India Paints Q1 preview – robust demand but overhangs remain

Research evidence excerpt

India Paints Q1 preview – robust demand but overhangs remain

1 July 2026

India Paints EquitiesChemicals

Q1 preview – robust demand but overhangs remain India

◆ Demand was likely resilient in Q1FY27, despite price hikes; Pratik Gothi*

unit margins were protected, but key to track dealer behavior Analyst, India Consumer & Retail HSBC Securities and Capital Markets (India) Private

Limited

◆ Seasonally weak Q2 could see some roll-back of price hikes, pratik.gothi@hsbc.co.in

+91 80 6737 3929

although companies could also choose to buffer margins

Nihal Mahesh Jham*, CFA

Senior Analyst, India Consumer & Retail

◆ Competitive intensity still high and could limit over-earning HSBC Securities and Capital Markets (India) Private

opportunities; retain Hold on both APNT and BRGR nihal.m.jham@hsbc.co.in

+91 22 66283771

Nupur Vyas*

Demand was resilient in Q1FY27 despite price hikes: Paints companies hiked Associate, India Consumer & Retail

prices in phases by 10-15% over Q1FY27 and dealer incentives were also trimmed, HSBC Securities and Capital Markets (India) Private

but end consumer demand was robust. Dealer inventories likely stayed elevated in nupur.vyas@hsbc.co.in

Q1 as prices were hiked in phases, although it’s possible that some wind-down +91 22 40891584

happened towards the end of the quarter, with costs easing towards the end of Q1.

Seasonally weak Q2 could also see the brunt of this destocking. * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/ qualified pursuant to FINRA regulations

Asian Paints (APNT): In Q1, we expect volumes grew 8-9% yoy, in line with the high

single-digit level expected by management (Q4: 12.4%), with consolidated revenues

seen growing by 15% yoy (Q4: c11%). The company’s aggressive price hike of over