Chairman R. Seshasayee says the company expects raw material costs to remain volatile despite signs of de-escalation in the West Asia conflict
Asian Paints has implemented measured price increases of approximately 12 per cent to offset higher crude oil-linked raw material costs arising from the recent escalation of the West Asia conflict, Chairman R. Seshasayee said while addressing shareholders at the company’s 80th Annual General Meeting (AGM). The company said it would continue to balance pricing actions with the need to protect consumer demand as geopolitical uncertainties persist.
“The recent escalation in West Asia has created significant inflationary pressures in raw materials, particularly through crude oil-linked inputs. In response, we have implemented measured price increases of approximately 12 per cent to mitigate these headwinds,” Seshasayee said.
The AGM also marked Seshasayee’s final year as Chairman of Asian Paints. He added that although there have been signs of de-escalation in the conflict, the operating environment remains uncertain.
“Very recently, there have been signs of de-escalation in the West Asia conflict. However, the situation remains fluid, and it may take time for input costs to return to normalcy. As the industry leader, we will continue to adopt a balanced and responsible approach, passing on only such adjustments as are necessary,” Seshasayee said who is serving his fina.
Paint manufacturers rely heavily on crude oil derivatives for key inputs such as resins, solvents and additives, making the industry vulnerable to fluctuations in global crude prices. The latest pricing action comes amid rising competition in the domestic decorative paints market and subdued discretionary consumer spending.
Despite the challenging market conditions, Asian Paints reported consolidated net sales of Rs 35,516 crore in the financial year 2025-26, registering growth of 5.1 per cent over the previous year. Consolidated operating margin, measured by profit before depreciation, interest and tax (PBDIT), improved to 18.9 per cent from 17.8 per cent, while net profit after minority interest rose 17.9 per cent to Rs 4,325.4 crore.
The company said the financial year was affected by a prolonged monsoon that compressed the festive painting season, measured consumer discretionary spending and increased competitive intensity following industry consolidation.
The Board has recommended a final dividend of Rs 23 per equity share, in addition to the interim dividend of Rs 4.50 per share paid in November 2025. Subject to shareholders’ approval, the total dividend for FY26 will be Rs 27.50 per equity share, compared with Rs 24.80 per share in the previous financial year, representing an increase of around 11 per cent and a payout ratio of 60 per cent.
Expansion And Innovation
Asian Paints said innovation continued to contribute significantly to its business during FY26, with products launched over the past few years contributing around 16 per cent of total revenue. During the year, the company introduced products including SmartCare Damp Secure, Apcolite All Protek and WoodTech PU Gold. It also established the ColourNext Lab to support research across colour, finishes, surfaces and design trends.
The company expanded its distribution network by adding nearly 6,000 retail touchpoints across India. It also strengthened its institutional business through the AP Assure digital platform, while its industrial joint ventures recorded double-digit growth. Asian Paints further extended its joint venture with PPG Group by another 15 years.
As part of its backward integration strategy, the company is developing an integrated vinyl acetate monomer (VAM)-vinyl acetate ethylene (VAE) manufacturing facility at Dahej. The project will have annual production capacities of 150,000 metric tonnes of VAE and 100,000 metric tonnes of VAM. During the year, the company also commissioned its white cement manufacturing facility in Fujairah, the United Arab Emirates.
ESG And Outlook
Asian Paints said renewable energy accounted for 56.5 per cent of electricity consumption across its manufacturing facilities during FY26, while its water replenishment rate reached 589 per cent of freshwater consumption. The company added that it has reduced its cumulative greenhouse gas emissions by more than 139,000 tonnes, while recycled plastic now accounts for 40 per cent of its packaging.
Through its Beautiful Homes Academy, the company trained more than 945,000 participants during the year, while its healthcare initiatives reached over 259,000 beneficiaries. Employee engagement stood at 82 per cent. Looking ahead, Seshasayee said India’s housing, infrastructure and consumption sectors continue to offer long-term growth opportunities despite global uncertainties.
“The opportunities before us remain compelling. India’s housing, infrastructure and consumption story offer immense opportunities. Consumers are seeking better products, better service, greater assurance and more complete solutions. Institutions are looking for trusted partners who can deliver at scale,” he said.
