Asian Paints , India's leading paint and decor company, has released its financial results for the first quarter, revealing a mixed performance amidst challenging market conditions.

Financial Highlights

Decorative Business Performance

The company's Decorative Business in India showed resilience with a volume growth of 3.90%, despite a revenue decline of 1.20%. This performance was achieved in a subdued demand environment, affected by macro-economic uncertainties and early monsoons. The revenue decline was attributed to a shift in product mix.

Segment-wise Performance

International Business

Registered a strong value growth of 8.40%, driven by growth in Asian markets, UAE, and Egypt. In constant currency terms, sales increased by 17.50%.

Home Décor Business

Experienced a de-growth, reflecting pressure on household disposable incomes.

Industrial Coatings

The revenues grew by 8.80%, supported by good performance in Auto & Protective coating segments.

Management Commentary

Amit Syngle, Managing Director & CEO of Asian Paints, commented on the results: "The paint industry experienced a slight uptick this quarter, driven by marginally improved demand from urban centres, despite monsoons slowing the momentum in June." He added, "Confident in the long-term growth potential of home décor and paints industry, we continue to drive innovation and strengthen our brand saliency as we navigate the current demand challenges."

Market Challenges and Outlook

Asian Paints expects strong competition to persist in Q2, as noted by the company's Co-CEO. However, there are initial signs of recovery in demand, particularly in urban markets. The company plans to monitor market trends for a month before making any decisions on pricing changes.

Concerns Over IT Sector Impact

The company's Co-CEO has raised concerns about the potential impact of job cuts in the IT sector on consumer demand. This highlights the broader economic factors that could influence the paint and decor market in the coming quarters.

Strategic Moves

1. On April 28, Asian Paints infused ₹100.00 crores as equity share capital into Asian Paints (Polymers) Private Limited, a wholly-owned subsidiary engaged in manufacturing Vinyl Acetate Monomer (VAM) and Vinyl Acetate Ethylene Emulsion (VAE).

2. On June 27, the company acquired the remaining 40% stake in Obgenix Software Private Limited (White Teak) for ₹188.00 crores, making it a wholly-owned subsidiary.

As Asian Paints navigates through a challenging market environment, the company's focus on innovation, brand strength, and strategic investments in subsidiaries demonstrates its commitment to long-term growth in the paint and decor industry.

Asian Paints , India's leading paint and decor company, has received approval for its plan to merge with Asian Paints (Polymers), marking a significant consolidation move within the group structure. This strategic decision comes as the company navigates through a challenging economic landscape, as reflected in its recently announced financial results for the first quarter of fiscal year 2026.

Merger Approval

The Board of Directors of Asian Paints Limited, in a meeting held on July 29, 2025, approved the Scheme of Amalgamation between Asian Paints (Polymers) Private Limited (AP Polymers) and Asian Paints Limited. AP Polymers, a wholly-owned subsidiary of Asian Paints, was incorporated on January 11, 2023, with the specific objective of manufacturing Vinyl Acetate Monomer (VAM) and Vinyl Acetate Ethylene Emulsion (VAE) for in-house consumption by Asian Paints.

The merger is expected to bring several benefits to the company:

1. Unlocking synergy benefits in back-end functions such as procurement, logistics, supply chain, and technology operations.
2. Reduction in legal and regulatory compliance complexities.
3. Streamlining of operations and alignment of business structure with its intended purpose.

It's important to note that this merger will not involve any cash consideration or change in the shareholding pattern of Asian Paints Limited, as AP Polymers is already a wholly-owned subsidiary.

Q1 FY'26 Financial Performance

Alongside the merger announcement, Asian Paints released its financial results for the quarter ended June 30, 2025, revealing a mixed performance:

The company faced headwinds due to subdued demand and macro-economic uncertainties:

1. Decorative Business in India registered a volume growth of 3.9% but saw a revenue decline of 1.2%.
2. Home Décor categories experienced a de-growth, attributed to pressure on household disposable incomes.
3. International business was a bright spot, registering a value growth of 8.4%, driven by strong performance in Asian markets, UAE, and Egypt.

Segment Performance

1. Industrial Coatings: Revenues grew by 8.8%, with strong performance in Auto & Protective coating segments.
2. Bath Fittings: Sales decreased by 5.1% to ₹88.70 crores.
3. Kitchen Business: Sales decreased by 2.3% to ₹98.10 crores.
4. White Teak and Weatherseal: White Teak sales decreased by 31.9%, while Weatherseal sales increased by 32.2%.

Amit Syngle, Managing Director & CEO of Asian Paints Limited, commented on the results: "The paint industry experienced a slight uptick this quarter, driven by marginally improved demand from urban centres, despite monsoons slowing the momentum in June. Confident in the long-term growth potential of home décor and paints industry, we continue to drive innovation and strengthen our brand saliency as we navigate the current demand challenges."

The merger approval and these financial results underscore Asian Paints' efforts to streamline operations and navigate through challenging market conditions. As the company moves forward with its consolidation plans, it remains focused on innovation and strengthening its market position in the paint and decor industry.