Asian Paints shares traded largely flat after the company reported a 14.6 per cent increase in standalone net profit to ₹1,095.6 crore in the second quarter. Standalone revenue rose 14.8 per cent to ₹8,423.6 crore.

Its margin contraction reflected sharp raw material inflation and supply constraints linked to geopolitical disruptions.

The board declared an interim dividend of ₹5.75 per share, equivalent to 575 per cent of the face value.

Macquarie maintained its ‘outperform’ rating with a target price of ₹3,300. The brokerage noted that Q2 revenue grew 16.9 per cent year-on-year, while EBITDA increased 3.6 per cent, missing estimates. Decorative volumes grew 6.4 per cent, while gross margin contracted around 400 basis points year-on-year. Macquarie retained the 18–20 per cent EBITDA margin guidance and expects pricing and backward integration to support recovery.

Jefferies maintained its ‘buy’ rating on Asian Paints but cut its target price to ₹3,025 from ₹3,350. The brokerage expects 8–9 per cent decorative volume growth in H2, aided by festive and wedding demand. It retained its FY27 EBITDA margin guidance of 18–20 per cent and expects additional price hikes to offset inflation. VAM/VAE backward integration is expected to deliver a 3–5 percentage-point benefit at full potential.

Goldman Sachs maintained its ‘sell’ rating and cut its target price to ₹2,375 from ₹2,725. The brokerage noted that Q2 revenue rose 16.9 per cent year-on-year, while EBITDA grew just 3.6 per cent, missing estimates by 11.6 per cent.

Decorative volume growth slowed to 6.4 per cent from 9 per cent in Q1, while gross margin contracted 350 basis points year-on-year. Goldman Sachs noted that management retained its FY27 EBITDA margin guidance of 18–20 per cent and expects H2 volume growth of 8–9 per cent. The brokerage cut its FY27–29 EPS estimates by around 2 per cent, citing high input costs and competition as factors that could delay recovery.

HSBC maintained its ‘hold’ rating but cut its target price to ₹2,420 from ₹2,650. The brokerage retained its FY27 EBITDA margin guidance of 18–20 per cent, while flagging rising input costs and competition as risks to recovery.

Premiumisation and festive demand offer support, but dealer promotions and consumer downtrading remain risks, HSBC said. The brokerage also cut its target valuation multiple to 40 times from 45 times and questioned the potential savings from backward integration.

The scrip closed flat at ₹2,320 on the NSE.

Published on October 30, 2026