Asian Paints Q3 profit shines, despite one-off labour and tech hits

MUMBAI: Asian Paints proved once again that it knows how to keep its balance, even when the canvas gets messy.

India’s largest paint maker reported a solid set of standalone results for the quarter ended 31 December 2025, posting a net profit of Rs 1,025 crore, despite absorbing hefty one-time charges linked to new labour laws and a tech investment write-down.

Revenue from operations came in at Rs 7,624 crore for the quarter, up modestly from the previous quarter and broadly steady year-on-year. For the nine months ended December, revenue touched Rs 22,849 crore, underlining resilient demand even as consumption trends remain uneven.

The real test, however, lay below the top line. Asian Paints booked exceptional expenses of Rs 166.5 crore during the quarter. This included a Rs 60.6 crore hit from higher employee benefit liabilities following the notification of India’s new Labour Codes, which redefine wages for gratuity and leave calculations. The remaining Rs 106 crore was an impairment loss on its investment in Obgenix Software, better known as White Teak.

Strip out these one-offs and the underlying business still showed healthy momentum. Profit before tax stood at Rs 1,415 crore for the quarter, while nine-month profit after tax rose to Rs 3,081 crore, up from Rs 2,891 crore a year ago.

Costs were largely under control. Raw material consumption eased on a nine-month basis, helping offset higher employee expenses and other operating costs. Finance costs also declined compared to last year, offering some relief to margins.

Adding a splash of cheer for shareholders, Asian Paints had already declared an interim dividend of Rs 4.50 per share in November, which was paid before the end of the quarter.

Earnings per share for the quarter came in at Rs 10.70, compared with Rs 11.52 a year earlier, reflecting the impact of exceptional items rather than any dulling of the core business.

In short, while labour reforms and a misfiring tech bet dulled the finish this quarter, Asian Paints’ fundamentals remain firmly intact. The brand still has pricing power, scale and a loyal customer base, proving that even when the weather turns patchy, the company knows how to keep its colours bright.