Asian Paints shares experienced a decline of 2.13%, with the stock closing at Rs 2,646 amid increased trading volume. The Nifty 50 constituent saw heightened market activity during the trading session.

Quarterly Financial Performance

Asian Paints reported its financial results for the quarter ending September 2025, demonstrating mixed performance across key metrics.

The company's quarterly revenue stood at Rs 8,531.27 crore with a net profit of Rs 979.93 crore and earnings per share of 10.37 for the September 2025 quarter.

Annual Financial Results

The company's annual performance for FY25 showed a decline compared to the previous fiscal year.

Key Financial Ratios and Metrics

Asian Paints' financial ratios for FY25 reflected the company's operational performance across various parameters.

Corporate Actions and Dividends

The company announced several corporate actions and dividend distributions:

• Interim Dividend: Rs 4.50 per share (450%) with effective date of November 18, 2025
• Final Dividend: Rs 20.55 per share (2055%) announced on May 8, 2025, effective June 10, 2025
• Stake Dilution: Reduced stake in Asian White Cement Holding Limited as of January 16, 2026
• Results Announcement: Financial results for quarter and nine-month period ended December 31, 2025, announced on January 27, 2026

Historical Corporate Actions

Asian Paints has undertaken significant corporate actions in the past, including a 1:2 bonus share issue on August 22, 2003, and a stock split on July 30, 2013, where the face value was reduced from Rs 10 to Rs 1.

Market Sentiment

Investor sentiment on Asian Paints is classified as Very Bearish based on market analysis as of January 22, 2026. The stock's decline occurred alongside increased trading volume, indicating active participation from market participants.

Asian Paints is expected to deliver a stable performance in the December quarter, with better volumes and margin improvement partially countered by weak pricing and subdued demand conditions. According to analyst projections, the paint major is likely to show modest but steady growth across key financial metrics.

Revenue Growth Remains Modest

Brokerages largely agree that revenue growth in Q3 will stay modest despite improving volume momentum. The consensus view suggests mixed factors influencing topline performance:

Nuvama remains particularly cautious, citing persistent pricing pressures due to faster growth in lower-priced categories such as putty and construction chemicals. In contrast, Motilal Oswal forecasts relatively stronger growth supported by a weak base in the year-ago period.

Volume Recovery Drives Performance

Volume growth is expected to be the key positive factor in Q3, with most brokerages projecting domestic decorative paint volumes to grow in high single digits to low double digits:

• Kotak Equities: Around 8% volume growth
• Systematix: Closer to 10% volume growth
• Motilal Oswal: About 12% YoY volume growth

However, the gap between volume and value growth remains concerning. Several brokerages highlight consumer downtrading and a shift towards lower-priced products, which continues to pressure pricing. Nuvama notes that negative pricing and adverse mix continue to weigh on value growth, even as volumes recover from last year's lows.

Margin Expansion Expected

The most significant positive development is likely to be margin expansion, driven by favourable raw material costs and operational efficiencies:

Lower crude oil and titanium dioxide prices, along with operating leverage, are expected to support both gross and EBITDA margins. Kotak Equities notes that margin improvements will be aided by benign raw material environment and sourcing efficiencies, though partly offset by higher advertising and sales promotion spends.

Subsidiary and B2B Segment Outlook

Subsidiary performance is expected to remain steady but not serve as a major growth driver. Kotak Equities models low single-digit YoY growth for subsidiaries, similar to the September quarter performance.

The B2B segment provides a bright spot, expected to grow in double digits supported by government capital expenditure and infrastructure activity. This growth could help offset weakness in certain retail segments. Nuvama highlights that while exterior paint demand slowed due to unseasonal rains in October, this represents largely deferred demand that could shift to Q4.

Key Factors to Monitor

Investors will closely watch management commentary on several critical aspects including demand revival trends, competitive intensity in the market, pricing strategy adjustments, and the sustainability of margin gains going forward.