Asian Paints Q1 net profit climbs 40% as price hikes offset input-cost inflation

Asian Paints reported consolidated net profit of ₹1,539 crore in Q1 FY27, up 40% year on year, while revenue rose 18% to ₹10,542 crore. Roughly 12% price increases helped counter a 36% rise in raw-material costs, though White Teak and bath fittings sales declined.

— Source publishedWed, 29 Jul, 2026, 17:18 IST·First seen Wed, 29 Jul, 2026, 17:18 IST·Source Outlook Business

What happened

Asian Paints reported strong Q1 FY27 earnings as price hikes and cost control offset higher crude-linked raw-material costs. Decorative and industrial coatings

Key facts

  • Consolidated net profit rose 40% YoY to ₹1,539 crore
  • Consolidated revenue grew 18% YoY to ₹10,542 crore
  • Standalone revenue rose 17% to ₹9,183.4 crore
  • Standalone net profit increased 34% to ₹1,478.4 crore
  • EBITDA rose 33.5% to ₹2,169 crore
  • Raw-material costs increased 36% to ₹5,449.3 crore
  • Product prices were raised about 12%
  • Decorative volume growth was 9%; value growth was 16.6%
  • International sales rose 27.2% to ₹936.5 crore

Why this matters

Weakness in White Teak and bath fittings highlights an opportunity to reassess partnerships, product positioning, or targeted acquisitions in home-improvement adjacencies.

What to watch

  • Sequential decorative-paint volume growth versus revenue growth.
  • Gross-margin trend and management commentary on crude derivatives, titanium dioxide, solvents and packaging costs.
  • Any further price increase, dealer pushback or rise in discounts and incentives.
  • Market-share movement versus Berger Paints, Kansai Nerolac, Indigo Paints and regional brands.
  • Festive-season housing, renovation and rural-demand indicators.
  • White Teak and bath-fittings sales recovery, inventory levels and retail expansion pace.
  • Monitor whether management announces additional paint price hikes or targeted SKU-level increases.
  • Prioritize premium and waterproofing products, where pricing power and gross margins are stronger.
  • Use dealer incentives, painter engagement and smaller pack sizes to protect volumes in price-sensitive markets.
  • Reassess White Teak and bath-fittings inventory, store rollout and promotional plans after the sales decline.
  • Seek procurement savings, alternative formulations and supplier renegotiations to reduce raw-material exposure.