As brokerages examined Asian Paints’ earnings for the October-December quarter of the current fiscal year 2026, the company’s shares fell by about 7% on January 28. Early on Wednesday, the paint manufacturer’s shares fell to Rs 2,451 a share. The stock is at its lowest point since October of last year.
Q3 Results for Asian Paints:
Asian Paints announced a consolidated net profit of Rs 1,060 crore for Q3 FY26 on January 28. This represents a 4.6 percent year-over-year (YoY) decrease from the net profit of Rs 1,110.48 crore reported in Q3 FY25. However, this includes extraordinary items of Rs 157.61 crore because of labor code and impairment loss after Obgenix Software Private Limited (‘White Teak’) was acquired. The firm’s revenue from operations meanwhile rose around 4 percent YoY to Rs 8,867.02 crore. Consolidated net sales increased 3.9 percent YoY to Rs 8,849.7 crore during the quarter under review.
Asian Paints by Motilal Oswal:
Asian Paints, according to Motilal Oswal, gave a “lacklustre performance” since growth delivery remained weak despite a solid foundation and several initiatives. According to the brokerage, “a shortened festive period and a protracted monsoon did weigh on 3Q performance and further postpone demand recovery.”
“The management’s remarks regarding the revival of demand were unimpressive, particularly in light of the positive remarks made following 2QFY26. In the near future, APNT anticipates value growth of about 5% and volumes in the 8–10% range. Nevertheless, because to formulation and sourcing economies, management was able to stick to its EBITDA margin target of 18–20%. We project a 19% EBITDA margin for FY27/FY28E and a 10% sales CAGR for FY26-28E,” Motilal continued.
Motilal anticipates a limited near-term growth outlook due to competition pressure and a slower demand recovery. “We will keep an eye on whether the recovery pace quickens in the upcoming holiday quarters, though, as the paint category benefits from pent-up demand. To counteract competitive pressure, the company is concentrating on product innovation, brand salience, regionalization, and execution excellence,” it continued. Over FY26–28E, Motilal reduced its EPS projections by 1-3%. With a target price of Rs 2,950 per share, which suggests an upside potential of over 12.5 percent over the stock’s prior closing price, it reaffirmed its “Neutral” rating on the stock.
Asian Paints and JM Financial:
The company’s Q3 results were slightly below expectations, according to JM Financial. “Despite a weak base, decorative volume/value increase of 7.9%/2.8% YoY was below ours and the consensus expectation due to shorter festivities (which affected October sales, while November/December saw higher growth) and longer monsoons. Management continues to be cautious about demand trends: a) believes that mid-single-digit sales growth is reasonable in the near future, driven by volume growth of c.8–10% and negative price/mix impact of c.4–5% (similar to trends seen in 2Q/3Q); b) believes that industry growth will be soft for some time due to a decrease in painting frequency and occasion-led painting as well as a shift in consumer spending toward other discretionary items. Furthermore, the negative mix impact (c.4-5%) is expected to continue for the upcoming quarters (percolating into FY27E) based on current trends.
Asian Paints CLSA:
With a target price of Rs 1,875 per share, CLSA maintained a “Underperform” call on Asian Paints’ shares. This suggests that the stock could drop more than 28.5 percent from its previous closing price. According to the international stockbroker, the company’s standalone volume rise of 7.9 percent was consistent with an earlier holiday season, but its consolidated revenue growth was 2 percent behind expectations. In order to account for the continued disparity between revenue and volume growth, the FY26–28 earnings estimate was reduced by 0–7%The FY26–28 earnings estimate was lowered by 0–7% to reflect the ongoing discrepancy between revenue and volume growth.
Asian Paints and HSBC:
HSBC lowered its target price to Rs 2,900 per share and downgraded Asian Paints’ shares to “Hold.” This suggests a possible increase of almost 11% above the previous closing price. According to the international brokerage, the company’s volume and revenue development in Q3 of FY26 was unsatisfactory. It stated that comparatively weaker trends in retail demand might last longer.
