Asian Paints Limited (NSE) ASIANPAINT today announced their financial results for the quarter ended December 31, 2025.
Asian Paints Limited, India’s leading paint and coatings giant, reported a mixed bag for the third quarter of fiscal year 2025-26 (Q3 FY26) on Tuesday. While the company maintained robust volume growth in its core decorative business, consolidated net profit took a hit due to significant one-time exceptional charges related to labor law changes and asset impairments.
Financial Snapshot: Q3 FY26 versus Q3 FY25
The company reported a consolidated revenue growth of nearly 4%, reaching ₹8,867 crore, driven by a healthy volume uptick in the domestic market. However, net profit slipped by 4.6% year-on-year to ₹1,060 crore.
Key Metrics
| Metric | Q3 FY26 | Q3 FY25 | YoY Change |
| Revenue from Operations | ₹8,867.02 Cr | ₹8,549.44 Cr | +3.71% |
| Consolidated Net Profit | ₹1,059.87 Cr | ₹1,110.48 Cr | -4.56% |
| PBDIT (Operating Profit) | ₹1,781.00 Cr | ₹1,636.70 Cr | +8.82% |
| PBDIT Margin | 20.1% | 19.2% | +90 bps |
| Decorative Volume Growth | 7.9% | — | — |
The “Exceptional” Drag on Profitability: The primary reason for the dip in the bottom line was a total of ₹157.61 crore in exceptional items. These charges stemmed from two main sources:
New Labor Code Implementation: A one-time expense of ₹63.74 crore was booked to account for increased gratuity and compensated absence liabilities under the government’s revised labor regulations.
Impairment Loss: The company recorded a ₹93.87 crore impairment loss on intangible assets associated with its acquisition of Obgenix Software (White Teak). Excluding these one-time hits, the company’s underlying profit showed resilience, with operating margins actually expanding by 90 basis points due to disciplined cost management and a favorable raw material environment.
Segment Performance Highlights
India Decorative Business: Delivered a robust 7.9% volume growth, though value growth remained lower at 2.8% due to pricing pressures and a shift in the product mix toward more economical segments.
International Business: Reported a 6.3% increase in net sales, with strong performances in the UAE, Sri Lanka, and Ethiopia offsetting macro-economic challenges in other regions.
Industrial Business: Remained a bright spot, with the PPGAP (Protective Coatings) segment growing 16.9% and APPPG (Powder Coatings) rising 16.5%.
Home Decor: Performance was mixed; while the Weatherseal segment surged by 58.6%, bath fittings witnessed a slight decline of 4.1%.
Strategic Outlook and Market Reaction
Amit Syngle, Managing Director & CEO, noted that the results reflect “sustained momentum” despite “persistent competitive intensity.” The industry is currently witnessing a massive shakeup with the rapid expansion of Birla Opus and JSW Paints’ recent majority acquisition of AkzoNobel India.
“We have intensified our brand-building efforts and introduced innovative product propositions. Our backward integration efforts and operational efficiencies enabled us to improve operating margins even as demand conditions remained subdued,” said Syngle.
Investor Takeaway
Investors reacted cautiously to the profit miss. Asian Paints shares fell as much as 6% intraday, closing at ₹2,628 on the NSE. Analysts suggest that while the company’s volume growth is encouraging, the “value versus volume” gap and heightening competition from deep-pocketed new entrants will be the key narrative to watch in FY 2027.