Asian Paints shares fall most in 14 months; JM Financial says ‘demand challenges persist’
According to the company's investor presentation, the Industrial Business clocked a growth uptick, with the AP-PPG joint venture revenue rising 16.5% and the PPG-AP automotive segment growing 16.9%.
- Jan 28, 2026,
- Updated Jan 28, 2026 10:49 AM IST
Asian Paints declined as much as 7% in Wednesday's trade, marking its sharpest single-day decline in over a year since November 11, 2024, following the announcement of its third-quarter earnings.
By 10:20 am, Asian Paints stock was trading 5.60% lower at Rs 2,478 on the BSE. Earlier in the session, the counter slipped as much as 6.6% to hit the day’s low of Rs 2,451, marking its biggest drop in 14 months, when the stock had closed over 8% lower.
While the company’s topline, consolidated revenue from operations, rose to Rs 8,867.02 crore from Rs 8,549.44 crore in the year-ago period, profitability took a hit. The paint major reported a consolidated net profit of Rs 1,073.92 crore, a decline of 4.8% compared to Rs 1,128.43 crore in the corresponding quarter last year.
Brokerage firm JM Financial maintained a ‘Reduce’ rating on the stock and revised the target price downward to Rs 2,735 from the earlier Rs 2,800. It highlighted that "demand challenges persist", noting that the performance was marginally below expectation.
JM Financial pointed out that despite a weak base, the domestic decorative business volume growth of 7.9% and value growth of 2.8% missed street estimates. The brokerage attributed this sluggishness to a ‘shorter festive’ season, which impacted October sales, coupled with extended monsoons. T
“While on profitability front, things are relatively comfortable (margin guidance unchanged at c.18-20%) due to benign COGS basket, acceleration in demand recovery still remains elusive/below expectations,” JM Financial said.
According to the company's investor presentation, the Industrial Business clocked a growth uptick, with the AP-PPG joint venture revenue rising 16.5% and the PPG-AP automotive segment growing 16.9%.
The International Business also maintained momentum, delivering sales growth of 6.3% led by strong performances in Sri Lanka, UAE, and Ethiopia.
Asian Paints declined as much as 7% in Wednesday's trade, marking its sharpest single-day decline in over a year since November 11, 2024, following the announcement of its third-quarter earnings.
By 10:20 am, Asian Paints stock was trading 5.60% lower at Rs 2,478 on the BSE. Earlier in the session, the counter slipped as much as 6.6% to hit the day’s low of Rs 2,451, marking its biggest drop in 14 months, when the stock had closed over 8% lower.
While the company’s topline, consolidated revenue from operations, rose to Rs 8,867.02 crore from Rs 8,549.44 crore in the year-ago period, profitability took a hit. The paint major reported a consolidated net profit of Rs 1,073.92 crore, a decline of 4.8% compared to Rs 1,128.43 crore in the corresponding quarter last year.
Brokerage firm JM Financial maintained a ‘Reduce’ rating on the stock and revised the target price downward to Rs 2,735 from the earlier Rs 2,800. It highlighted that "demand challenges persist", noting that the performance was marginally below expectation.
JM Financial pointed out that despite a weak base, the domestic decorative business volume growth of 7.9% and value growth of 2.8% missed street estimates. The brokerage attributed this sluggishness to a ‘shorter festive’ season, which impacted October sales, coupled with extended monsoons. T
“While on profitability front, things are relatively comfortable (margin guidance unchanged at c.18-20%) due to benign COGS basket, acceleration in demand recovery still remains elusive/below expectations,” JM Financial said.
According to the company's investor presentation, the Industrial Business clocked a growth uptick, with the AP-PPG joint venture revenue rising 16.5% and the PPG-AP automotive segment growing 16.9%.
The International Business also maintained momentum, delivering sales growth of 6.3% led by strong performances in Sri Lanka, UAE, and Ethiopia.