Earnings
Home›Earnings›Results›Asian Paints reports 17.9% revenue growth in Q1FY27
Asian Paints reports 17.9% revenue growth in Q1FY27
The company also lifted EBITDA margin to 20.6% and flagged an ongoing 18% to 20% EBITDA margin target.
Asian Paints said its Q1FY27 performance strengthened, with revenue rising 17.9% year on year to ₹10,542 crore, its highest growth rate in 16 quarters, according to LiveMint Markets citing Reuters.
The quarter was supported by pricing actions and a favorable product mix, as the company launched products over the past three years that contributed 17% of Q1 revenue. It also described value growth as expected to outpace volumes while pricing adjustments work through the system, with the value volume gap turning positive for the first time in 14 quarters.
On margins, Asian Paints reported gross margin expansion of 91 basis points to 43.6%, and EBITDA margin rose to a multi quarter high of 20.6%. It reiterated its 18% to 20% EBITDA margin guidance and said it expects around 300 basis points of further gross margin improvement from backward integration.
Still, the company faced margin headwinds as consolidated raw material costs rose 16%. LiveMint Markets also noted that price increases taken in Q1FY27 and going into Q2FY27 appeared lower than street expectations, raising concerns about potential margin compression in Q2, with the management pointing to supply chain disruptions and raw material movement.