth stood at 7.8%, and PBDIT margin at 21.4%. PAT before exceptional items grew by 6.6%.
Innovation and Expansion
New products contributed approximately 16% to overall revenues. The company continues to expand its distribution footprint, with reach now extending to over 1.6 lakh retail outlets. There has been a focus on regionalization with offerings tailored to specific markets and introduction of latex paints focusing on rural market.
International Business
International business saw a value growth of 6.3% in INR terms (4.2% in constant currency). Strong growth was noted in Sri Lanka, UAE, and Ethiopia. PBT margin stood at 8.8% for the quarter, higher by 140 bps year-on-year.
Outlook
Asian Paints aims to maintain growth momentum in Q4 FY26, with enhanced traction from the Industrial segment. The company is closely monitoring geopolitical uncertainties and exchange rate volatility.
Exceptional Items
The company recorded exceptional items of ₹157.61 crores in the Consolidated Financial Results, including impact of labour code and impairment loss on Obgenix Software Private Limited (White Teak).
Source: BSE
