Asian Paints open to further price hikes if inflation rises, says CEO Amit Syngle

Our pricing decisions are based on our margins, we do not base it on our competition, said Asian Paints' CEO.

India’s largest paints company - Asian Paints - has indicated that it is open to further price hikes, should the inflation rise further, CEO Amit Syngle said on July 17.

“One worry for the firm is inflation, and we have already taken a price increase in response to that. We are anticipating inflation of 1.5 percent in the upcoming quarter, and as a result, we will have to take further price increases,” Syngle said in the Asian Paints earnings call for the first quarter of FY25.

Compared to our competition, we feel our pricing is at a premium given the price elasticity. Our pricing decisions are based on our margins, and Asian Paints does not base it on competition, he added.

As we implement price hikes, we see the gap between value and volume growth to be around five to six percent, Syngle said. Volume growth for the upcoming quarter is likely to be in double-digits.

Also Read | Asian Paints, rival Berger hike prices across portfolio, shares upbeat

Asian Paints reported a 25 percent on-year fall in net profit for the quarter ended June 2025 to Rs 1,170 crore on July 17. The firm’s revenue from operations also fell short of analysts’ estimates, declining more than 2 percent on-year to Rs 8,970 crore.

India’s largest paints player also confirmed that it has taken a price hike of around one percent across its portfolio, which will come into effect from July 22.

This will also give headroom for increased brand investment, especially with new entrants like Birla Opus, said domestic brokerage Nuvama Institutional Equities.

“We expect other players also to follow suit. This is a positive move for incumbents to fight Birla Opus by slightly increasing A&P spends and also to keep margins in a healthy range. This also demonstrates that the pricing power of the Paint industry remains intact even after the entry of a major player, Birla Opus,” said Nuvama.

“Furthermore, a significant portion (30 percent) of the market remains unorganized, presenting a huge headroom for large companies,” added the brokerage.