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Asian Paints Ltd. Key Financial Ratios

NSE:ASIANPAINT | PAINTS

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Profitability Margins

2-year trend showing gross, operating, and net profit margins

FY 2025 - FY 2026

Asian Paints Ltd.'s net profit margin of 12.1% in FY2026 reflects moderate profitability, with operating margin at 17.1% and gross margin at 44.9%.

Understanding Profitability Margins

In FY 2026, Asian Paints Ltd. posted a gross margin of 44.9%, an operating margin of 17.1%, a net margin of 12.1%. Gross Margin = (Revenue - COGS) / Revenue; Operating Margin = EBIT / Revenue; Net Margin = Net Income / Revenue. Typical healthy ranges: Gross 20-40%, Operating 10-20%, Net 5-10%+. Consistent or improving margins indicate strong competitive positioning.

Company Performance

2-year trend showing revenue, gross profit, and net profit

FY 2025 - FY 2026

Asian Paints Ltd.'s revenue grew 5.3% to 363.07B and net profit grew 18.5% to 43.95B YoY in FY2026, indicating moderate business momentum.

Understanding Company Performance

In FY 2026, Asian Paints Ltd.'s revenue grew by 5.3% year-over-year. Revenue is total income from operations. Gross Profit is revenue minus cost of goods. Net Profit is the bottom line after all expenses. Consistent growth across all three signals a healthy, expanding business.

Return on Equity (ROE)

2-year trend showing shareholder returns

FY 2025 - FY 2026

Asian Paints Ltd.'s ROE of 20.0% in FY2026 indicates good shareholder returns.

Understanding Return on Equity (ROE)

In FY 2026, Asian Paints Ltd. reported an ROE of 20.0%. ROE = (Net Income / Shareholders' Equity) x 100. Measures how efficiently the company turns equity into profit. Above 15% is generally strong; above 25% is excellent. Very high ROE may signal high leverage — check alongside debt levels.

Net Income vs Free Cash Flow

2-year trend comparing profitability with cash generation

FY 2025 - FY 2026

Asian Paints Ltd.'s FCF/NI ratio of 1.28x in FY2026 indicates high-quality, cash-backed earnings.

Understanding Net Income vs Free Cash Flow

In FY 2026, Asian Paints Ltd.'s free cash flow exceeded net income. Free Cash Flow = Operating Cash Flow - Capital Expenditure. When FCF exceeds net income, it suggests high-quality, cash-backed earnings. Persistent gaps may indicate aggressive accounting or heavy capex needs.

Net Income vs Operating Cash Flow

2-year trend comparing profitability with cash from operations

FY 2025 - FY 2026

Asian Paints Ltd.'s OCF/NI ratio of 1.61x in FY2026 indicates strong cash collection and working capital efficiency.

Understanding Net Income vs Operating Cash Flow

In FY 2026, Asian Paints Ltd.'s operating cash flow exceeded net income. Operating Cash Flow is the actual cash from core operations. OCF exceeding net income signals strong cash collection. OCF trailing net income may indicate aggressive revenue recognition or working capital issues.

Leverage Ratios

Measure a company's financial leverage, liquidity, and ability to meet financial obligations.

Current Ratio Analysis

2-year trend showing short-term liquidity position

FY 2025 - FY 2026

Asian Paints Ltd.'s current ratio of 2.21x in FY2026 indicates healthy short-term liquidity.

Understanding Current Ratio

In FY 2026, Asian Paints Ltd. reported a current ratio of 2.21. Current Ratio = Current Assets / Current Liabilities. Measures short-term liquidity. A ratio of 1.5-3.0 is generally healthy; below 1.0 signals liquidity risk; above 3.0 may indicate underutilized assets.

Interest Coverage Ratio Analysis

2-year trend showing ability to service debt

FY 2025 - FY 2026

Asian Paints Ltd.'s interest coverage ratio of 31.7x in FY2026 indicates comfortable debt servicing capacity.

Understanding Interest Coverage Ratio

In FY 2026, Asian Paints Ltd. reported an interest coverage ratio of 31.7x. Interest Coverage = EBIT / Interest Expense. Shows how many times operating profit covers interest payments. Above 5x is comfortable; below 1.5x signals potential difficulty servicing debt.

Debt-to-Equity Ratio Analysis

2-year trend showing financial leverage and capital structure

FY 2025 - FY 2026

Asian Paints Ltd.'s debt-to-equity ratio of 0.18x in FY2026 reflects a conservative, low-leverage capital structure.

Understanding Debt-to-Equity Ratio

In FY 2026, Asian Paints Ltd. reported a debt-to-equity ratio of 0.18. Debt-to-Equity = Total Debt / Total Equity. Below 1.0 is conservative; 1.0-2.0 is moderate; above 2.0 indicates higher financial risk. Capital-intensive industries naturally carry higher ratios.

Total Debt Analysis

2-year trend showing total debt with year-over-year changes

FY 2025 - FY 2026

Asian Paints Ltd.'s debt increased 71.5% YoY in FY2026 — rising leverage demands close monitoring.

Understanding Total Debt

In FY 2026, Asian Paints Ltd.'s total debt increased by 71.5% year-over-year. Total Debt includes short-term debt, long-term loans, debentures, and capital leases. YoY changes (shown as percentages) reveal whether the company is leveraging up or deleveraging.

Shares Outstanding

Year-over-year change in diluted shares outstanding

Asian Paints Ltd.'s diluted shares remained virtually unchanged in FY2026.

Over 2 years (FY2025–FY2026), diluted shares remained essentially unchanged at 958.79M.

Understanding Shares Outstanding

In FY 2026, Asian Paints Ltd.'s diluted shares decreased by 0.0% year-over-year. Diluted Shares accounts for stock options, warrants, and convertibles. Positive YoY change means dilution (red); negative means buybacks (green). Consistent dilution above 5% annually is a red flag.

Data from audited consolidated filings. For educational purposes only — not investment advice. Last update: FY 2026