India · Delayed Price · Currency is INR Asian Paints Earnings Call Transcripts
Fiscal Year 2026
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Q3 saw 7.9% volume growth and 2.8% value growth, with strong margins and robust B2B and industrial performance. Premiumization, new product launches, and expanded services drove results, while competitive intensity and raw material volatility remain key risks.
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Double-digit volume growth and margin expansion were achieved through strong internal initiatives, despite muted industry demand and extended monsoon impacts. International and industrial segments outperformed, while home decor lagged. Margin guidance and mid-digit value growth outlook are maintained.
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Q1FY26 saw modest volume growth, strong industrial and international performance, but flat sales and pressured margins due to higher rebates and a weaker mix. Management maintains margin guidance, expects rural demand recovery, and continues to invest in innovation and backward integration.
Fiscal Year 2025
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Faced a tough year with negative value growth, especially in decorative paints, but industrial and B2B segments showed resilience. Gross margins improved due to deflation and efficiencies, while competitive intensity and demand weakness weighed on sales and profitability.
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Q3 FY25 saw muted demand, with volume up 1.6% but value down 7.8% year-over-year. Industrial and B2B segments outperformed decorative, while gross margins improved sequentially. Guidance for 18%-20% PBIT margin is maintained, with rural and B2B expected to drive near-term growth.
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Q2 FY25 saw a 6.7% value decline and 6% volume degrowth due to weak demand, price cuts, and intense competition, with industrial and home décor segments outperforming core coatings. Margins fell sharply, and exceptional items included impairments and forex losses. H2 margin guidance remains at 18%-20% if crude prices stabilize.
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Q1 FY25 saw 7% volume growth but a 3% value decline due to weak product mix and inflation, with rural and premium segments showing resilience. Management expects double-digit volume growth for the rest of FY25, supported by festive demand and price hikes to offset inflation.
Fiscal Year 2024
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The AGM highlighted strong profit growth, a 30% higher dividend, and robust innovation despite modest revenue gains. Strategic investments, expanded distribution, and ESG progress were emphasized, while management addressed competition, capex, and shareholder concerns.