India's largest paints player Asian Paints expects muted growth in the short-term as weak demand conditions and falling volumes weigh on the industry. Speaking in the post-earnings analyst call, CEO Amit Syngle noted that Asian Paints is projecting single-digit volume and value growth, calling it a 'realistic' expectation as a result of the current demand environment.
For the quarter ended June 30, Asian Paints reported 4.2 percent volume growth in the decorative and industrial segment combined, as against 7.4 percent volume growth seen in the same quarter last year.
However, on a sequential basis, demand conditions have seen a slight uptick. The domestic decorative business saw volumes growth at 3.9 percent during the quarter, as compared to 1.8 percent in the March quarter and 1.6 percent in the December quarter.
However, in June and July, the strong monsoon as posed as a dampener for demand. Amit Syngle noted that June ended on a weak note, largely due to early and intense monsoons, which also had a disruptive impact on demand. Further, strong rainfall has also affected demand activity in July. As a result, Syngle noted that demand trends so far in Q2 are largely in line with what Asian Paints saw in Q1, "no adverse, no very positive things."
Looking ahead, Q3 could be more impacted, especially October, due to fewer retailing days. "Diwali falls earlier, in October this year, so the retail season may shift earlier to September. We’re still hopeful for a stronger September, provided the monsoon doesn’t disrupt momentum further," said Syngle.
Across various geographies in India, the Northwest and Eastern segments have outperformed others. "I think the Southern geographies have been affected from the demand point of view," the chief added, "But this is something which we think is a little bit of a short term phenomena."
Not just Asian Paints, but the entire paints industry has been fighting challenging demand conditions. "What is true for Asian Paints is true for the industry," quipped Syngle. The paints industry, as a whole, has not grown, and the outlook is not going to be different for other players, he added.
Asian Paints reported 6 percent decline in net profit at Rs 1,100 crore for the quarter ended June 30, 2025 as against Rs 1,170 crore a year ago. The firm's revenue fell marginally to Rs 8,939 crore in Q1FY26 as against Rs 8,970 crore in Q1FY25.
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