Asian Paints Q1FY26 (Consolidated) results

• Asian Paints Ltd’s (APL’s) revenue stood flat y-o-y at Rs. 8,939 crore, largely in line with our and average street expectation of Rs. 9,035 crore and Rs. 8,992 crore, respectively. Revenue was affected on account of shift in mix and subdued demand environment due to macro-economic uncertainties and early monsoon. Domestic decorative paints business registered 3.9% volume growth, against expectation of 2-3% volume growth. Bath fitting and kitchen business registered y-o-y revenue decline of 5.1% and 2.3%, respectively. White Teak reported y-o-y revenue decline of 31.9% y-o-y, while sales at Weatherseal increased by 32.2% y-o-y. Industrial businesses - PPG-AP and AP-PPG reported revenue growth of 11.1% and 4.8% y-o-y, respectively. International business grew by 8.4% y-o-y.
• Gross margin was steady at 42.7%, while OPM fell by 70 bps y-o-y to 18.2% due to increased competitive intensity, higher operating costs and negative operating leverage. OPM came in largely in line with our and average street expectation of 18.6%.
• Operating profit fell by 4.1% y-o-y to Rs. 1,625 crore. In line with decline in operating profit, adjusted PAT declined by 5.9% y-o-y to Rs. 1,117 crore, in line with our and average street expectation of Rs. 1,101 crore and Rs. 1,085 crore, respectively.
• View: We shall review our earnings estimates and shall come out with a detailed note soon. Currently we have a Hold rating on the stock. 

Results (Consolidated)                                                                         Rs. crore

Actual vs estimates                                                   Rs. crore