Paint makers expect uptick in Q3 with improvement in margins
Industry expects consumption to pick up steadily in second half of the fiscal, says report
image for illustrative purpose
New Delhi: Leading paint makers expect an uptick in sales and volume in the ongoing quarter as they see green shoots, along with improvement in margins, helped by benign material prices. However, they also foresee higher competitive intensity in the market as they go ahead.
Moreover, some makers also reported cumulative price increases of 1.5-2 per cent after the country's paint sector saw aggressive discounting due to new entrants.
Listed players such as Asian Paints, Kansai Nerolac, Berger, and AkzoNobel India, in their latest earnings calls mentioned the impact on their topline from the extended monsoon in the second quarter, although there was an uptick in sales from September.
Expecting a steady uptick in consumption in the second half (H1) of FY26, led by factors such as a good monsoon, GST relief, among others, paint makers will continue to invest in innovations and in advertising and promotion.
They further said November and December will see improvement in margins, assisted by benign material prices.
"The industry, in Q2, just grew about 3.5-4 per cent. So, it's not been something which has been really great. Monsoon was the spoilsport, and the festive window was also small," said Asian Paints MD & CEO Amit Syngle in an investors' call.
However, Syngle also said he witnessed "green shoots" in the months of September and October 2025.
"We are also seeing that as we go ahead, there is a very strong marriage season which is going to provide support. We have had good monsoons which would augur well for possibly some growth in terms of the rural markets. And finally, I think GST corrections would create an uptick in the consumption," he said.
Syngle cautiously said, "We need to be a little bit conservative in terms of seeing how the overall environment kind of augurs out as we look at the next three months and the six months."
Overall, the "competitive intensity" will remain in the market and all players putting their best foot forward in terms of what they are doing.
Asian Paints, a leader in the segment, reported 6.38 per cent increase in sales to Rs 8,513.70 crore in the September quarter of FY26.
Kansai Nerolac Paints, also faced continued rain disruptions in the second quarter of FY26, had a "slight uptick" towards the back end of September. It expects consumption demand "to pick up steadily in the second half of the fiscal year", helped by supportive economic measures.
Replying to a query, its Managing Director Pravin Chaudhari said in October, there might be some challenges, but he said he is hopeful of an uplift in demand in November and December.
