Asian Paints Q3FY26 profit falls 4.6% to Rs 1,060 crore on exceptional items

Asian Paints reported a 4.6% decline in consolidated net profit for the third quarter of FY26 at Rs 1,059.9 crore, compared with Rs 1,110.5 crore in the year-ago period.

The paint and décor major attributed the drop in profit to exceptional items worth Rs 157.61 crore during the quarter. These included a one-time expense of Rs 63.74 crore arising from the implementation of the Labour Code, which led to an increase in gratuity liability by Rs 52.88 crore and compensated absences liability by Rs 10.86 crore. The company also reported an impairment loss of Rs 93.87 crore on intangible assets related to its acquisition of Obgenix Software (White Teak).

On a sequential basis, however, profit rose 6.67% from Rs 993.59 crore in the previous quarter.

Revenue from operations for the quarter stood at Rs 8,849.72 crore, marking a 3.85% year-on-year (YoY) increase and a 3.95% sequential growth.

“We had a third consecutive quarter of good volume growth, with our India Decorative Business delivering a robust 8% volume growth in the quarter. The overall coatings business registered a 4.4% revenue growth, with Decorative business revenue growth at 2.8 per cent,” said Amit Syngle, managing director and CEO of Asian Paints. He added that the performance reflected sustained momentum from focused growth initiatives despite intense competition and subdued demand conditions in the broader market.

The company’s profit before depreciation, interest, tax, other income and exceptional items (PBDIT) rose 8.8% to Rs 1,781 crore in Q3FY26 from Rs 1,636.7 crore a year earlier. PBDIT margin improved to 20% , up from 19.2% in the corresponding quarter last year.

Asian Paints said it remains focused on maintaining growth momentum, even as competitive intensity is expected to stay elevated. The company said execution of key growth initiatives will remain a priority, while its international business and improved traction in the industrial segment are expected to support growth. Continued infrastructure spending in the upcoming Union Budget is also likely to aid demand, it added.