Asian Paints reported a sharp 45% year-on-year decline in net profit for the March 2025 quarter to Rs 700 crore, even after accounting for an exceptional gain of Rs 179.81 crore. If this exceptional item is excluded, the profit decline would have been even steeper, highlighting the underlying pressure on the company’s core operations.
Revenue for the quarter fell 4.3% to Rs 8,359 crore. Operating performance was under strain, with EBITDA dropping 15% to Rs 1,407 crore. Margins contracted sharply to 17.2% from 19.4% in the same quarter last year. Volume growth during the quarter was muted at just 1.8%, indicating weak demand or stagnation in key segments.
The exceptional gain in the standalone financials includes two major adjustments. The company booked an impairment loss of Rs 101.30 crore for its investment in Obgenix Software Private Limited (White Teak) and recognized a fair valuation loss of Rs 78.51 crore related to derivative contracts for future stake purchases in White Teak (40% stake). Despite these non-operational items adding up to Rs 179.81 crore, the net profit still showed a 45% decline, signaling deeper operational stress.
Despite the disappointing results, Asian Paints recommended a final dividend of Rs 20.55 per equity share for FY25. Including the interim dividend of Rs 4.25 paid earlier, the total dividend for FY25 stands at Rs 24.80 per share. The record date for the final dividend has been set for 10th June 2025, with payment to be made on or after 30th June 2025, pending shareholder approval at the 79th Annual General Meeting.
Asian Paints’ stock fell 1.4% on Wednesday and is now trading at Rs 2,300. The stock remains 33% below its all-time high. Rising competition from new players like Birla Opus and JSW Paints is one of the major concerns. Many retailers now prefer Birla Opus due to its lower pricing and high reliability. As a result, Asian Paints' market share has come under pressure. However, the company's management did not comment on this growing competitive threat during the Q4
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