Nomura says India's Asian Paints leads price hikes, sees margin relief for sector

Asian Paints

20/04/2026 08:33

** Nomura says Asian Paints ASPN.NS announced a price hikes of 3%-5%, taking the cumulative price hike to high-single-digits to double-digits

** The increase comes as the ongoing supply chain disruptions led to increased costs of raw materials, packaging and logistics

** Nomura does not expect the hikes to hurt industry volumes since paint makes up nearly half the total cost of painting services, which should limit the impact on demand

** Better realizations are expected to support industry sales growth and margins, as cumulative price increases flow through

** Raw material inflation picked up sharply in March and April, likely to pressure industry margins temporarily in 1QFY27, Nomura says

** ASPN has started to lead price increases, with other listed paintmakers expected to follow

** Nomura has "buy" rating on the sector

** YTD, ASPN down 11%, Berger Paints India BRGR.NS falls 12.7%, Grasim Industries GRAS.NS down 3.8%, and Kansai Nerolac Paints KANE.NS declines 13.7%

 (Reporting by Yagnoseni Das in Bengaluru)

 ((Yagnoseni.Das@thomsonreuters.com;))