Revenue climbs 17.2% to Rs 9,977 crore in the September quarter, while Asian Paints plans further price hikes to offset raw material inflation and protect margins
Asian Paints reported a 7.4 per cent year-on-year increase in consolidated net profit to Rs 1,068 crore in the September quarter of FY27, as a sharp rise in material costs outpaced revenue growth. Revenue from operations grew 17.2 per cent to Rs 9,977 crore, while total expenses increased 19.4 per cent to Rs 8,789 crore.
The cost of materials consumed rose 35 per cent during the quarter, putting pressure on operating performance. Profit before depreciation, interest, tax and other income (PBDIT) increased 3.6 per cent to Rs 1,557 crore, compared with Rs 1,503 crore in the corresponding quarter last year.
The company had reported consolidated net profit of Rs 994 crore and revenue of Rs 8,513 crore in the year-ago period. Its shares traded around 2 per cent lower at Rs 2,255 apiece following the results.
Asian Paints also declared an interim dividend of Rs 5.75 per equity share for FY27, fixing November 4 as the record date. Payment is scheduled by 13 November.
Further Price Increases Planned
The company is preparing another round of staggered price increases in its coatings business as raw material inflation and supply constraints continue to affect costs. Managing Director and Chief Executive Officer Amit Syngle said Asian Paints had raised prices selectively while absorbing part of the cost increases to protect demand.
“The operating environment this year has been marked by sharp raw material inflation and material availability constraints driven by geopolitical disruptions, the full impact of which was felt in Q2. We calibrated price increases and absorbed part of the cost inflation to protect consumer demand in this challenging environment, resulting in standalone Ebitda margins of 17.1% in a quarter that typically has a lower mix and margin profile,” Syngle said.
The company is also stepping up cost-efficiency initiatives. Its ability to pass on higher input costs without weakening demand will be an important factor in determining how margins perform in subsequent quarters.
International Sales Rise 30%
Asian Paints’ international business recorded a nearly 30 per cent year-on-year increase in net sales to Rs 1,096 crore. Sales grew around 24 per cent in constant currency terms, with all regions registering growth. Syngle said the Middle East business also delivered robust growth despite service-related challenges arising from the geopolitical situation.
Within home decor, bath fittings sales rose 19 per cent, and the business reported a profit before tax of Rs 9 crore against a loss of Rs 4 crore a year earlier. The kitchen business recorded 13 per cent growth in net sales to Rs 110 crore, but its loss before tax widened to Rs 8 crore.
Sales at White Teak declined 12 per cent year-on-year, while Weatherseal sales fell 2 per cent.
As the festive season progresses, the company plans to focus on brand building, innovation and service-led differentiation to sustain growth, Syngle said.
