Asian Paints Financial Breakdown: Revenue, Profit, Ratios
Asian Paints is India's largest paint company and one of the most widely tracked consumer stocks on Dalal Street. It reported its September-quarter (Q2 FY27) results on 29 October 2026 — revenue up about 17% year-on-year, but margins under pressure from raw-material inflation. This breakdown looks at the company's five-year financial trend, its latest quarterly numbers, balance-sheet strength, key ratios, business segments, shareholding and how it stacks up against listed paint peers.
All figures below are consolidated, in ₹ crore, unless stated otherwise. FY refers to the financial year ending 31 March. Q2 FY27 is the quarter ended 30 September 2026.
Business Overview: What Asian Paints Does
Asian Paints, founded in 1942 and headquartered in Mumbai, is India's largest home-decor company. Its core business is decorative paints sold across India, supported by waterproofing, adhesives, wall coverings and home-décor products such as modular kitchens, sanitaryware and lighting. It also runs an international paints business across Asia, the Middle East and Africa, and an industrial coatings business through joint ventures. The company sells through one of India's deepest dealer networks in the paints trade, which is a key reason its decorative brand stays ahead of rivals.
As of 4 November 2026, Asian Paints had a market capitalisation of about ₹2.32 lakh crore and traded at a price-to-earnings ratio of roughly 47 times trailing earnings, a premium valuation the market has long assigned to the stock.
Q2 FY27 Results: Revenue Up 17%, Margins Slip
Asian Paints announced its Q2 FY27 results on 29 October 2026. The headline takeaway: demand recovered, but profitability did not keep pace with sales.
- Consolidated net sales: ₹9,977 crore, up 16.9% from ₹8,531 crore in Q2 FY26.
- Consolidated EBITDA (PBDIT): ₹1,557 crore, up 3.6% year-on-year; margin contracted about 201 basis points to 15.6% from 17.6%.
- Adjusted consolidated PAT: ₹1,068 crore, up 7.5% year-on-year. Standalone PAT rose 14.5% to ₹1,095.55 crore.
- Gross margin: contracted about 347 basis points to 39.7%, hit by steep raw-material cost inflation.
- India decorative business: volume growth of 6.4% and value growth of 14.5%, helped by price hikes taken during the year.
- Domestic coatings: value up 16.4% and volume up 6.8%; industrial coatings value up 31.8%.
- International business: net sales up 29.5% (23.7% in constant currency), though profit before tax fell 31%.
- Home décor: bath fittings revenue up 18.5% to ₹94 crore and back in profit; kitchen revenue up 13% to ₹110 crore but still loss-making.
- Interim dividend: the board declared ₹5.75 per share for FY27, with a record date of 4 November 2026 and payment on or after 13 November 2026.
- New capacity: the first phase of the vinyl acetate–ethylene (VAE) plant at Dahej began commercial production on 17 September 2026, a backward-integration step aimed at easing raw-material costs over time.
- Guidance: management retained its FY27 EBITDA margin guidance of 18–20% and expects gross margins of 41–43% in the second half of FY27.
In short, Q2 FY27 was a volume-and-price-led sales recovery with a margin squeeze — the central tension in the Asian Paints story right now.
Revenue Trend: FY22 to FY26
Asian Paints' consolidated revenue grew from ₹29,101 crore in FY22 to ₹35,584 crore in FY26, but the path was uneven: a strong FY23, a flat FY25, and a return to growth in FY26.
| Financial year | Revenue (₹ crore) | Operating profit (₹ crore) | Operating margin | PAT (₹ crore) | EPS (₹) |
|---|---|---|---|---|---|
| FY22 | 29,101 | 4,804 | 17% | 3,085 | 31.59 |
| FY23 | 34,489 | 6,260 | 18% | 4,195 | 42.81 |
| FY24 | 35,495 | 7,585 | 21% | 5,558 | 56.92 |
| FY25 | 33,906 | 6,006 | 18% | 3,710 | 38.23 |
| FY26 | 35,584 | 6,700 | 19% | 4,395 | 45.09 |
Revenue compounded at about 10% over five years, but only about 1% over the last three years — FY25's decline and FY26's modest 5% rebound show a business that has grown far more slowly since FY24 than it did in FY22–FY23. Profit has been more volatile: PAT jumped to ₹5,558 crore in FY24, fell 33% to ₹3,710 crore in FY25, then recovered 18.5% to ₹4,395 crore in FY26.
