Asian Paints Q4 Results: Revenue Beats Estimates, 5 Key Takeaways For Investors

Añadido: 2026-05-31

[00:00:00]egg number for today. Asian Paints has come out with its earnings revenue is at 9,247 crores. Um and you know we'll of course get you that first cut as Shah will join in very soon and you already seen the stock coming back into the green. So was patiently waiting by for those results.

[00:00:17]The estimate were of 8,781 crores. But in terms of at least versus the estimate, it seems to be a good set of numbers at least on the revenue.

[00:00:26]Terms of profits also at 1172 crores versus estimates of 1055 kores also looks at a decent picture for the company. Now it's an important quarter for the paint makers because we've seen Burgger also come out with decent set of earnings for Asian paints. Also of course we will track the AIDA margins but also the volume picture for the company in quarter 4 as well. So all those details and we'll get you the forecast right away as well. But in terms of at least these two numbers these the couple of and the stock also turning into green looks decent at this point of time but let me go across to Shahhat now joining us to give us the first cut. Shahhat what are you picking up?

[00:01:04]>> Well interestingly the numbers two important things are coming out from these numbers. The initial first cut is a PAT numbers that has beat the street estimates also and if you look at the number that's at 1172 odd cr rupees and compare that with the estimate of,55 cr rupees also the volume growth number that is also we could see that's also doing well. The volume growth came at 10% that's on the higher band of the expected guidance which was between 8 to 10%. And so definitely the street might like the volume growth going ahead. But of course the concern remains is the rising crude prices and the crude derivatives. Will that affect the outlook going ahead in the next quarter?

[00:01:40]That's something to watch out for. But as of now the volume growth has beat estimates. The overall PAT numbers if you look at it that has beat street estimates and the revenue largely that has also done well. It's around 9,247 cr rupees. Compare that with an estimation of almost 8,800 cr rupes. So initially the first cut the numbers beats estimates largely in line to good numbers and if you look at the volume numbers also that's also on the higher side of the band of the guidance which was expected in the street. So net net first cut seems good but of course we'll be looking at the internals also and the management commentary as well. Got the view shahada and thanks so much for joining in. The AITA numbers also you know looks very promising at 19.3%.

[00:02:26]You know the number is is quite positive at this point of time and of course you know gives you that perspective of the outperformance for Asian in this quarter as well. But overall you know you're continuing to see the stock continuing to be in the green and of course we'll get you more updates on this. Uh there was an exceptional item though in the same quarter last year. So in quarter 4 of FI25 you had 125 124 cr impact uh in the same quarter last year. So hence you'll see that bigger number in terms of profits which we are mentioning as well. But in this quarter you know we not see any exceptional item as well. So uh that's another key concern and as Shah highlighted the raw material prices the crude oil commentary continues to be very important for Asian paints in this quarter. You've seen input cost prices also hamper across a bunch of industries as well. But on Asian that will be the other aspect to watch out for on revenue growth. This has been a decent picture.

[00:03:20]Stock continues to be in the green at this point of time as well. When you also look at the employee expenses not increase too materially but 100 cr impact 720 crores versus 631. And in terms of what we've seen in the cost of material consumed not too big of a jump as well at 3,984 versus 3892 as well. So uh a couple of these numbers continues to be in focus at this point of time and of course you've seen you know the the income of course for the owners you know seeing a bigger jump uh versus on a Y basis. So you've seen the total the owners of the company have got 1172 versus 692 crores in the same time last year. So we told you about that 182 cr impact as well and just very important that we we address this numbers and and you know get you that perspective also. Um and u rather ammon just uh you know if I can because you know the numbers have just come in and I'm sure that you still have to look at them but on the face of it just these couple of two to three key parameters and numbers that we put out uh any read that you have on Asian planes right now >> the number looks very encouraging and positive so effectively look at both the top line and bottom line have grown significantly and the number seems very positive in fact the backdrop is also pretty strong and the other important aspect is if you look at from the market channels suggested us they have taken a good price high in the month of April and maybe May as well. So I think they will be able to impact the margin and positively look at in terms of they have taken a very good hike and maybe with that hikes they will be able to steer through the margins. If you look at the emitter margin what got reflected they are quite strong. So I think a very strong set of numbers obviously we need to dive deep dive into details and figure it out but the initial take is very very positive on the counter.

[00:05:04]>> Got it. And uh you know we are also being joined by Mayures Jooshi the head of research at marketspare India.

[00:05:10]Mahayuresh always a pleasure. Thanks so much for joining in. Uh you know the numbers look decent at this point of time and you know because you know one of the major numbers that we're tracking is the volume growth. So the decorative business for India has shown a volume growth of 12.4%. While a value growth has been of 10.2%. What do you make of these two parameters at this point of time?

[00:05:32]>> Afternoon pleasure to be here. Uh no, I think the decorative volume growth number is definitely better than what the street was probably um expecting or estimating as well and therefore on the decorative volume number I think it's uh it's a good beat in terms of estimates.

[00:05:47]Uh when it comes to the value growth uh in terms of absolute numbers uh I think it's a decent set as well. So I think both these parameters as far as Q4 are concerned is better than what the state was probably expecting. Also may what we've seen is and this has been across the pain sector of course that the value growth uh continues to be lower because of the lower priced items you know getting the primers amongst others getting much more higher sales. So the volume growth picture of course looks good but not translating into volumes but not translating into value at this point of time but I think a doubledigit value growth bodess well at least for now. Would that be a correct assessment?

[00:06:25]Would you agree with that?

[00:06:28]Yes, I think that assessment would be correct. As well as the uh question on the product mix part, I think the lower margin products are obviously getting pushed more into the market as we speak.

[00:06:37]And let's not forget the competition intensity still persists. Therefore, to a large extent even on the higher value P or even the distempers, we're probably seeing large part of competition intensity pressure in terms of pricing still getting played out. Uh uh but a double digit or a 10% value growth is decent. uh but again punit it'll be very very interesting to know and point out what the management feels in terms of all the challenges that we have in front of us uh on how Q1 in the first half is probably going to play out.

[00:07:06]>> Got it. And also Mahay because you know there's been almost a 200 basis point increase in the AIDA margins. Now we spoke about how the end of quarter 4 was impacted because of the Middle East crisis and hence you wouldn't see fully an impact but even at these 200 basis points growth in epida in such a quarter because there was some impact at least uh do you think what could have led to that according to you?

[00:07:35]>> No sir I think the uh belief here would be that uh competition intensity pressures should start petering out. I think uh the kind of intensity we saw a few quarters back uh that should uh probably not persist uh in a more intense fashion as we speak. The second element obviously is also the expectation in terms of uh organized market shares actually starting to gain uh from the unorganized players uh as as we head into a more challenging quartile as far as Q1 and Q2 is concerned and therefore I think leadership stocks like Asian Paints and others can probably hold the market longer and sustain in a more u robust fashion compared to the unorganized players both in terms of pricing and managing the legal to the distributors and third in terms of passing on the costs uh entirely I think the management will be a little circumspect right now uh because again the Nino effect is expected to play out which can also play out front in terms of how demand dynamics play out uh so how much of a cost push through will happen in terms of when product prices is something to be seen and how much do they ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab ab absorb in the end so I think u it looks fairly balanced on all these parameters earnestly >> got it Uh thanks so much may you know appreciate your time and your detailed analysis also in such a quick short notice appreciate your time here at ND profit but there you go uh that's you know the first cut of Asian pains looks like a good set of numbers stocks reacting also in green as mures highlighted there are multiple key aspects to watch from the management conversation also but a 12% volume growth 10% value growth will be something that the street will be happy at this point of time but let's get back.