Asian Paints Quarter 1 Results: Asian Paints released the first quarter results of FY 2025-26 on Tuesday 29 July 2025. There has been a decrease in the company’s revenue to profits. However, after this, the company’s stock climbed 2 percent, making a strong jump.

Profit decreased

The net profit of Asian Paints, a company associated with paint business, declined by 5.87 percent to Rs 1,117.05 crore during the June quarter. Its benefits have decreased due to decrease in demand for decorative paint. However, there was a rise of about 24 percent in the company’s other income.

Asian Paints, the country’s largest paint manufacturer, reported this financial result of the April-June quarter to the stock markets on Tuesday. The company earned a net profit of Rs 1,186.79 crore in the first (April-June) quarter of FY 2024-25.

Reduction in revenue

In the June quarter, the company’s sales revenue decreased marginally to Rs 8,924.49 crore. A year ago it was Rs 8,943.24 crore in the same period. The total expenditure of the company during the June quarter of the current financial year stood at Rs 7,658.95 crore, which is 1.32 percent more on an annual basis.

However, its total income in the June quarter remained stable at Rs 9,131.34 crore. On a single basis, the company’s sales revenue declined by 1.19 percent to Rs 7,848.83 crore. Asian Paints said that in the quarter under review, the sales quantity of its decorative paint business (India) recorded an increase of 3.9 percent but the revenue fell by 1.2 percent.

Amit Singley, Managing Director and Chief Executive Officer of Asian Paints, said that despite the slowing of the monsoon in June, the paint industry saw a slight rise in urban demand.

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Mukesh Ambani, the country’s richest industrialist, has taken exit from an investment, which will be counted in India’s corporate world’s most strong long -term bets. In 2008, he has earned Rs 9,080 crore from the shares of Asian Paints purchased in 2008, that is, a return of about 2,200 percent.

How did this miraculous deal happen?

Reliance Industries (RIL) recently sold its remaining stake in Asian Paints, ie 87 lakh shares, on an average, Rs 2,207.65 per share to ICICI Prudential Life Mutual Fund. With this, the company got Rs 1,876 crore.

Earlier, RIL sold 3.5 crore shares last week, SBI Mutual Fund for Rs 7,704 crore at a price of Rs 2,201 per share. That is, overall Reliance has sold the entire stake by earning Rs 9,580 crore from Asian Paints.

Timing was amazing

The time of exit turns out to be perfect, as Asian Paints is currently going through its most difficult phase. In the last two years, its shares have lost more than 30 percent. And the market share has fallen from 59 percent to 52 percent. The reason behind this is the new entry of Aditya Birla Group, Birla Opus Paints.

At the same time, revenue growth has also been cold since four quarters and margins are also under pressure, despite cheap raw materials, the profit margin has decreased due to more discounts and increasing competition.

RIL’s strategic thinking gets the trust of investors

Mukesh Ambani has made it clear from the Asian Paints that now his eyes are on New Energy and AI Infrastructure. Morgan Stanley’s analysts believe that RIL is now in his fourth montage phase. In the next three years, the company will spend an average of $ 15 billion every year, but its cash flow will fully support it. The company’s rating is expected to be better by 2027, as now its return on Capital Employees can go above 9 per cent.

This ‘opposite thinking’ won in 2008

When the whole world was struggling with economic recession in 2008 and veteran companies like Lehman Brothers were collapsing, Ambani showed the opposite thinking and bought a 4.9 per cent stake of Asian Paints for Rs 500 crore. And now after 17 years, the same bet gave the benefit of more than Rs 9,000 crore.

5 years ago, when Reliance was lending debt from his balance sheet and bringing the rights issue, he did not sell the Asian Paints. Instead raised $ 25 billion in digital, retail and telecom and that too with global investors.

Asian Paints still strong in market

Even though the company is surrounded by difficulties at this time, it still runs India’s largest paint distribution network with more than 74,000 dealers and is present in more than 60 countries.

However, brokerage firms are now a little cautious. Nuwama has cut the earnings of up to 6-8 per cent for FY26 and FY27 and EPS growth estimates only 7.2 per cent. The target price has been reduced to Rs 2,200 and the rating has also been kept ‘neutral’.

Disclaimer: (Information provided here is being given only for information. It is necessary to tell here that the investment market is subject to risks. Always consult expert before investing as an investor. Never is advised to invest money from Abplive.com.

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