Asian Paints Ltd., India's largest paint company, saw its shares decline on Friday, May 9, following a disappointing earnings report for the quarter ended March 2025. The company's net profit plummeted by 45% year-on-year, coming in at ₹692 crore, well below expectations. Consolidated revenue for the quarter also fell 4.3% to ₹8,359 crore.
CEO Cites Weak Demand
Amit Syngle who is the Managing Director and CEO of Asian Paints highlighted the ongoing challenges posed by weak demand across the paint industry.
"The weak demand conditions prevalent for the past few quarters continued to affect the paint industry even in the last quarter of the financial year," he said.
FY26 Outlook: Modest Growth Ahead
Looking ahead to FY26, Asian Paints has guided for:
- Single-digit value growth
- EBITDA margins in the range of 18–20%
- A reduction in the volume-value growth gap from the current 6.5–7% to 6%
Management is optimistic about recovery in the current financial year, citing:
- A rebound in government spending
- Improved performance in the B2B segment
- Mid-to-luxury housing demand resurgence
- Strong rural demand, fueled by a favorable monsoon forecast
Competition Heating Up
Asian Paints also admitted to being caught off-guard by the intensity of competition, especially from new entrant Birla Opus (from the Aditya Birla Group).
"The weak demand conditions prevalent for the past few quarters continued to affect the paint industry even in the last quarter of the financial year" said Syngle.
At 9:20 AM on Friday, Asian Paints shares traded at ₹2,285.20 on the NSE, down 0.75%.
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