Asian Paints' FY26 not so rosy

Pale hues

- Pallavi Pengonda

Asian Paints Ltd is caught in a double whammy of weak demand and stiff competition from new and existing companies. This hurt the paint maker's crucial decorative paints business and FY25 ended up being one of its worst years in a long time.

Consolidated net profit after minority interest was down 33% year-on-year to ₹3,667 crore in FY25. Lower revenues with volume growth at 2.5% in the domestic decorative business, coupled with higher staff costs and other expenses, took a toll on profitability. Total operating revenue declined year-on-year in each quarter of FY25, leading to an overall 4.5% drop in full-year revenue. FY25 Ebitda margin shrank 365 basis points to 17.7%.

Volume growth for Q4FY25 came in at 1.8%, marking a third straight quarter of subdued performance. Demand in urban areas continued to be soft and there was downtrading to lower-price paints, leading to an adverse sales mix.