Asian Paints Q2 results came out on Thursday, October 29, and they were a classic case of strong sales, thinner margins. Consolidated net profit rose a little over 7% year-on-year to ₹1,068 crore for July-September, up from ₹994 crore, while revenue from operations grew about 17% to ₹9,977 crore, ET Markets reported. The market wasn’t impressed. The stock traded 2% lower at ₹2,255 after the numbers.
In this article
Asian Paints Q2 results in numbers
- Net profit: ₹1,068 crore, up 7.45% from a year earlier, as Business Standard puts it.
- Revenue from operations: ₹9,977 crore, up 16.94% year-on-year, against ₹8,513 crore in Q2 FY26.
- Total expenses: ₹8,789 crore, up a little over 19%, with the cost of materials consumed jumping 35%.
- PBDIT (profit before depreciation, interest, tax and other income): ₹1,557 crore, up nearly 4% from ₹1,503 crore.
- Interim dividend: ₹5.75 a share on a face value of ₹1.
Where the margin went
Look at the gap between the lines. Revenue grew about 17%, but operating profit grew only about 4%. Divide ₹1,557 crore by ₹9,977 crore and you get an operating margin of roughly 15.6%, against about 17.7% a year ago on the same ET figures. That’s our arithmetic, not a company number, but the direction is plain.
Raw materials did the damage. MD and CEO Amit Syngle said the year has seen sharp raw material inflation and supply constraints tied to geopolitical disruptions, and that the full impact showed up in Q2. The company raised prices in steps but absorbed part of the cost to protect demand, which left standalone EBITDA margin at 17.1%. Another round of staggered price increases is now under way in the coatings business, along with a push on cost efficiency.
Volumes held up better than profit
On the demand side, the news is decent. The domestic decorative paints business grew volumes 6.4% and value 14.5%, according to Business Standard. Overall domestic coatings, which adds industrial paints, grew 16.4% in value and 6.8% in volume. And the company itself called July-September a seasonally softer quarter.
The international business was the standout. Net sales there rose 29.5% to ₹1,095.6 crore, and about 24% in constant currency terms, per ET. Home décor was mixed: bath fittings sales rose 19% and swung to a ₹9 crore pre-tax profit from a ₹4 crore loss, but the kitchen business, despite 13% sales growth to ₹110 crore, saw its pre-tax loss widen to ₹8 crore.
Dividend record date
The record date for the ₹5.75 interim dividend is Wednesday, November 4, 2026, and the payout is due by Friday, November 13, ET reported. You need to hold the shares on the record date to be eligible.
What we’d watch next
The story here is pricing power versus input costs. Volumes are growing, so demand isn’t the problem. The question is whether the next round of price hikes can rebuild margins without denting those volumes through the festive season the company says it is now entering. It’s a similar squeeze to the one we saw in HUL’s Q2 results. For the rest of this week’s reporting line-up, see our Q2 results calendar, and our guide on how to analyse quarterly results walks through reading a results table like this one.
Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before making any investment decision.
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