Asian Paints shares in focus after 6% fall in Q1 PAT. Should you buy, sell or hold?
ADVERTISEMENT Revenue from operations during the quarter under review came in at Rs 8,924 crore, marginally down by 0.20% from Rs 8,943 crore in Q1FY25.
On a sequential basis, however, the company witnessed a strong rebound in profitability. PAT rose 59% quarter-on-quarter (QoQ) from Rs 692 crore reported in Q4FY25. Revenue also improved 7% QoQ, up from Rs 8,330 crore in the January–March quarter.
Brokerage firm Antique has maintained a "Hold" rating on Asian Paints, raising its target price to Rs 2,469 from Rs 2,293.The firm noted that volume recovery is now visible. However, it cautioned that short- to medium-term profitability could remain under pressure due to higher rebates, increased marketing spends, and rising operational costs.
ADVERTISEMENT Despite these headwinds, Antique has revised its earnings estimates for FY26 and FY27 upwards by 2% and 1%, respectively, driven by improved profitability and volume recovery.
ADVERTISEMENT Avendus has maintained its "Reduce" rating on Asian Paints while revising the target price downward to Rs 2,300 from Rs 2,400.he brokerage expects the company's growth trajectory to improve sequentially in FY26. However, it also highlighted that near-term revenue growth is likely to face headwinds from unseasonal rains, heightened competitive intensity, and pricing actions.
ADVERTISEMENT As a result, Avendus has cut its revenue estimates for FY26 and FY27 by approximately 2%. Additionally, margins are expected to remain at the lower end of the management's guidance range.Motilal Oswal has maintained a "Neutral" rating on Asian Paints, with a target price of Rs 2,500.
ADVERTISEMENT The brokerage noted that while challenges continue, a significant revival still appears to be some time away. Asian Paints is witnessing early signs of demand recovery in urban areas, though rural demand remains stable.Demand in June and July 2025 was muted, but the management remains hopeful of a recovery by September 2025. The company is aiming for single-digit growth in both value and volume in the near term. EBITDA margin guidance has been maintained in the range of 18–20%, and a capex of Rs 700 crore has been planned for FY26. Estimates for FY26 and FY27 remain largely unchanged.
Also read: 10 BSE largecap stocks analysts expect to surge up to 28%
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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