Asian Paints Earnings Summary — Q4 FY2026
Asian Paints Delivers Improved Margins and Steady Q4 Performance Amid Sector Competition
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 4 consecutive quarters.
- Revenue of ₹10,542 Cr is 17.9% higher year-on-year.
- Revenue has compounded at 8.7% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹1,539 Cr is 40.0% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 9.4% annualised across the period.
- Operating margin stands at 20.6% in Q1 FY2027.
- Operating margin expanded by 239 bps year-on-year.
- Over the last two years operating margin has expanded by 169 bps.
- PBT margin is 19.9%.
- Expense growth of 14.5% remained below revenue growth of 17.9%.
- Operating profit of ₹2,169 Cr is 33.5% higher year-on-year.
- Operating leverage continues to improve.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 77/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 10,542 | 9,247 | 8,867 | 8,531 | 8,939 | 8,359 | 8,549 | 8,028 | 8,970 | 8,731 |
| Expenses | Stable | 8,373 | 7,460 | 7,086 | 7,028 | 7,314 | 6,923 | 6,913 | 6,788 | 7,276 | 7,039 |
| Operating Profit | Accelerating | 2,169 | 1,787 | 1,781 | 1,503 | 1,625 | 1,436 | 1,637 | 1,240 | 1,694 | 1,691 |
| Operating Margin | Stable | 20.6% | 19.3% | 20.1% | 17.6% | 18.2% | 17.2% | 19.1% | 15.4% | 18.9% | 19.4% |
| Other Income | Volatile | 279 | 197 | 69 | 237 | 229 | -60 | 193 | 25 | 193 | 212 |
| Interest | Stable | 48 | 59 | 48 | 44 | 45 | 53 | 56 | 63 | 55 | 54 |
| Depreciation | Improving | 304 | 310 | 313 | 305 | 301 | 301 | 256 | 242 | 228 | 226 |
| Profit Before Tax | Improving | 2,096 | 1,614 | 1,489 | 1,392 | 1,509 | 1,022 | 1,518 | 959 | 1,604 | 1,624 |
| Tax | Improving | 536 | 429 | 415 | 373 | 392 | 321 | 390 | 265 | 417 | 349 |
| Net Profit | Accelerating | 1,539 | 1,172 | 1,060 | 994 | 1,100 | 692 | 1,110 | 695 | 1,170 | 1,257 |
| Net Margin | Improving | 14.6% | 12.7% | 11.9% | 11.7% | 12.3% | 8.3% | 13.0% | 8.7% | 13.0% | 14.4% |
Key Takeaways
- Revenue grew 5.9% YoY to ₹9,247 Cr in Q4 FY2026, marking a recovery from the softer performance in prior quarters.
- Operating Profit Margin (OPM) stood at 19%, consistent with the same quarter last year but down slightly from the 20% recorded in the third quarter.
- Net profit saw a recovery of 10.3% on a sequential basis, though it remains lower than the levels seen in FY2024.
- Borrowings significantly increased to ₹3,929 Cr in Mar 2026 from ₹2,474 Cr in Mar 2024, likely funding capex for the Home Decor segment.
- The 3-year sales CAGR has plateaued at approximately 1%, reflecting the impact of high base effects and new industry entrants.
- Management is successfully maintaining profitability above 1,100 Cr quarterly net profit despite aggressive entry by players like Grasim and JSW.
- Inventory turnover is slowing, evidenced by historical trends and stable but high overheads in the latest quarter.
- The regular dividend payout remains a core strength, with the payout ratio maintained above 60% for the full year.
Management Guidance
Management is pivoting toward a total 'Home Decor' ecosystem encompassing kitchen, bath, and lighting to offset the maturing domestic decorative paint market and maintain 'share of space'.
Sentiment Shift
Stable
While volume growth faces headwinds from new competition, the company demonstrates resilience in maintaining margins and generating steady free cash flow.
Outlook
The outlook remains stable but cautious as the industry transitions from high-growth to a more competitive, mature phase; success in the 'Home Decor' expansion will be critical for future valuation rerating.
From the Annual Report (Key Quotes)
“Management focuses on the shift from 'share of wall' to 'share of space' within the home.”
“Fundamental quality remains elite, but deceleration in volume growth signals a transitional phase.”
“The balance sheet remains robust with high ROCE, although competitive intensity is compressing historical valuation multiples.”
Official Quarterly Documents
This summary is AI-generated from Asian Paints's latest quarterly filing and earnings call. For informational purposes only — not investment advice.