Mumbai: Asian Paints Ltd. (APL) reported a strong margin-led performance in Q2FY26, even as overall value growth in the paints industry remained muted. The company delivered healthy volume growth of 10.9%, driven largely by internal execution strategies, while value growth stayed soft at ~3.5-4%, reflecting broader sectoral weakness.
APL maintained robust gross margins (~43%) and PBDIT margins of over 18% across both standalone and consolidated operations. The management attributed this resilience to a richer premium product mix, efficient cost structures, and strong traction in new chemical capacities that are expected to further strengthen the margin profile next year.
The company’s international business recorded a 10% constant-currency (CC) growth, coupled with sharp profitability improvements, clocking 9% PBT margin. Industrial JVs also posted impressive numbers, PPGAP grew 13% with a 17.3% PBT margin, while APPPG grew 10% and delivered 8.9% margin, signalling broad-based recovery across segments.
However, the home décor portfolio remained weak, with kitchen and bath categories underperforming. Weatherseal was the only segment that reported healthy growth. APL continues to expand its presence through branded services such as Beautiful Homes, Total Assure and MetaCare, alongside strengthening regional markets and B2B channels.
More than 15% of Q2 revenue came from new products, with waterproofing and interior solutions showing strong traction. On the capex front, the company confirmed that its white cement plant is now operational, while the VAM/VAE facility will be commissioned in Q1 next year, creating a significant margin moat.
For FY26, Asian Paints retained its guidance of mid-single-digit value growth, higher volumes, and 18-20% margin sustainability, signalling confidence in continued operational strength despite a tepid industry backdrop.
