India's Asian Paints maintains FY27 growth target, sees no immediate price hikes (updated)

Asian Paints

29/07/2026 09:52

Rewrites throughout with details from earnings call
Reliance on crude oil-linked products remains key concern, says MD
Q1 profit beats view, margins expand
Company to drive cost efficiencies through premiumisation
By Urvi Dugar
BENGALURU, July 29 (Reuters) - India's Asian Paints ASPN.NS on Wednesday maintained its fiscal 2027 volume growth guidance of 8% to 10% and ruled out any immediate price hikes despite volatile geopolitical conditions that have impacted raw material costs.
"Ideally, we would not like to take any increases going forward, unless the situation really becomes alarming... in certain categories," managing director Amit Syngle said.
The company's reliance on crude oil-linked products remains a key concern amid ongoing price volatility, he added. 
Indian paint manufacturers including Asian Paints — the country's largest paint maker — have been grappling with higher raw material costs as the Middle East conflict keeps crude oil prices elevated.
 Asian Paints said it would drive cost efficiencies through premiumisation to protect margins and absorb external pressures. 
Earlier this month, the company raised prices by about 12%. It had also hiked rates earlier in the year, according to Macquarie dealer checks.  
Asian Paints' consolidated first-quarter profit of 15.39 billion rupees ($161 million) beat analysts' estimates of 12.02 billion rupees, according to LSEG data, as the sharp price hikes helped offset higher costs. 
Its profit margin before depreciation, interest, tax and other income expanded to 22% during the quarter compared with 19.4% a year earlier.
Paint makers are also facing tougher competition following the entry of Grasim Industries' GRAS.NS Birla Opus, which has intensified pricing and market-share pressures.
"Competitive intensity is at an all-time high, leaving little room for complacency," Syngle said.
First-quarter volume growth in Asian Paints' key domestic decorative business, a metric closely watched by investors amid concerns over price hikes, rose 9% from a year earlier. Rural markets continued to grow faster than urban ones.
Revenue from operations during the quarter rose 18% from a year earlier, while total expenses jumped nearly 14%.
     
($1 = 95.5875 Indian rupees)

(Reporting by Urvi Dugar in Bengaluru; Editing by Nivedita Bhattacharjee and Jonathan Ananda)
((UrviManoj.Dugar@thomsonreuters.com; +91 9558725583;))