Asian Paints Reports 43% Profit Growth in Q2, Declares Dividend

Asian Paints Limited has released its financial results for the second quarter of the fiscal year 2026, which concluded on September 30, 2025. The company reported a significant year-on-year increase in consolidated net profit, which rose by 43 per cent to ₹993.6 crore, compared to ₹694.6 crore in the same quarter of the previous year.

In tandem with these results, Asian Paints declared an interim dividend of 450 per cent, equating to ₹4.5 per share on shares with a face value of ₹1 each. The record date for determining eligible shareholders has been set for November 18, 2025, with payments expected to be made on or after November 27, 2025.

Asian Paints Q2 FY26 Results

The company’s consolidated net sales also saw a growth of 6.4 per cent year-on-year, reaching ₹8,513.7 crore in Q2 FY26, up from ₹8,003 crore during the same timeframe last year. Profit Before Depreciation, Interest, Tax, and Other Income (PBDIT) increased by 21.3 per cent to ₹1,503.4 crore, indicating enhanced cost efficiencies and effective pricing strategies. The PBDIT margin improved to 17.7 per cent in Q2 FY26, a notable rise from 15.5 per cent in the previous year. Profit before tax surged by 22.2 per cent to ₹1,391.5 crore.

Asian Paints Dividend Announcement

The interim dividend announcement signals the company’s confidence in its financial performance and commitment to returning value to shareholders.

Segment Performance

Asian Paints’ international operations contributed positively, with sales climbing 9.9 per cent to ₹846 crore, driven by robust performances in regions such as South Asia, the Middle East, and Africa. Profit before tax from international activities more than doubled to ₹76.4 crore from ₹34.7 crore a year earlier.

In the industrial coatings sector, both Asian Paints PPG and PPG Asian Paints reported strong growth. Asian Paints PPG’s sales increased by 10.2 per cent to ₹292.6 crore, while PPG Asian Paints enjoyed a 13.3 per cent rise, reaching ₹594.3 crore, fuelled by rising demand in the automotive and protective coatings sectors.

However, the company’s Home Décor division, which encompasses bath fittings, kitchens, and furnishings, faced challenges. Sales of bath fittings fell by 4.7 per cent, while kitchen business revenue dipped by 7.2 per cent. Despite these setbacks, Asian Paints noted that its Beautiful Homes stores continue to expand, indicating potential for future growth in this segment.

Market Reaction

Following the announcement of these results, shares of Asian Paints experienced a robust response, reaching a new 52-week high of ₹2,838.70, closing up 6.6 per cent at ₹2,832 on the National Stock Exchange. This rise in share price reflects investor confidence following the strong profit growth and the interim dividend declaration.

Looking Ahead

Amit Syngle, Managing Director and Chief Executive Officer of Asian Paints, stated, “This quarter has been marked by focused innovation and strong execution, which have resulted in impressive performance despite challenging market conditions.” He acknowledged the growth in domestic decorative business, which recorded a double-digit volume growth of 10.9 per cent, alongside a 6 per cent increase in value.

The company continues to navigate headwinds in its Home Décor segment but is optimistic about the future trajectory of its Beautiful Homes stores. Asian Paints remains committed to enhancing brand visibility and driving innovation to deliver sustained performance and create value for all stakeholders.

Market analysts have noted that Asian Paints shares have shown a strong performance over the past six months, rising by 20 per cent, significantly outperforming the broader Nifty index, which has gained nearly 8 per cent, and the Sensex, which has increased by 6 per cent.