Asian Paints Q3 FY26: Profit Falls 4.8%, Revenue Rises 3.7%

• Consolidated PAT declines 4.8% YoY to ₹1,074 crore due to one-time charges

• Revenue rises 3.7% to ₹8,867 crore; EBITDA margin improves to 20.1%

• International business performs well, while home décor segments show mixed trends

Mumbai: Asian Paints on Wednesday reported its financial results for the third quarter ended December 31, 2025 (Q3 FY26), posting a 4.8% year-on-year decline in consolidated net profit at ₹1,074 crore, compared to ₹1,128.43 crore in the same period last year.

The drop in profit was largely attributed to exceptional items totaling ₹158 crore, along with a one-time gratuity-related expense of ₹63.74 crore, which weighed on the company’s bottom line during the quarter.

Despite the profit dip, the company delivered steady topline growth. Revenue from operations increased 3.7% to ₹8,867.02 crore, up from ₹8,549.44 crore in Q3 FY25. Operating performance also improved, with EBITDA rising 8.8% year-on-year to ₹1,781 crore, while margins expanded by 100 basis points to 20.1%.

Commenting on the quarterly performance, Managing Director and CEO Amit Syngle said the results reflected sustained momentum from focused growth initiatives, even as the broader market continued to face competitive pressure and subdued demand conditions.

Rural Demand Outpaces Urban Markets

During the post-earnings call, Syngle noted that October remained weak due to a shorter festive season and extended monsoon, but business picked up meaningfully in November and December, helping support overall Q3 volume growth.

He also highlighted a notable shift in consumption patterns, stating that rural markets performed better than urban centres, likely supported by favourable rainfall. According to him, both rural and urban demand showed improvement toward the end of the quarter, a trend the company expects to carry forward.

International Business Shows Resilience

Asian Paints’ international operations delivered a solid performance, with net sales rising 6.3% to ₹869.6 crore, driven primarily by strong contributions from Sri Lanka, UAE, and Ethiopia. On a constant currency basis, international sales grew 4.2%.

Profit before exceptional items and tax for the international segment stood at ₹76.6 crore, compared to ₹60.8 crore in the year-ago quarter, reflecting improved operational efficiency.

Mixed Performance in Home Décor Segments

The company’s Home Décor portfolio saw varied results.

• Bath fittings: Net sales declined 4.1% to ₹84 crore. However, the segment returned to profitability with a modest profit of ₹0.2 crore, compared to a loss of ₹7.4 crore last year.

• Kitchen business: Sales increased 2.6% to ₹105.4 crore, while losses narrowed to ₹4 crore from ₹5.4 crore in the corresponding quarter.

Overall, Asian Paints maintained stable operational performance amid challenging market conditions, supported by margin improvement and steady international growth, even as exceptional costs impacted quarterly profitability.