Asian Paints, India’s largest paint manufacturer, reported a significant decline in its net profit for the second quarter of the financial year 2025 (Q2 FY25). The company’s profit fell by 42.4%, amounting to Rs 694.64 crore, compared to the same quarter last year. This drop is largely attributed to weak demand in the paint industry, exacerbated by adverse weather conditions.
Weak Demand Drives Profit Decline
During Q2 FY25, Asian Paints saw its net sales fall by 5.3%, totaling Rs 8,003.02 crore. The company cited several factors behind this slowdown, including persistent rains and floods in certain regions, which hampered both consumer spending and the overall economic environment. The lower demand in the domestic market also reflected in the company’s performance, with its decorative paints business in India seeing a slight decline of 0.5% in volumes.
Weather-Related Challenges Impact Paint Sales
The company attributed the weaker-than-expected performance to adverse weather conditions, including heavy rains throughout the quarter. The impact was especially pronounced in flood-affected areas, where demand for paints typically drops as consumers focus on immediate recovery needs rather than home renovations or improvements. These conditions disrupted not only retail sales but also construction activities, which are closely tied to paint demand.
Key Financial Highlights for Q2 FY25:
- Net Profit: Rs 694.64 crore (down 42.4% YoY)
- Net Sales: Rs 8,003.02 crore (down 5.3% YoY)
- Decorative Paints Business (India): Volume decline of 0.5%
Despite the challenges faced in Q2 FY25, Asian Paints remains optimistic about its long-term growth prospects, pointing to continued investments in both product innovation and expanding its market reach.
Looking Ahead: Focus on Innovation and Recovery
Asian Paints continues to focus on strengthening its brand presence and diversifying its product offerings. The company is also looking ahead to a recovery in demand as the weather conditions stabilize and the economy picks up in the coming quarters. The company’s commitment to sustainability and digital transformation is expected to play a key role in driving future growth.
