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Asian Paints Q4FY25 – weak performance; cautious outlook for FY26

ICICIdirect Research 09 May 2025 DISCLAIMER

Asian Paints (consolidated) revenues declined 4.3% yoy to Rs 8,359crore, below than ours and street expectation. Decorative paint business registered a volume growth of 1.8% (vs. expectation of 4-5%) due to downtrading to low price products.

Lower operating leverage and higher marketing expenses led to 219 bps yoy in EBDITA margin to 17.2% (down sequentially by 197bps QoQ), also lower than street expectation of 18.0%.

The management has guided for high single digit revenue growth with gradual recovery in the volume growth. We expect large part volume recovery should happen in the second half of the year prior to festive season with improvement in the urban demand, recovery in the repainting and industrial activities and steady demand in the rural markets. EBIDTA margins will continue to remain at lower band of 18-20% as large focus will be on recovery in the volume growth.

We expect earnings growth momentum to remain muted We suggest avoiding buying this stock

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