Asian Paints has released an investor presentation regarding its financial performance for Q2 and H1 FY26. The presentation highlights the company’s key initiatives for accelerating growth, including brand building, innovation, market ignition, and backward integration. It details financial results, including revenue and profitability metrics, across its decorative and industrial businesses, both in India and internationally. The presentation also provides an outlook for Q3 FY26.
Growth Initiatives
Asian Paints is focusing on several initiatives to accelerate growth:
- Brand Building: Massive upsurge in brand building activities.
- Innovation: Dialed-up innovation quotient through new product launches.
- Services: Services ignition through Beautiful Homes Painting Services.
- Market Ignition: Regional market ignition with customized product offerings.
- B2B Expansion: Widening the net in the B2B segment.
- Backward Integration: Strengthening backward integration for cost efficiency.
India Business Performance
The Decorative Business in India showed significant volume growth in Q2 FY26, improving from previous quarters. There’s improved consumer sentiment supported by policy actions and an early festive season. The Industrial segment also showed strong momentum, fueling overall coatings performance.
Home Décor Foray
Asian Paints is expanding its presence in the home décor segment. The Beautiful Homes network has expanded to 73 stores. The company is addressing challenging dynamics in the Kitchen and Bath business and scaling up its White Teak and Weatherseal businesses.
International Business
The International Business achieved double-digit revenue growth, led by key units in Asia, the Middle East, and Africa. There’s a marked improvement in profitability due to material cost deflation and divestment of loss-making operations in Indonesia.
Financial Performance
Here’s a summary of the standalone financials:
- Net Sales grew by 5.8% in Q2 FY26, led by volume growth.
- Gross Margin was at 43.7%, higher by 270 bps year-over-year.
Financial Performance – Consolidated
Here’s a summary of the consolidated financials:
- Net Sales grew by 6.4%, supported by growth across Decorative, Industrial and International businesses.
- Gross Margin at 43.1%, higher by 250 bps year-over-year.
Dividend
- Interim Dividend 450% (₹ 4.50).
Outlook for Q3 FY26
Asian Paints expects to see improved demand conditions, with the festival and marriage season expected to provide support. The company will maintain a strong focus on driving innovation and enhancing brand saliency.
Source: BSE
