Asian Paints Q4 Results: Profit drops 45% to Rs 692 crore, revenue and margins also decline

Asian Paints reported a 45 per cent year-on-year fall in consolidated net profit to Rs 692.13 crore in Q4 FY25, far below Street estimates and Zee Business Research expectations of Rs 1,082 crore. The paints major had posted a profit of Rs 1,256.72 crore in the year-ago quarter. On a sequential basis, profit was down 37.7 per cent from Rs 1,110.48 crore in Q3 FY25.

The company’s consolidated revenue from operations came in at Rs 8,358.91 crore for the March 2025 quarter, down 4.3 per cent from Rs 8,730.76 crore in Q4 FY24. Revenue was also down 2.2 per cent sequentially. Zee Business had estimated topline at Rs 8,626 crore.

Margins take a hit amid weak operating performance

Operating performance was also under pressure. Profit before depreciation, interest, tax, other income, and exceptional items (PBDIT) dropped 15 per cent YoY to Rs 1,436 crore, while the PBDIT margin contracted by 220 basis points YoY to 17.2 per cent from 19.4 per cent. Analysts had pegged margin at 17.9 per cent, citing higher advertising expenses and sluggish demand conditions.

Volume growth in domestic decorative segment remains modest

According to Zee Business Research, the company’s domestic decorative paints segment saw around 4 per cent volume growth in the quarter, reflecting marginal improvement in rural demand, though urban markets remained under pressure.

Asian Paints share price under pressure ahead of earnings

Ahead of the results announcement, shares of Asian Paints traded flat with a negative bias, closing at Rs 2,329.85 on the BSE. The stock has underperformed the benchmark, delivering a negative return of over 20 per cent in the last one year.

Outlook: All eyes on demand recovery and raw material trends

Going forward, analysts will closely watch commentary from the management on raw material price trends and rural vs urban demand. The current weak trend may continue if demand does not pick up meaningfully in the coming quarters.