Tag: AsianPaints

Shares of Asian Paints tumbled nearly 7% on January 28 after the company reported Q3 net profit of ₹1,060 crore, down 5% YoY, and revenue of ₹8,867 crore, up just 4% YoY. Slower-than-expected demand, a short festive season, and extended monsoon rains hit decorative paint sales.

Brokerages reacted cautiously. Motilal Oswal called the quarter “lacklustre,” warning that recovery in decorative paint demand may be delayed. EBITDA margin guidance remains 18–20%, but earnings forecasts were slightly trimmed.

JM Financial noted decorative paint volume growth at 7.9% and value growth at 2.8%, below expectations, while Citi highlighted ongoing competitive pressures, maintaining a Sell rating.

Despite expectations of mid-single-digit growth ahead, analysts say the gap between volume and value growth may persist. Weak Q3 results and cautious guidance sent the stock to its lowest since October 2025, signaling that India’s paint market recovery may take longer than expected.

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Asian Paints, India’s largest paint maker, is expanding its presence in the Middle East with a new manufacturing facility in the United Arab Emirates. Its UAE subsidiary, Berger Paints Emirates Ltd, will invest approximately ₹340 crore (AED 140 million) to set up the second plant in Abu Dhabi.

The new factory will be located in the Khalifa Economic Zones Abu Dhabi (KEZAD) and will cover about 100,000 square metres. It is expected to have an initial production capacity of 55,800 kilolitres per year, enabling the company to meet growing demand in the region efficiently.

This investment comes as part of Asian Paints’ broader strategy to strengthen its international footprint and enhance supply chain capabilities. By increasing manufacturing capacity in the UAE, the company aims to serve both local and regional markets better while reducing reliance on imports.

The move also reflects Asian Paints’ focus on catering to the Middle East’s expanding construction and real estate sector, which is driving demand for decorative and industrial paints. Analysts believe that this expansion will help the company consolidate its market share in the region and support long-term growth.

The UAE plant is expected to be operational within the next few years and will complement Asian Paints’ existing overseas operations, ensuring smoother logistics and faster delivery for customers. This step underscores the company’s commitment to global growth while maintaining a strong regional presence in high-demand markets.

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Asian Paints reported a sharp rise in profits for the July-September quarter, driven by strong festive-season demand and steady growth in its decorative paints segment.

The company’s consolidated net profit jumped 47% year-on-year to ₹1,018.23 crore, compared to ₹692 crore a year earlier. Revenue from operations rose 6% to ₹8,531 crore. The paint major also declared an interim dividend of ₹4.50 per share.

Asian Paints said its decorative paints business grew 10.9% in volume, supported by good demand across metros, towns, and rural areas. The home improvement and industrial coatings divisions also recorded steady gains, while international operations in the Middle East, South Asia and Africa contributed positively.

Margins improved on the back of higher operating efficiency and stable raw-material costs, boosting overall profitability.

Following the results, Asian Paints’ shares rose over 3%, extending their post-earnings rally. The stock has gained about 8% this week, outperforming the broader market.

The management remains optimistic about sustaining growth, backed by new product launches, improved distribution, and festive-driven demand recovery.

However, brokerages offered mixed reactions. While some analysts remain bullish on the company’s strong brand equity and pricing power, others flagged rising competition and uncertain rural demand as near-term challenges.

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