Asian Paints Q3 FY26 Results: Sales Up 3.9%, Profit Falls 4.6%

Asian Paints Ltd. released a mixed report on Tuesday for the third quarter that concluded on December 31, 2025. While operational profit and consolidated net sales increased, net profit after minority interest decreased as a result of unusual items.

Asian Paints Q3 FY26 Financial Performance

Asian Paints Ltd. released a mixed report on Tuesday for the third quarter that concluded on December 31, 2025. While operational profit and consolidated net sales increased, net profit after minority interest decreased as a result of unusual items.

Consolidated net sales for the quarter were Rs 8,849.7 crore, up 3.9% from Rs 8,521.5 crore during the same time the previous year. From Rs 1,636.7 crore to Rs 1,781.0 crore, profit before depreciation, interest, tax, other income, and unusual items increased by 8.8%.

Margin Expansion and Profitability

During the quarter, the PBDIT margin increased to 20.1% from 19.2% a year earlier. Profit before unusual items and tax rose from Rs 1,518.2 crore to Rs 1,646.7 crore, a rise of 8.5%.

Due to unusual costs, net profit after minority interest fell 4.6% to Rs 1,059.9 crore from Rs 1,110.5 crore in the same quarter last year.

Nine-Month Consolidated Performance

Consolidated net sales for the nine months ending December 31, 2025, were Rs 26,287.9 crore, up 3.2% from Rs 25,467.8 crore for the same time the previous year. The margin increased to 18.7% from 17.9%, while PBDIT increased 7.4% to Rs 4,909.3 crore.

The nine-month profit before unusual items and tax increased by 6.7% to Rs 4,546.9 crore. Net profit after minority interest increased by 6.0% to Rs 3,153.2 crore, while net profit before minority interest and unusual items increased by 5.6% to Rs 3,351.0 crore.

Standalone Business Performance

Asian Paints recorded a 2.9% increase in net sales to Rs 7,601.5 crore in the third quarter compared to Rs 7,383.9 crore in the same period last year. PBDIT during the quarter rose 7.8% to Rs 1,626.7 crore, while the margin improved from 20.4% to 21.4%.

On its own, profit before unusual items and tax increased by 7.1% to Rs 1,581.4 crore. Before extraordinary items, net profit rose 6.6% to Rs 1,176.6 crore; however, because of unusual items, net profit fell 7.1% to Rs 1,025.3 crore from Rs 1,104.1 crore.

Standalone Nine-Month Performance

Standalone net sales rose 2.3% to Rs 22,786.2 crore during the course of the nine months. The margin improved to 19.8% while PBDIT increased 6.6% to Rs 4,505.9 crore. Profit before taxes and special items rose 5.3% to Rs 4,337.5 crore.

Net profit jumped 6.6% to Rs 3,080.5 crore, while standalone net profit before extraordinary items increased 4.6% to Rs 3,231.8 crore.

Segment-wise Performance

With businesses in Sri Lanka, the United Arab Emirates, and Ethiopia leading the way, the foreign company posted net sales growth of 6.3% in Q3 FY26 to Rs 869.6 crore. The segment’s profit before unusual items and tax increased from Rs 60.8 crore to Rs 76.6 crore in the previous year. International net sales surged by 8.2% to Rs 2,451.7 crore over the nine-month period, while profit reached Rs 191.0 crore.

Although losses decreased throughout the quarter, the bath fittings company in the home décor area reported a decrease in net sales. In Q3, the kitchen business recorded moderate sales growth along with lower losses. Weatherseal and White Teak both reported higher quarterly sales.

During the quarter and the nine-month period, APPPG and PPGAP both reported double-digit increases in net sales and improved profits in the industrial industry.

Asian Paints stated that any further effects resulting from the announcement of labor code regulations would be acknowledged in later periods. During the current session, Asian Paints Ltd. was trading on the BSE at Rs 2,584.70, down Rs 117.55, or 4.35 percent.

Frequently asked questions

1. What was Asian Paints’ Q3 FY26 performance?

Asian Paints reported conflicting outcomes. PBDIT jumped 8.8% to Rs 1,781.0 crore, while consolidated net sales gained 3.9% to Rs 8,849.7 crore. However, extraordinary factors caused the net profit after minority interest to drop 4.6% to Rs 1,059.9 crore.

2. What led to the decrease in net profit?

Exceptional charges of Rs 157.61 crore on consolidated financials, including Rs 63.74 crore for labor codes and Rs 93.87 crore for impairment on the White Teak transaction, were the primary cause of the fall. The extraordinary standalone items were Rs 166.53 crore.

3. What was the performance of the independent company?

At Rs 7,601.5 crore, standalone net sales increased by 2.9%. Due to unusual factors, net profit dropped 7.1% to Rs 1,025.3 crore, while PBDIT increased 7.8% to Rs 1,626.7 crore. Net profit for the first nine months climbed 6.6% to Rs 3,080.5 crore.

4. Which market segments experienced rapid expansion?

International business: Ethiopia, Sri Lanka, and the United Arab Emirates led the 6.3% increase in net sales in Q3.

Industrial business: Sales and earnings increased by double digits for both APPPG and PPGAP.

Home décor: Mixed results: White Teak and Weatherseal increased, bath fittings decreased, and the kitchen showed very slight growth.

5. What was the market’s response?

Following the statement, shares on the BSE dropped 4.35% to Rs 2,584.70, highlighting investor concerns over unusual fees and labor code costs.

Conclusion

Asian Paints had both development and difficulties in its third quarter of FY26. Although core sales and operating profits increased, unusual items pertaining to labor standards and the White Teak transaction had an impact on net profits.

Growth was fueled by the industrial and foreign sectors, but home decor remained uneven. Due to one-time costs, investors are apprehensive despite the company’s overall consistent top-line growth.

Disclaimer:

This content is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to risk. Please consult a qualified financial advisor before making any investment decisions.