Gloss fades as Asian Paints struggles with market share

FY26 margin outlook bleak; stock down 23% over past 3 years

- RAM PRASAD SAHU

The prospects of an improvement in its market share or margins appear dim in 2025-26 (FY26) for Asian Paints, the country's largest paint maker.

The company's January-March quarter (Q4) numbers for 2024-25 (FY25) were underwhelming, and the Street is not too optimistic about volume growth or profitability improvement due to muted demand, increased competition, and a lack of pricing power.

Given the multiple headwinds facing the sector, the stock has shed about 15 per cent over the past year and is down 23 per cent over the past three years.

The decorative paint market leader reported a 5 per cent year-on-year (Y-o-Y) drop in standalone revenue and a 4 per cent dip in consolidated revenue, both lower than estimates.

This marked the fifth consecutive quarter of revenue decline for the paint and décor major.

The company's revenue performance was impacted by weak demand conditions, compounded by downtrading and increased competitive intensity.