Asian Paints Ltd.Record Margins & Strong Volume Recovery

Asian Paints delivered an impressive Q4 FY26 with decorative volume growth of 12.4% and value growth of 10.2%, reflecting robust demand across both rural and urban markets.

The company achieved a record gross margin of 45.6% and PBDIT margin expansion of 260 basis points to 21.2%, while PAT grew 32.7% year-on-year excluding exceptionals. Management guided for 8-10% volume growth in FY27, maintaining an 18-20% PBDIT margin band despite facing approximately 20% input cost inflation. The strategic VAM-VAE backward integration project, a signature initiative with few global players in this space, will commence its first phase in H1 FY27, enhancing innovation capabilities and enabling green paint solutions.

New products now contribute 17% of revenues, demonstrating a strong innovation pipeline supported by over 160 patents. The company added 6,000-plus retail touchpoints during FY26 and is witnessing early positive demand signals in April-May, though competitive intensity remains elevated across the industry.