Slides
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Investor Conference Q2 and H1 FY27 Results
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2 Delivering joy since 1942 We exist to Beautify Preserve Transform all spaces and objects, bringing happiness to the world.
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3 Disclaimer This communication, except for the historical information, may contain statements which reflect the Management’s current views and estimates and could be construed as forward-looking statements. The future involves many risks and uncertainties that could cause actual results to differ materially from the current views being expressed. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange and commodity price fluctuations, competitive product and pricing pressures and regulatory developments.
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4 Key Growth Initiatives 01 02 03 04 05 06 Massive Upsurge on Brand Building Innovation for Differentiation and Premiumization Services Ignition Widening the Net in B2B Regional Market Ignition Backward Integration
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5 Bigg Boss Tie-Up Scaled to Five Regional Markets BIGG BOSS PARTNERSHI P Beautiful Homes Brings our vision of personalisation and regionalisation to life Our select range, woven into life inside the house IN THE BIGG BOSS HOUSE Key Offerings Showcased ASIAN PAINTS ROYALE ZONES ACROSS BIGG BOSS HOUSES BANGLA MALAYALAM TELUGU KANNADA TAMIL Painting Service Royale Glitz Apex Ultima Protek Damp Proof NEW LAUNCH Regional Shade Guides Colour guides in Bangla, Telugu, Tamil and Malayalam Bangla Telugu Tamil Malayalam
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6 Regional Campaigns Deepen Consumer Connect KARNATAKA | Apex & Apex Shyne CHHATTISGARH | Apex GUJARAT | Royale UTTAR PRADESH | Apex Shyne ANDHRA PRADESH | Woodtech PU Localised campaigns celebrating regional language, art and culture across states
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7 Apcolite Premium Satin, Now with PU: Best-in-Class Washability WHAT THE UPGRADE DELIVERS PU Satin Finish Best-in-class, silky- smooth satin sheen powered by PU Stain Guard Advanced Stain Guard; everyday marks wipe off easily Anti-Fungal Shield Biopack in the emulsion guards walls against black spots Walls Wood Metal Multi-Surface One satin finish for walls, wood and metal 65,000 WASH CYCLES · BEST -IN-CLASS 6 Years PERFORMANCE WARRANTY* 3 Years WATERPROOFING WARRANTY* 2,100+ SHADES Water-based | Ideal for high-traffic walls *T&C apply.
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8 Rust Shield PU Campaign Highlights Lasting Shine Watch the commercial Superior Strength Durable, long-lasting protection Rich Gloss Finish Smooth, premium sheen 4-Years Warranty Rust protection Brush & Spray Suitable for both applications *T&C apply
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9 Services as a Differentiator Comprehensive assessments Expert execution Service specializing in preventive maintenance of large factories Data-driven model to forecast corrosion Tailor-made maintenance solutions Highly-sophisticated, predictive asset-protection service for B2B Timely completion Tailored colour guidance Dedicated supervision Tech Integration further driving Customer Delight • AI Visualizer – WOW in Shade Selection • AI led Supervision • AI NPS: Customer Delight Score Our flagship direct-to-consumer service Tailored and comprehensive solution End-to-end Project Management Service aimed at partnering clients in executing waterproofing work 01 02 03 04
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10 T H E C R E A T I V E I D E A Delightful disbelief A sceptical father can’t believe a painting project can be this seamless, until his son walks him through the BHPS experience. ON-TIME COMPLETION or 20% money-back* HASSLE -FREE SERVICE Mechanised tools on site AI COLOUR VISUALIZER In-app colour consultation P L U S E X P E R T A S S U R A N C E A T E V E R Y S T A G E Site inspection Dedicated supervision Scan-enabled warranty Through Beautiful Homes Painting Service, we are turning room transformation into an effortless and foolproof experience for our customers. *T&C apply Watch the commercial New Campaign for BHPS: Take the Hassle Out of Painting
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11 Independence Day Campaign Links Colour to Identity "5000+ Colours of Freedom" is a tribute to the colours that shape India's homes and the people who live in them. The campaign celebrates the idea that our homes reflect who we are "Yeh Rang Hi Humara Asli Pata Hai" reinforces how colours often become a more powerful expression of identity for our homes than any address.
