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Asian Paints on Tuesday reported its Quarter 1 results for the fiscal year 2026. The paint giant reported an 6% slump in its profit, while the revenue from operations marginally declined by 0.2% in Q1.
According to the stock exchange filing, Asian Paints' profit dropped to Rs 1,117.05 crore in the quarter ended on June 30, 2025, compared to Rs 1,186.79 crore in the corresponding quarter year ago period.
The revenue from operations dropped to Rs 8,938.55 crore YoY.
However, the profit after tax of the company surged by 59.5% on a sequential basis. The paint company's Q4 profit stood at Rs 700.83 between January and March 2025.
The company attributed the decline in profit to a subdued demand environment due to macroeconomic uncertainties and early monsoon.
Notably, there was some uptick in demand in the industry, driven by marginally improved demand from urban centres, said Amit Syngle, Managing Director & CEO of Asian Paints Limited.
The domestic Decorative paints business did relatively better compared to the earlier quarters, registering a volume growth of 3.9% and a revenue decline of 1.2%. The revenues from the Industrial Coatings business grew by 8.8%, on the back of good performance in the Auto & Protective coating segments," he added.
However, marketing investments and higher sales lowered the operating margins of the company during the quarter.
Asian Paint's 'Home Décor' categories saw a de-growth in Q1 FY2026 with pressure on household disposable incomes.
"The home décor business was slow due to subdued retail consumption however, the retail chain of Beautiful Homes Stores did well," the CEO stated.
Bath Fittings business sales decreased by 5.1% to Rs 88.7 crore from Rs 93.4 crore in Q1 FY26.
Kitchen business sales dropped by 2.3% to Rs 98.1 crore from Rs 100.4 crore.
However, the international business registered a value growth of 8.4% on the back of growth in Asian markets, UAE, and Egypt.
"On the international front, the portfolio delivered a strong performance with a revenue growth of 11.1%," Syngle added.