News ArticleAsian Paints Reports 14.5% Decorative Revenue Growth and Expands Home Décor Profitability in Q2 FY27
Volume rises 6.4% in Q2 FY27 with rural and B2B demand; industrial coatings and international markets show strong momentum amid new premium launches
Asian Paints reported mid-teen revenue growth in Q2 FY27 driven by 6.4% volume growth and pricing. The decorative business revenue increased 14.5%, supported by rural and B2B demand. Home décor revenue rose 19% in Q2 FY27, reaching positive PBT, while industrial coatings showed strong growth despite margin pressures. The company's VAE plant Phase 1 commissioned, aiming at product differentiation and innovation.
Asian Paints Limited
Investor Presentation
Asian Paints posted a 14.5% increase in decorative business revenue for Q2 FY27, driven by volume growth and pricing actions, alongside a 19% revenue rise in its home décor segment with profit before tax turning positive. The company continues to expand its service offerings and launches new innovative products, supporting broad-based demand across markets.
The decorative segment volume grew 6.4% in Q2 FY27 with pricing support helping overall revenue growth. This growth was broad based geographically, with rural areas maintaining a lead over urban markets.
Home décor business revenue increased by 19% in Q2 FY27 and reported a profit before tax of ₹9 crore, reversing a loss of ₹4 crore in the prior year quarter. Key product categories include modular kitchens, bath fittings, fabrics, and decorative lighting.
Asian Paints’ industrial coatings segment delivered strong revenue growth, with PPG Asia-Pacific revenue up 33.7% to ₹795 crore, and Asian Paints Protective Coatings revenue rising 28% to ₹375 crore, despite a contraction in margins.
Phase 1 of the company’s vinyl acetate ethylene (VAE) plant was commissioned in Q2 FY27, supporting the development of proprietary formulations to drive product differentiation and margin benefits in the future.
Significant brand-building efforts including regional marketing campaigns and a partnership with the Bigg Boss show across five regional markets were highlighted as key initiatives to deepen consumer connect and expand reach.
Highlights
- Q2 FY27 decorative business revenue rose 14.5%, supported by 6.4% volume growth and pricing adjustments.
- Home décor business revenue grew 19% in Q2 FY27 with positive PBT of ₹9 crore compared to last year's loss.
- Industrial coatings revenue gains of 33.7% (PPG) and 28% (Protective Coatings) in Q2 FY27 despite some margin pressure.
- Commissioning of Phase 1 of VAE plant with 150,000 MT capacity positioning for innovation and margin expansion.
- Regional market campaigns and Bigg Boss partnership extended to five regional languages enhancing brand engagement.
- Broad geographical growth sustained, with rural demand leading over urban in Q2 FY27 decorative business.
Key Data Snapshot
What happened
- Asian Paints announced its Q2 and H1 FY27 operational and financial performance during an investor presentation held on 29th October 2026.
- The company detailed volume growth, revenue increases, product innovation, and strategic brand-building initiatives across markets.
- Phase 1 commissioning of the VAE plant was highlighted as a significant milestone for product differentiation and margin enhancement.
Key details
- Decorative business revenues rose 14.5% in Q2 FY27, with volume growth of 6.4% and pricing support.
- Home décor segment reported 19% revenue growth and a positive PBT of ₹9 crore in Q2 FY27, following previous losses.
- Industrial coatings segment grew strongly with PPG Asia Pacific revenue up by 33.7% and Asian Paints Protective Coatings up by 28%.
- New product launches include premium paint variants with advanced features and expanded regional marketing campaigns.
- Brand-building activities included a Bigg Boss partnership in five regional languages to deepen consumer connections.
Operational performance
- Distribution footprint expanded further to increase market reach and penetration.
- Broad-based demand across diverse geographies sustained growth with rural markets leading urban in decorative paint demand.
- Beautiful Homes Painting Services maintained strong performance supported by high customer satisfaction scores.
- Phase 1 of the VAE plant equipped Asian Paints to produce next-generation green technology emulsions indigenous to the company.
- Innovations contributed approximately 18% of overall revenues, underlining emphasis on product differentiation.
Business impact
- Volume and value growth in decorative paints confirm consumer demand despite pricing increases.
- Profitability gains in home décor business demonstrate successful scaling and diversification beyond paints.
- Industrial coatings growth enhances the company’s presence in automotive, protective, and powder coating segments.
- The VAE plant’s commissioning positions Asian Paints for enhanced product innovation and long-term margin benefits.
- Regional marketing and consumer engagement initiatives support sustainable brand growth and penetration.
Background and context
- Asian Paints is leveraging integrated home décor offerings alongside its core decorative coatings business to capture broader customer wallet share.
- The company is focusing on premiumization, innovation, and service differentiation to sustain competitive advantage.
- Global markets, including Sri Lanka and Middle East, saw premium product launches with warranties extending up to 10 years.
- The investor presentation was part of formal disclosure requirements under SEBI listing regulations.
Highlights
- Q2 FY27 decorative business revenue rose 14.5%, supported by 6.4% volume growth and pricing adjustments.
- Home décor business revenue grew 19% in Q2 FY27 with positive PBT of ₹9 crore compared to last year's loss.
- Industrial coatings revenue gains of 33.7% (PPG) and 28% (Protective Coatings) in Q2 FY27 despite some margin pressure.
- Commissioning of Phase 1 of VAE plant with 150,000 MT capacity positioning for innovation and margin expansion.
- Regional market campaigns and Bigg Boss partnership extended to five regional languages enhancing brand engagement.
- Broad geographical growth sustained, with rural demand leading over urban in Q2 FY27 decorative business.
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
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