Asian Paints Q3FY26 result: Profit falls 4.6% to ₹1,059 cr, revenue up 3.9%

Asian Paints attributed the decline in profit to exceptional items worth ₹157.61 crore, including a one-time expense of ₹63.74 crore due to the implementation of the Labour Code

Asian Paints on Tuesday reported a 4.6 per cent decline in its consolidated net profit to ₹1,059.9 crore in the third quarter of the financial year 2025-26 (Q3FY26). During the same period last year, the company reported a profit of ₹1,110.5 crore.

 

The company attributed the decline to exceptional items worth ₹157.61 crore, including a one-time expense of ₹63.74 crore due to the implementation of the Labour Code, which increased gratuity liability by ₹52.88 crore and compensated absences liability by ₹10.86 crore. Along with it, an impairment loss of ₹93.87 crore on intangible assets related to the acquisition of Obgenix Software (White Teak) increased the cost, the company said.

 

On a sequential basis, however, profit increased by 6.67 per cent year-on-year (Y-o-Y) from ₹993.59 crore.

 

The Mumbai-headquartered paint and decor company's revenue from operations for the quarter stood at ₹8,849.72 crore, up 3.85 per cent Y-o-Y and 3.95 per cent sequentially.

 

"We had a third consecutive quarter of good volume growth with our India Decorative Business delivering a robust 7.9 per cent volume growth in the quarter. The overall coatings business registered a 4.4 per cent revenue growth for the quarter with Decorative business revenue growth of 2.8 per cent. This performance for the quarter reflects the sustained momentum delivered through persistent actions across our identified growth initiatives even as the broader market faced persistent competitive intensity and subdued demand conditions," said Amit Syngle, managing director and chief executive officer (CEO) of Asian Paints.

 

The company’s profit before depreciation, interest, tax, other income, and exceptional items (PBDIT) grew 8.8 per cent to ₹1,781 crore in Q3FY26 from ₹1,636.7 crore in the same quarter last year. PBDIT margin as a percentage of net sales also improved to 20.1 per cent, up from 19.2 per cent in Q3FY25, the company said.

 

Asian Paints segment-wise Q3 highlights Y-o-Y

• International Business: Net sales rose 6.3 per cent to ₹869.6 crore, driven by Sri Lanka, UAE, and Ethiopia operations.
• Bath Fittings: Net sales declined 4.1 per cent to ₹84 crore.
• Kitchen Business: Net sales increased 2.6 per cent to ₹105.4 crore.
• White Teak: Net sales grew 12.4 per cent to ₹29.2 crore.
• Weatherseal: Net sales surged 58.6 per cent to ₹18.7 crore.
• APPPG: Net sales rose 16.5 per cent to ₹334.7 crore.
• PPGAP: Net sales increased 16.9 per cent to ₹713.3 crore.

Shares of Asian Paints were trading down 2.6 per cent at ₹2,630 apiece on the BSE at 2.55 pm on Tuesday.