The Asian Paints Q2 results for FY27, announced on 29 October 2026, show a clear message for everyone who buys paint raw materials in India: costs are still climbing, and even the market leader cannot pass all of it on to customers. In this article we explain the key numbers in simple words and share practical steps that small and mid-sized paint, coating and ink manufacturers can take right now.
Asian Paints Q2 Results: The Key Numbers
According to Business Standard and HDFC Sky, the July–September 2026 quarter looked like this:
- Net profit: about ₹1,068 crore, up 7.45% year-on-year.
- Net sales: about ₹9,977 crore, up nearly 17%.
- India decorative paints: volume growth 6.4%, value growth 14.5%.
- Industrial coatings: value growth 31.8%.
- Consolidated PBDIT margin: 15.6%, down from 17.7% a year earlier.
The gap between value growth (14.5%) and volume growth (6.4%) is the important part. It means much of the sales growth came from higher prices, not from selling a lot more paint. At the same time, margins went down. Put simply, raw material costs rose faster than prices.
Why Margins Fell: Raw Material Inflation
The company said the quarter was hit by sharp raw material inflation and material availability problems linked to geopolitical disruptions. MD & CEO Amit Syngle said inflationary pressures are “showing little sign of easing” (as reported by HDFC Sky).
From the earnings call, as summarised by GuruFocus:
- Price increases of about 7% in Q1 and about 5% in Q2, with a further hike of about 3.5% in November.
- Gross margin guidance moved to 41–43%, compared with the historical range of 44–45%.
- Management expects calibrated (step-by-step) price increases to continue.
If the biggest paint company in India, with its buying power and scale, is guiding for lower gross margins, smaller manufacturers should expect even more pressure on their own costs.
The TiO₂ Anti-Dumping Duty Adds Another 2–3%
The new anti-dumping duty on titanium dioxide from China came into force on 24 October 2026. On the call, management estimated that it adds about 2–3% to costs, and said the November price hike also covers this impact. We explained the duty itself in detail in our earlier post: TiO₂ Anti-Dumping Duty is Back (Oct 2026).
Asian Paints shared two ways it plans to manage the TiO₂ cost:
- Using less TiO₂ through alternative chemistries (formulation changes).
- Choosing grades that carry different duty rates, since the duty is not the same for every source.
Both ideas are just as useful for a small paint unit as they are for a large one.
What the Asian Paints Q2 Results Mean for Smaller Manufacturers
Large companies can absorb part of the cost, invest in backward integration (Asian Paints commissioned Phase-I of its VAE plant at Dahej this quarter) and raise prices in small steps. Smaller manufacturers usually do not have these options. Here is what the numbers mean on the ground:
- Your selling price may lag your cost. If the leader is still taking increases, your dealers will accept some increase too, but not overnight.
- Demand is not weak, but it is price-sensitive. Asian Paints still grew volumes by 6.4% in decoratives and guided for about 8–9% volume growth ahead, helped by a long festive and wedding season. Management also flagged rural demand risk from the weak monsoon.
- Industrial and coatings buyers are also feeling it. The company said it is taking another round of price increases in coatings.
7 Practical Steps for Raw Material Buyers
1. Re-check your TiO₂ source and grade
Compare Chinese grades (now carrying duty) with Indian and other origins. Sometimes a slightly higher base price from a non-duty source ends up cheaper on a landed basis.
2. Use extenders smartly
Good-quality calcium carbonate, precipitated barium sulphate and quartz powder can partly replace TiO₂ in many formulations without hurting hiding power too much. Run small lab trials before changing a full batch.
3. Lock prices for your next 4–6 weeks
With “little sign of easing” in inflation, it can make sense to fix rates on fast-moving items now instead of buying day to day.
4. Pass on cost in small steps
Follow the market leader’s approach: small, regular increases are easier for dealers to accept than one big jump.
5. Review solvent and resin choices
Crude-linked inputs are a large part of cost. Check whether a different solvent blend or resin grade gives the same result at a lower price.
6. Cut wastage
Tight batch control, correct dispersion and proper storage reduce rejected batches – that saving goes straight to your margin.
7. Talk to your supplier early
Share your monthly requirement in advance so your supplier can plan stock and offer better rates.
How Neelgiri Chemicals Can Help
Neelgiri Chemicals supplies paint, ink, coating and plastic manufacturers across India with a wide range of raw materials, so you can compare options in one place:
- Rutile titanium dioxide from several origins, including KMML PG 800 and Kronos 2310.
- Calcium carbonate grades such as Calcite Super Fine 1501.
- Precipitated barium sulphate and quartz powder extenders.
- Industrial solvents, industrial resins and pigments.
For more on recent price moves, also read our post on the paint price hike in November 2026.
Frequently Asked Questions
What did the Asian Paints Q2 results show?
For Q2 FY27, Asian Paints reported net profit of about ₹1,068 crore (up 7.45%) and net sales of about ₹9,977 crore (up nearly 17%), but its consolidated PBDIT margin fell to 15.6% from 17.7% because of raw material inflation.
Why are paint raw material costs rising in 2026?
Asian Paints pointed to sharp raw material inflation and supply constraints linked to geopolitical disruptions. The anti-dumping duty on Chinese TiO₂ from 24 October 2026 adds a further 2–3% to costs, as per management.
How can small paint manufacturers reduce TiO₂ cost?
Compare non-duty TiO₂ sources, optimise TiO₂ loading with extenders like calcium carbonate, barium sulphate and quartz, and lock prices for the next few weeks. Always test formulation changes in the lab first.
Will paint prices rise further?
Asian Paints has taken a further increase of about 3.5% in November and said calibrated price increases will continue, so more increases across the market are possible.
Get a Quote Today
Need TiO₂, extenders, solvents or resins at the right price? Contact Neelgiri Chemicals for current rates and availability:
- WhatsApp: Chat with us on WhatsApp
- Phone: +91 87961 61378
- Enquiry form: neelgirichemicals.com/contact
Sources: Business Standard (29 Oct 2026), HDFC Sky (29 Oct 2026), GuruFocus earnings call highlights (29 Oct 2026). Figures are as reported by these sources. This article is for general information only and is not financial or investment advice; please confirm current prices and duties before making buying decisions.