Profitability: Margins Recovering, Not Yet Back to Peak
Asian Paints' operating margin peaked at 21% in FY24, fell to 18% in FY25 as demand softened and competition intensified, and recovered to 19% in FY26. The Q2 FY27 margin of 15.6% is seasonally softer — the September quarter is typically weaker than the June quarter — but the year-on-year contraction of about 200 basis points shows raw-material inflation is still biting faster than price hikes can offset it.
Net profit margin in FY26 was about 12.4% (₹4,395 crore on ₹35,584 crore of revenue), broadly in line with the company's five-year median. Earnings per share followed the same arc as profit: ₹31.59 in FY22, ₹56.92 in FY24, ₹38.23 in FY25 and ₹45.09 in FY26.
Balance Sheet Strength and Cash Flow
Asian Paints runs a lightly leveraged balance sheet. At the end of FY26, reserves and surplus stood at ₹21,276 crore against equity capital of just ₹96 crore, and borrowings of about ₹3,929 crore — a debt-to-equity ratio of roughly 0.18 times. That low leverage is a structural feature of the business: dealers pay quickly, and the company converts a large share of operating profit into cash.
- Operating cash flow (FY26): ₹7,088 crore, up from ₹4,424 crore in FY25.
- Free cash flow (FY26): ₹5,604 crore, the highest in the five-year period shown.
- Investing outflow (FY26): ₹1,328 crore, reflecting capacity and backward-integration spending such as the Dahej VAE plant.
- Financing outflow (FY26): ₹2,377 crore, largely dividends.
- Cash conversion: operating cash flow was about 129% of operating profit in FY26, well above the company's recent trend.
Key Ratios
| Ratio (consolidated) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Operating margin | 21% | 18% | 19% |
| Net profit margin | 15.7% | 10.9% | 12.4% |
| Return on equity (ROE) | ~29% | ~19% | ~22% |
| Return on capital employed (ROCE) | 38% | 26% | 26% |
| Debt-to-equity | ~0.13 | ~0.12 | ~0.18 |
| Dividend payout | 58% | 65% | 61% |
| Stock P/E (4 Nov 2026) | — | ~47 | |
Returns remain strong in absolute terms — ROCE of 26% and ROE of about 22% in FY26 — but both are below the FY24 peak (38% and ~29%), reflecting the profit dip in FY25 and the capital being deployed in new plants. The dividend payout has stayed above 55% in every year from FY22 to FY26, underlining the company's record as a regular dividend payer.
Segment Split: Decorative Still Dominates
As per the company's FY26 integrated annual report, revenue breaks down into three broad categories:
| Segment (FY26) | Revenue (₹ crore) | Share of revenue |
|---|---|---|
| Decorative and home décor | 30,830.4 | 86.8% |
| International operations | 3,353.6 | 9.4% |
| Industrial operations | 1,332.4 | 3.8% |
The concentration is the point: nearly 87% of revenue comes from decorative paints and home décor in India, so the company's fortunes track Indian housing demand, repainting cycles and monsoon-season construction activity more than any other single factor. International (9.4%) is the growth diversifier, while industrial coatings (3.8%) is small but grew fastest in Q2 FY27.
Shareholding Pattern (September 2026)
| Shareholder category | Holding (Sep 2026) |
|---|---|
| Promoters | 52.65% |
| Domestic institutions (DII) | 20.50% |
| Foreign institutions (FII) | 13.76% |
| Public and others | 13.03% |
Promoter holding has been rock-steady at 52.63–52.65% for years. The notable shift is institutional: domestic institutions have raised their stake from 15.51% in March 2025 to 20.50% by September 2026, while foreign institutions have trimmed theirs from 17.02% in March 2023 to 13.76% — domestic buyers have absorbed much of the foreign selling.
Dividend History
Asian Paints has paid out 58–65% of profit as dividends in each of the last three years. For FY27, the board has already declared an interim dividend of ₹5.75 per share (record date 4 November 2026, payable on or after 13 November 2026). The final dividend for FY27 will be decided with the full-year results.
