Asian Paints (APNT IN) – Q4FY26 Result Update – Steady growth outlook but margins have peaked out – HOLD
Published on 29 May 2026
We raise our FY27/FY28 EPS estimates by 4.2%/9.1% driven by 1) better than expected performance in 4QFY26/FY26 2) guidance of 8-10% volume growth (includes putty and construction chemicals) with margins of 18-20% and 3) sustained traction in both Auto and General industrial segments.
Although near term demand outlook remains positive, the heightened competitive scenario has not changed as players like Birla Opus, JSW Akzo and JK Cement continue to make inroads into decorative paints. We believe APNT is at cyclic peak in terms of margins with 45.8% standalone and 44.8% consol Gross margins, and sharp increase in input costs due to high crude prices. Standalone Revenues grew by 10.1% YoY to Rs79.2bn; Gross margins expanded by 60bps YoY to 45.8%; EBITDA margins expanded by 266bps YoY to 21.1%; Adj. PAT grew by 32.7% YoY to Rs11.6bn. Company declared final dividend of Rs23/share.