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12 B2B Gaining Strength From One Unified Platform EDUCATIONAL CAMPUS INSTITUTIONAL LANDMARKS SPORTS CAMPUS GOVERNMENT INFRASTRUCTURE RESIDENTIAL BUILDINGS RESIDENTIAL VILLAS
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13 Differentiated Formulations Fueling Next-level Tech Innovation KEY DIFFERENTIATOR GenNext Green Technology leading to product innovation Strong Margin Benefit on relevant products once Phase 2 is on-stream 01 Unique Green Chemistry leading to differential functional parameters 02 Indigenous Next-gen VAE emulsions formulated by our own R&D 03 Across Products Usage across strategic set of existing and new products VAE plant, Dahej 150,000 MT VAE capacity p.a. now on stream; VAM (100,000 MT) in Phase 2 1st in India Integrated VAM-VAE ecosystem ₹ ~1,060 Cr Gross block addition in Phase 1 Total CAPEX of ₹ 3,250 cr
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14 Resilient Volume Growth Despite Steep Price Hikes and Festive Season Timing Volume Growth Decorative Business (India)
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15 Resilient Volumes, Stronger Value Growth Through Q2 and H1 ■ Q2 FY27 vs ■ Q2 FY26 ■ H1 FY27 vs ■ H1 FY26 Decorative Business (India)
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16 Industrial Momentum Lifts Overall Coatings Value Growth ■ Q2 FY27 vs ■ Q2 FY26 ■ H1 FY27 vs ■ H1 FY26 Decorative Plus Industrial (India)
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17 Q2FY27: Mid-teen Revenue Growth Led by Volume and Pricing ❑ Decorative Revenues up by 14.5%, driven by healthy volume growth of 6.4% and further aided by pricing actions ❑ Broad-based demand across geographies; rural sustained its lead over urban this quarter ❑ B to B business continues to do well. Strong performances across T1/T2 cities ❑ Distribution footprint widened further, strengthening reach and depth across markets ❑ Beautiful Homes Painting Services continues to perform strongly, backed by high NPS ❑ Innovation-led propositions gaining traction with new products contributing to ~18% of overall revenues ❑ Phase 1 of VAE plant commissioned in Q2FY27; in-house formulations to drive product differentiation
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18 From Surface Décor to Space Décor: Owning the Home Modular Kitchen, Kitchen Hardware & Components Bath Fittings & Sanitaryware Wardrobes and Vanities Fabrics & Furnishings Wall CoveringsFurniture RugsDecorative Lighting uPVC Windows and Doors No. 1 in Wallcovering & Textures ~ 4% of Decorative Revenue Collaborations with Sabyasachi, Jaipur Rugs, Sarita Handa No. 2 in Fabric & Furnishing No. 1 in Decorative Lighting No. 1 Integrated Home Décor Player 74 Beautiful Homes Stores / Studio – One Stop Home Décor Destinations
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19 Home Décor Business • Revenue up 19% in Q2FY27; 7% in H1FY27 • PBT turned positive at ₹9 cr (₹4 cr loss in Q2FY26); H1 at break-even (₹6 cr loss in H1FY26) Weatherseal • Revenue down 2% in Q2FY27 • Revenue up 13% in Q2FY27; 12% in H1FY27 • PBT loss at ₹8 cr in Q2FY27 (₹3.6 cr loss in Q2FY26); H1 loss at ₹8 cr (₹12 cr loss in H1FY26) White Teak • Revenue down 12% in Q2FY27 Note: Figures in columns in ₹ cr 13% 12% 19% 7% 12% 10% 2% 4% Kitchen Bath
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Strong Industrial Growth Continues; Lower Pass-Through Dents Margins 20 PPGAP APPPG ❑ Revenue up 33.7% to ₹795 cr in Q2FY27; Driven by Auto and Industrial segments ❑ PBT up 9.9% to ₹113 cr in Q2FY27; PBT margin of 14.2%, lower by 309 bps ❑ Revenue up 28.0% to ₹375 cr in Q2FY27; Driven by growth in Protective Coatings and Powder segment ❑ PBT down 33.4% to ₹17 cr in Q2FY27; PBT margin of 4.6%, lower by 425 bps Note: Figures in columns in ₹ cr 34% 24% 10% 8% 28% 25% 33% 15%
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21 International Markets BRANDS 1 2 4 5 6 7 3 Nepal Bangladesh Solomon Islands Vanuatu Bahrain Fiji QatarEgypt Oman UAE Sri Lanka Ethiopia Samoa 5 4 1 1 2 3 3 33 7 7 6 6,7 Map not to scale
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22 Premium Launches Across Sri Lanka and the Middle East Royale Infinity | Sri Lanka 01 Luxury benchmark Top-of-range interior emulsion 02 Nano Technology Designed for diamond perfection 03 Flawless finish Smooth, blemish-free walls 04 7-year warranty* Lasting interior beauty Ultima Lamino | Sri Lanka 01 Premium positioning Redefines the exterior coating market 02 100% pure acrylic Reinforced with PU Serum 03 6x elongation Covers cracks up to 4 mm 04 10-year warranty* Lasting exterior protection *T&C apply Majestic | UAE, Bahrain, Oman & Qatar Extended coverage Superior washability Touch-up uniformity Long-lasting premium finish 01 02 03 04 LUXURY EXTERIOR EMULSION Advanced waterproofing INTERIOR EMULSION Outstanding hiding power
