Asian Paints Q2 Sales Rise 17%; Dahej Plant Starts

Asian Paints Limited reported strong sales growth in Q2 FY27, supported by domestic decorative paints, industrial coatings and international markets. However, rising raw material costs weighed on operating margins. Q2 FY27 Financial Performance Consolidated Net Sales: ₹9,954 crore, up 16.9% YoY. Net Profit: ₹1,068 crore, up 7.5% YoY. Operating PBDIT: ₹1,557 crore, up 3.6% YoY. PBDIT Margin: 15.6%, compared with 17.7% a year ago. Business Growth Highlights India Decorative Paints: Volume growth of 6.4% and value growth of 14.5%. Domestic Coatings: Value growth of 16.4%, supported by industrial coatings. International Business: Sales increased 29.5% to ₹1,096 crore. Industrial Coatings: Value growth of 31.8%. Dahej Plant Starts Commercial Production Asian Paints commissioned Phase I of its Vinyl Acetate Ethylene (VAE) manufacturing facility at Dahej, Gujarat, on September 17, 2026. The facility has an installed capacity of 150,000 tonnes per annum. The investment is expected to strengthen backward integration, improve cost competitiveness and support product innovation. Why Are Margins Under Pressure? Raw material inflation and supply constraints affected profitability during the quarter. The company has implemented price increases but continues to absorb part of the cost pressure to protect consumer demand. Disclaimer: This content is for educational and informational purposes only and should not be considered investment advice or a recommendation to buy or sell any security. Investors should conduct their own research and consider their risk profile before making any investment decision.