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Asian Paints is likely to increase prices by ~3% across its product range

ICICIdirect Research 28 Sep 2026 DISCLAIMER

News: As per media reports, Asian Paints is likely to increase prices by ~3% across its product range from November 1, 2026.

View: Brent crude continues to remain elevated at above US$100/bbl, while the benefit of low-cost raw material inventory has largely been exhausted in Q1FY27. Higher-cost inventory is expected to flow through in Q2FY27, keeping EBITDA margins under pressure, further impacted by seasonally weaker Q2 sales and an unfavourable mix due to lower exterior paint sales. The company has undertaken cumulative price hikes of ~14% since the start of the US-Iran war, including a ~7% weighted average increase in Q1FY27. The additional ~3% hike was already expected and should provide some further support to margins, although we do not expect the pricing actions to fully offset the impact of higher input costs in the near term. Despite this, management has retained its 18-20% EBITDA margin guidance, supported by calibrated pricing, better mix, cost optimisation and backward integration. The VAE facility becoming operational from Q2FY27 should provide an additional structural benefit. If crude prices correct or remain stable, there might be some relief from the margin pressure

Impact: Neutral

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