Highlights

• Net sales for Q2 FY26 increased 5.8%, driven primarily by volume growth, while higher rebates and product mix moderated gains.
• PBDIT rose 21.0% to ₹[figure] crore for the quarter, with the PBDIT margin expanding 230 basis points to 18.5%.
• Interim dividend of 450% (₹4.50 per share) announced for FY26.

Asian Paints (NSE:ASIANPAINT) has announced its standalone financial results for the quarter and half-year ended September 30, 2025. The company reported growth in net sales, improved gross margins, and higher profitability, supported by volume gains, cost management, and continued investments in brand initiatives. Alongside operational performance, Asian Paints declared an interim dividend of ₹4.50 per share for FY26.

For the quarter ended September 30, 2025, Asian Paints reported net sales growth of 5.8% compared with Q2 FY25. While volume growth contributed positively, the impact of lower product mix and increased rebating partially offset gains. Gross margin expanded 270 basis points to 43.7%, supported by cost optimization and efficiencies across operations.

Profit before depreciation, interest, and taxes (PBDIT) rose 21.0% year-on-year, with the PBDIT margin improving to 18.5% from 16.2% in Q2 FY25. The company maintained a focus on brand investments to enhance saliency, which supported both top-line and profitability growth.

Half-Year Performance

In H1 FY26, net sales grew 2.0% year-on-year, reflecting steady demand across domestic and industrial segments. Gross margin for the first half of the year stood at 43.4%, up 150 basis points from H1 FY25. PBDIT for H1 FY26 increased by 5.9%, while the PBDIT margin expanded 70 basis points to 19.0%, highlighting sustained cost management and operational efficiencies over the period.

Dividend and Shareholder Returns

Asian Paints declared an interim dividend of ₹4.50 per share, equivalent to 450% of the face value, for FY26.

Outlook and Market Trends

For Q3 FY26, Asian Paints expects demand conditions to improve, supported by the festival and marriage season, GST 2.0 implementation, and benign inflation, which are anticipated to boost broader domestic consumption. The company continues to monitor competitive intensity in urban markets and aims to enhance its innovation quotient and brand saliency.

Industrial and international businesses are expected to maintain momentum, while raw material prices are projected to remain stable. However, geopolitical uncertainty and currency fluctuations may influence cost dynamics.