Consumer – Sector Update – Demand remains muted, 2H Sept key to watch out for
Published on 16 Sep 2026
We remain cautious on the near-term paints demand outlook, based on our latest channel checks. Secondary sales remain subdued across regions and brands, including Asian Paints and Birla Opus, while dealers continue to focus on inventory correction following elevated stocking over the past two quarters. The second half of September remains a key monitorable as festive-led stocking is expected to commence and weaker monsoon conditions, aided by El Niño are likely to support a pickup in painting activity. The pace and sustainability of the recovery in late Sept will be critical in assessing demand trends in coming quarters.
We believe the combination of channel destocking, muted premium/luxury demand and elevated competitive intensity might keep near-term volume growth under pressure across brands.
