New Delhi: Asian Paints is heading into the December quarter (Q3 FY26) with measured optimism, as management expects seasonal demand triggers, softer raw-material costs and a recovery in rural consumption to support growth after a steady second quarter.
During its Q2 interaction, the company said it anticipates mid-single-digit value growth for FY26, with volumes likely to stay 4–5 percentage points ahead, indicating a potential pickup in Q3 if demand conditions remain favourable. The December quarter typically benefits from post-monsoon repainting cycles, a heavy marriage season and festival spill-over demand.
There is a likelihood in an uptick in Q3 volumes, driven by benign crude-linked raw material pricing, improved stocking at dealers, and continued traction in premium emulsions and waterproofing products with these factors could help Asian Paints sustain the momentum seen in Q2’s 10.9% volume growth.
However, the company remains watchful of intense competition in decorative paints, with new entrants and discount-led market share plays keeping pricing under pressure.
Management had earlier flagged that while input prices are currently stable, any reversal in crude or currency volatility could compress margins.
Asian Paints expects its large-scale backward-integration projects—especially the VAM-VAE plant coming online early next year—to offer additional cost leverage, aiding margins through Q3 and beyond.
Overall, the company enterered Q3 with supportive demand cues, stable material costs, and strong brand visibility, though the industry’s hyper-competitive environment remains a key swing factor for revenue growth and profitabi lity.