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Asian Paints Q3 Profit Dips 5% Despite Revenue Growth, Shares Slump

Asian Paints reported a 4.8% year-on-year decline in consolidated net profit for Q3 FY26, amounting to Rs 1,074 crore. This drop occurred despite a nearly 4% increase in revenue from operations, which stood at Rs 8,867 crore. The profit was impacted by exceptional items worth Rs 157.6 crore related to labour code provisions and an impairment loss from an acquisition. Following the results, the company's shares fell approximately 4% during intra-day trading.

Key Points: Asian Paints Q3 Profit Falls 5%, Shares Slide 4%

  • Q3 net profit fell 4.8%
  • Revenue rose nearly 4%
  • Exceptional costs of Rs 157.6 crore impacted profit
  • Shares fell around 4% post-results
2 min read

Asian Paints' Q3 profit falls nearly 5 pc, shares slide 4 pc

Asian Paints Q3 net profit fell 4.8% to Rs 1,074 crore due to exceptional costs, despite a 4% rise in revenue. Shares dropped 4%.

"This performance... reflects the sustained momentum delivered through persistent actions - Amit Syngle"

Mumbai, Jan 27

Asian Paints on Tuesday reported a 4.8 per cent drop in its consolidated net profit for the quarter ended December 31, 2025.

The company's net profit fell to about Rs 1,074 crore, compared to around Rs 1,128 crore in the same quarter last financial year (Q3 FY25), according to its stock exchange filing.

Revenue from operations for the quarter rose nearly 4 per cent year-on-year to Rs 8,867.02 crore, up from Rs 8,549.44 crore in the corresponding period of the previous financial year.

This indicates that while sales improved, profitability was impacted due to certain exceptional costs.

The company said its net profit numbers include exceptional items worth Rs 157.61 crore.

These were mainly related to labour code provisions and an impairment loss following the acquisition of Obgenix Software Private Limited, also known as White Teak.

On the operational front, Asian Paints delivered a strong performance. Profit before depreciation, interest, tax, other income and exceptional items (PBDIT) rose by 8.8 per cent to Rs 1,781 crore from Rs 1,636.7 crore a year ago.

The PBDIT margin also improved to 20.1 per cent, compared to 19.2 per cent in the same quarter last financial year.

Profit before exceptional items and tax increased by 8.5 per cent to Rs 1,646.7 crore, while net profit before minority interest and exceptional items went up by 7.7 per cent to Rs 1,215.7 crore.

However, after accounting for exceptional items and minority interest, the final net profit declined.

"This performance for the quarter reflects the sustained momentum delivered through persistent actions across our identified growth initiatives even as the broader market faced persistent competitive intensity and subdued demand conditions," said Amit Syngle, Managing Director & CEO of Asian Paints.

"We have intensified our brand‑building efforts, launched a robust wave of retailing initiatives and introduced a wide range of innovative product and service propositions," Syngle added.

Following the announcement of the quarterly results, Asian Paints shares reacted negatively, falling around 4 per cent in the market during intra-day session.

- IANS

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Reader Comments

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Priya S
As a shareholder, I'm a bit disappointed. Even with the "exceptional items" explanation, a 4% drop in share price hurts. The management needs to be more careful with acquisitions like White Teak if they lead to such impairment losses. Hope the brand-building efforts pay off soon.
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Rohit P
Revenue is up, margins are better... that's the real story. The profit fall is just on paper because of accounting rules. Asian Paints is a market leader for a reason. In the long run, these small quarterly fluctuations don't matter. #HoldingStrong 💪
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Sarah B
Interesting to see the impact of the new labour codes on a giant like Asian Paints. It shows these regulatory changes are hitting corporate bottom lines across the board. The 20%+ operational margin is still very impressive though.
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Vikram M
Subdued demand conditions mentioned by the CEO is the key takeaway. If the housing and real estate sector picks up, Asian Paints will fly. Right now, everyone is being cautious with big expenses like home painting. It's a cyclical thing.
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Kavya N
Their paints are the best, no doubt. Just used them for my flat renovation last month. A bit pricey but worth it. Hope the company stays strong so we keep getting good quality products! 🇮🇳

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