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International Business Key Highlights ❑ Revenue up 30% to ₹1,096 cr in Q2FY27; Constant currency growth of 23.7% • Strong growth registered across all regions • Growth led by units in UAE, Bangladesh and Egypt ❑ Q2 PBT down 31% to ₹53 cr; Entire impact of steep inflation felt during the quarter ❑ PBT margin at 4.8% in Q2FY27, lower by 422 bps Note: All figures in columns in ₹ cr 30% 24% 45% 36% 24% 28% 24% 40% 35% 21% 31% 24% 31% 59% 32% 11% 39% 3% 63% 29% 23
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24 Standalone Gross Margin Trend MATERIAL ▼ ~1.1% MATERIAL ▲ ~1.5% PRICE ▲ ~1.2% MATERIAL ▼ ~2.1% PRICE ▲ ~0.4% MATERIAL ▼ ~1.5% PRICE ▼ ~0.4% MATERIAL ▼ ~1% MATERIAL ▼ ~1.6% MATERIAL ▼ ~1.4% MATERIAL ▲ ~25% PRICE ▲ ~7% MATERIAL ▲ ~3% PRICE ▲ ~5% KEY ▲ Material inflation ▼ Material deflation ▲ Price increase ▼ Price decrease Gross margin moderated to 40.3% as higher-cost inventory flowed through after steep inflation in Q1 FY27 Calibrated pricing interventions (~12%) partially offset the impact; Continued efforts on driving sourcing and formulation efficiencies limiting the impact of inflation
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25 Summary Standalone Financials • Net Sales growth of 14.8% to ₹8,424 cr led by volume and aided by pricing actions • Gross Margin at 40.3%, down 339 bps yoy. Impacted by steep inflation and lower price pass-through • PBDIT growth of 5.9% to ₹1,440 cr • PBDIT margin at 17.1%; Lower by 144 bps yoy. Cost optimization initiatives offsetting part of the impact on Gross Margin • PAT higher by 14.6% at ₹1,096 cr Note: Figures in columns in ₹ cr • Net Sales growth of 15.8% to ₹17,580 cr • Gross Margin at 42.1%; Lower by 128 bps yoy • PBDIT growth of 19.8% to ₹3,452 cr • PBDIT margin at 19.6%; Higher by 66 bps yoy • PAT higher by 25.1% at ₹2,574 cr 15% 6% 6% 14% 15% 16% 13% 20% 25% 25%
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26 Summary Consolidated Financials Note: Figures in columns in ₹ cr; PAT is before minority interest • Net Sales growth of 16.9% to ₹9,954 cr due to elevated growth trajectory across all businesses • Gross Margin at 39.6%; lower by 349 bps yoy • PBDIT growth of 3.6% to ₹1,557 cr • PBDIT margin at 15.6%; lower by 202 bps yoy • PAT before minority interest higher by 6.6% at ₹1,085 cr • Net Sales growth of 17.4% to ₹20,475 cr • Gross Margin at 41.6%; lower by 124 bps yoy • PBDIT growth of 19.1% to ₹3,726 cr • PBDIT margin at 18.2%; higher by 26 bps yoy • PAT before minority interest higher by 23.9% at ₹2,645 cr 17% 8% 4% 6% 7% 17% 14% 19% 23% 24%
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27 Total Dividend 2750% ₹27.50 Final 2300% ₹23.00 Interim 450% ₹4.50 H1 FY27 Interim Dividend ₹5.75 575% Dividend Distribution FY26 Dividend Build-up • Dividend Per Share increase is 27.8% while H1 PAT grew by 25.1% • Dividend Payout Ratio broadly similar – 21.4% in H1FY27 vs 21.0% in H1FY26
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28 Outlook ❑ Raw material inflation and supply chain volatility continue to weigh on gross margins while competitive intensity remains elevated, keeping the near-term operating environment challenging ❑ We will respond with differentiation – deepening consumer connect, investing behind brand building and innovation fueling unique product propositions – to drive the demand momentum further as well as deliver sustained profitable growth ❑ Key priorities for Q3FY27 will include: ❖ Capitalize on festive and wedding season demand with disciplined execution across markets ❖ Sustain investment in innovation and brand-building, leveraging the newly commissioned VAE capacity to scale differentiated in-house formulations ❖ Drive calibrated pricing and cost efficiencies to improve margins while safeguarding demand momentum
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WATER NEUTRALITY Fresh water replenishment 5.9x 8.9x Target 6.0x NATURE POSITIVE Reduction in specific hazardous waste / KL of finished product (%) 70% 76% Target 83% NATURE POSITIVE Reduction in specific effluent generated per KL of finished product (%) 79% 81% Target 81% NATURE POSITIVE Reduction in Scope 1 & 2 emissions / KL of finished product (%) 69% 71% Target 80% NATURE POSITIVE Recycled plastic in packaging (%) 40% 50% Target 60% PRODUCT STEWARDSHIP Renewable / bio-based raw materials in products (%) 7.0% 6.6% Target 8.5% GREEN ENERGY Renewable electricity (%) 57% 62% Target 100% WATER NEUTRALITY Reduce specific non-process water intensity (KL/KL) 0.44 0.42 Target 0.24 COMMUNITY OWNERSHIP Trained at Asian Paints Beautiful Homes Academy (in lakhs) 9.5 4.7 Target 10 EQUITABLE & INCLUSIVE WORKPLACE Employee engagement score (%) 82% 82% Target 80% Performance in H1FY27 Target for FY2030Performance in FY2026 Asian Paints Sustainability Report FY26 ↗ Asian Paints Sustainability Report FY26 29 Strong ESG Framework: Progress on Sustainability Targets
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THANK YOU