Asian Paints Ltd on Thursday reported a 7.5 percent year-on-year increase in consolidated net profit after minority interest to Rs 1,067.6 crore for the quarter ended September 2026 (Q2 FY27), even as profitability came under pressure from rising raw material costs and supply constraints.

Asian Paints' revenue from operations rose 16.9 percent year-on-year to Rs 9,976.5 crore, supported by growth across its domestic decorative and industrial coatings businesses as well as international operations.

However, operating margins contracted during the quarter as the company absorbed part of the increase in input costs to protect consumer demand. Its profit before depreciation, interest and tax (PBDIT) margin declined 202 basis points year-on-year to 15.6 percent, while the net profit margin narrowed 94 basis points to 10.7 percent.

Asian Paints also announced an interim dividend of Rs 5.75 per share, equivalent to 575 percent of the face value.

The company's domestic decorative paints business recorded volume growth of 6.4 percent and value growth of 14.5 percent during the July-September quarter. The overall domestic coatings business registered value growth of 16.4 percent and volume growth of 6.8 percent, supported by strong performance in industrial coatings, where value growth stood at 31.8 percent.

International operations also delivered strong sales growth. Net sales from the international business increased 29.5 percent year-on-year to Rs 1,095.6 crore from Rs 846 crore. In constant currency terms, revenue grew 23.7 percent. However, profit before tax from international operations declined 31 percent to Rs 52.7 crore despite the increase in revenue.

The company said its international business recorded growth across all regions, including the Middle East, where operations faced servicing challenges arising from geopolitical developments.