Raw material costs stay soft, no pricing pressure expected
Asian Paints posted 10.9% volume growth and 6% value growth, a performance Syngle described as “strong and broad-based.”
He emphasized there is no immediate pricing pressure, thanks to a 1.6% deflation in raw material costs during the quarter.
“Raw material prices have been benign, and we’re not seeing any pressure going forward,” Syngle said.
This stability is expected to help Asian Paints maintain its pricing strategy without needing hikes or concessions.
Margins strengthen; Full-year guidance retained
Margins expanded significantly during the quarter:
Standalone margins: 18.5%
Consolidated PBT margins: 17.7%
Gross margins: approx. 43%
Syngle attributed the margin strength to a healthy product mix and favorable input costs.The company retained its 18–20% full-year margin guidance, calling it “realistic and sustainable.”
Uneven monsoons hit exterior paints, but rural and urban demand steady
Prolonged monsoons through October affected the exterior paints category, but Asian Paints offset the impact through strong execution, regional initiatives, and B2B momentum.
Syngle noted that rural and urban demand grew at similar levels, with no major divergence.
“Demand conditions weren’t great, but growth remained broad-based across geographies,” he said.
International business grows 10% despite African currency pressures
Asian Paints’ international operations saw 10.5% growth in constant currency terms, led by strong performance in Nepal and Sri Lanka, growth in UAE and double-digit volume growth across Africa, despite currency devaluation in Ethiopia
The company expects currency conditions to stabilize over the coming six months.
Kitchen & bath see weakness, but recovery expected in H2
While the decor division’s retail stores performed well, the kitchen and bath segments saw a single-digit decline.
Syngle attributed the weakness to muted demand but remains optimistic:
“We expect a much better performance in Q3 and Q4 as demand recovers.”
Auto coatings in double digits; industrial segment faces pressure
The automotive OE coatings division continues to grow in double digits with strong mix and margin performance.
However, the industrial coatings division faces competitive pressures, particularly in powder coatings.
Despite this, Asian Paints aims to maintain current margins in industrial paints.
Defending market share: Innovation, regional playbooks, and retailer ROI
With competitive intensity rising in the paint industry, Asian Paints is doubling down on:
- Aggressive innovation and brand-building
- Regionalized strategies and hyperlocal marketing
- Strengthening retailer relationships with better ROI
Syngle said the company’s Q1 and Q2 performance shows these strategies are already paying off.
“We’ve grown ahead of the market. Our strategy gives us a strong footprint for the coming quarters.”
Asian Paints remains optimistic about the second half of the year, expecting recovery in decor segments, steady demand, and margin support from soft input costs.