Peer Comparison: Asian Paints vs Berger, Kansai Nerolac, Indigo Paints
Asian Paints is roughly three times the size of its nearest listed rival by revenue, and it earns the highest absolute profit in the sector — but it also trades at the highest earnings multiple.
| Company (FY26) | Revenue (₹ crore) | PAT (₹ crore) | EBITDA (₹ crore) | EBITDA margin |
|---|---|---|---|---|
| Asian Paints | 35,584 | 4,395 | 7,428 | 20.9% |
| Berger Paints | 11,880 | 1,128 | 1,938 | 16.3% |
| Kansai Nerolac | 9,013 | 576 | 1,057 | 11.7% |
| Indigo Paints | 1,405 | 148 | 262 | 18.6% |
On profitability, Asian Paints' FY26 EBITDA margin of about 21% leads the peer set, ahead of Indigo Paints (~19%) and Berger (~16%), with Kansai Nerolac trailing at ~12% on its heavier industrial mix. On valuation, Asian Paints' P/E of ~47 is the sector's highest, versus about 45 for Berger, about 25 for Kansai Nerolac and about 27 for Indigo Paints — the market is paying a premium for Asian Paints' scale, returns and distribution reach.
Key Risks to Watch
- Raw-material inflation: crude-linked inputs drive gross margins; Q2 FY27 showed how quickly a cost spike compresses profit even when sales grow 17%.
- Competition: new entrants and aggressive pricing in decorative paints have already cost the company growth in FY25; price hikes only partly offset this.
- Demand cyclicality: with ~87% of revenue from Indian decorative demand, a weak housing or monsoon season hits volumes directly.
- International volatility: currency and geopolitical swings affect the overseas business, whose profit fell 31% in Q2 FY27 despite 29.5% sales growth.
- Valuation: at ~47 times earnings, the stock leaves little room for disappointment — any margin miss tends to be punished, as seen after the Q2 FY27 results.
- Execution on new capacity: the Dahej VAE plant and other capex must deliver the promised cost savings to restore margins toward the 18–20% EBITDA guidance.
FAQs
What is Asian Paints' revenue in FY26?
Consolidated revenue was ₹35,584 crore in FY26, up about 5% from ₹33,906 crore in FY25.
What was Asian Paints' profit in FY26?
Consolidated PAT was ₹4,395 crore in FY26, up 18.5% from ₹3,710 crore in FY25, but below the FY24 peak of ₹5,558 crore.
What were Asian Paints' Q2 FY27 results?
For the quarter ended 30 September 2026, consolidated net sales rose 16.9% to ₹9,977 crore, adjusted PAT rose 7.5% to ₹1,068 crore, and the EBITDA margin fell to 15.6% from 17.6% a year earlier.
What dividend did Asian Paints declare in Q2 FY27?
An interim dividend of ₹5.75 per share, with a record date of 4 November 2026 and payment on or after 13 November 2026.
Who owns Asian Paints?
As of September 2026, promoters held 52.65%, domestic institutions 20.50%, foreign institutions 13.76% and the public 13.03%.
Is Asian Paints debt-free?
Not entirely, but leverage is low: borrowings of about ₹3,929 crore at end-FY26 give a debt-to-equity ratio of roughly 0.18 times.
Conclusion
Asian Paints remains India's dominant paint company by a wide margin, with a strong balance sheet, best-in-sector margins and a consistent dividend record. The five-year trend, however, is more mixed than the brand suggests: revenue growth has slowed to about 1% compounded over three years, profit is still below its FY24 peak, and Q2 FY27 showed margins under real pressure from input costs. The investment case now hinges on whether volume growth, price hikes and backward integration at Dahej can restore margins toward the company's 18–20% EBITDA guidance without sacrificing market share.
Disclaimer: This article is for educational purposes only and is not investment advice. Figures are sourced from the company's filings, results coverage and financial data portals; readers should verify key numbers from the company's official disclosures before making any investment decision.
Sources: Asian Paints Q2 FY27 results coverage (October 2026), Asian Paints Integrated Annual Report 2025-26, Screener.in consolidated financials, ICICI Direct paints sector data.
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