Asian Paints Q2 Results: Net profit rises 7% YoY to Rs 1,068 crore; firm announces Rs 5.75/share dividend
Asian Paints Q2 Results: The paint maker reported a 7% year-on-year rise in Q2 FY27 consolidated net profit to Rs 1,068 crore, while revenue grew 17% to Rs 9,977 crore. The company announced an interim dividend of Rs 5.75 per share, with November 4 set as the record date, even as shares fell 2%.
Asian Paints on Thursday reported a consolidated net profit of Rs 1,068 crore for the second quarter of the ongoing financial year 2027, marking more than 7% year-on-year jump from Rs 994 crore in the same period last year, along with an interim dividend of Rs 5.75 per share for its shareholders.The paint-maker’s revenue from operations increased around 17% YoY to Rs 9,977 crore during the July-September quarter of FY27, from Rs 8,513 crore reported in the corresponding quarter of FY26.
The shares of the company traded 2% lower at Rs 2,255 apiece after the release of the results.Asian Paints’ consolidated total expenses rose a little over 19% YoY to Rs 8,789 crore during the quarter under review, driven by a 35% surge in cost of materials consumed. Its PBDIT (Profit before depreciation, interest, tax and other income) increased nearly 4% to Rs 1,557 crore from Rs 1,503 crore a year-ago.Record date for Asian Paints dividendAsian Paints has declared an interim dividend of Rs 5.75 per share of Re 1 face value for FY27, with November 4 (Wednesday) set as the record date to determine eligible shareholders.
The stock has a dividend yield of 1.23%, according to data on Trendlyne.How did Asian Paints' segments perform in Q2?Asian Paints said its international business saw nearly 30% YoY growth in net sales to Rs 1,096 crore, with strong growth registered across all regions. In constant currency terms, its international net sales increased around 24%.In the home decor business, bath fittings segment saw 19% increase in net sales while the company reported profit before tax of Rs 9 crore, as against a loss of Rs 4 crore in the same period last year.
The kitchen business’ net sales grew 13% YoY to Rs 110 crore, while loss before tax widened to Rs 8 crore. White teak sales dropped 12% YoY while those for weatherseal dropped 2%.What Asian Paints management saidAsian Paints delivered a resilient performance in Q2, a seasonally softer quarter, sustaining the momentum of the last few quarters, said the company’s MD and CEO Amit Syngle. He highlighted that the company’s performance in the Middle East region also registered robust growth despite servicing challenges posed by the ongoing geopolitical situation.“The operating environment this year has been marked by sharp raw material inflation and material availability constraints driven by geopolitical disruptions, the full impact of which was felt in Q2.
We calibrated price increases and absorbed part of the cost inflation to protect consumer demand in this challenging environment, resulting in standalone EBITDA margins of 17.1% in a quarter that typically has a lower mix and margin profile,” Syngle said.With inflationary pressures showing little sign of easing, the executive added that Asian Paints is implementing a further round of staggered price increases in the coatings business, while intensifying its cost-efficiency initiatives.
“As we enter the festive season, we remain focused on brand building, innovation and service-led differentiation to sustain the growth momentum,” he concluded.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)(You can now subscribe to our ETMarkets WhatsApp channel)
