Mumbai, India – Asian Paints Ltd. announced a significant financial performance for the second quarter of fiscal year 2027, with consolidated net profit increasing by 7.45% year-on-year. The paint and coatings giant reported a net profit of Rs 1,067.63 crore for the September quarter, up from Rs 993.59 crore in the corresponding period last year.
Revenue from operations also saw robust growth, rising 16.94% to Rs 9,976.51 crore in Q2 FY27, compared to Rs 8,531.27 crore in Q2 FY26. However, on a sequential basis, profit declined by 30.64% from the June quarter's Rs 1,539.25 crore, and revenue also saw a quarter-on-quarter dip from Rs 10,541.94 crore.
Strong Performance Across Key Segments
The company's domestic decorative business in India recorded healthy growth, with volumes increasing by 6.4% and value growing by 14.5% during the quarter. The broader domestic coatings business reported a value growth of 16.4%, bolstered by sustained strength in industrial coatings, which positively impacted the decorative segment's trajectory.
Asian Paints' international business demonstrated strong expansion, with net sales growing by 29.5%, or 23.7% in constant currency terms. This growth was consistent across all regions where the company operates.
Strategic Expansion and Operational Challenges
During the quarter, Asian Paints achieved a key milestone by commissioning Phase 1 of its vinyl acetate ethylene (VAE) plant at Dahej. The company stated that this new facility is expected to drive future innovation and enhance its product capabilities.
Amit Syngle, Managing Director and CEO of Asian Paints, acknowledged the challenging operational landscape. He noted, “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.” Syngle added that the company “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.” He also indicated that further staggered price increases are being implemented in the coatings business to counter persistent inflationary pressures, alongside intensified cost-efficiency initiatives.
Interim Dividend Announced
In addition to its financial results, Asian Paints declared an interim dividend of Rs 5.75 per equity share, based on a face value of Re 1. The record date for this interim dividend has been set for November 4, 2026, with the payment scheduled to be made on or after November 13, 2026.
At the time of this report on Thursday, shares of Asian Paints were trading 1.31% lower at Rs 2,255.