Asian Paints reports strong Q2 volume growth, margin expansion

Asian Paints reported 10.9% volume growth in its Decorative Business (India) for Q2 FY26, with net sales increasing by 5.8% at the standalone level and 6.4% consolidated. This performance was supported by improved consumer sentiments, early festive season demand, and broad-based growth across urban and rural centers. Gross margins expanded by 270 basis points to 43.7% in Q2 FY26 standalone, aided by raw material deflation and sourcing efficiencies.

PBDIT grew by 21% standalone and 21.3% consolidated, with PBDIT margins reaching 18.5% standalone and 17.7% consolidated for Q2 FY26. The company also saw strong performance in its Industrial Business, with PPGAP revenue up 13% and APPPG revenue up 10% in Q2 FY26, both showing improved PBT margins.

The company declared an interim dividend of INR 4.50 per share for FY26. Outlook for Q3 FY26 includes expected demand improvement, continued momentum in industrial and international businesses, and stable raw material prices, though geopolitical uncertainty may impact pricing.