Asian Paints To Raise Prices Again As Cost Pressures Persist

Asian Paints is going in for another price hike. The company has announced a second round of increases, in the range of 3-5%, and this time, the new prices will kick in from 05 May 2026.

The reason is fairly straightforward. Input costs have not cooled off, especially those linked to crude and petrochemicals. And instead of waiting it out, the company is choosing to pass some of that pressure on.

So, what exactly is driving these costs higher right now, and how long could this trend last?

Why Are Paint Prices Going Up Again?

The pressure is coming straight from raw materials, and crude oil sits at the centre of it.

Companies in the paint sector use petrochemical derivatives across the board, whether it is additives, solvents, or packaging. So, when crude prices inch up, input costs follow quickly. Over the past few weeks, crude-linked inputs have become more expensive again due to tensions in the Middle East, which is now feeding into overall costs.

It is also important to see this in context. Just last month, Asian Paints had already implemented a price hike of around 6–8%, rolled out through April. Even after that, cost pressures have remained, which explains why another increase is now being pushed through, effective May.

What Makes Asian Paints One Of The Leading Players In This Space?

Back in 1942, Asian Paints began as a small partnership between four friends. Over time, it scaled steadily and went on to become one of India’s leading paint companies. And it has held on to that position for decades.

The brand is no longer just about paints. Decorative and industrial paints still form the core, but the company has steadily expanded into waterproofing, adhesives, and even the broader home décor space. This includes modular kitchens, wardrobes, bath fittings, lighting, and furnishings.

The company’s scale is quite visible today. Its customer base is spread across 60+ countries, with a presence in Asia, the Middle East, Africa, and the South Pacific.

Financially, for Q3 FY 2025–26, consolidated net sales rose 3.9% to ₹8,849.7 crore. Net profit, however, declined 4.6% to ₹1,059.9 crore.

So the business is still growing, but margins are feeling some pressure.

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How Is Asian Paints Stock Moving, And What Should Investors Watch Next?

Asian Paints saw a bit of traction in trade on 20 April 2026. It opened at ₹2,470 and moved up to around ₹2,507 by 11:32 AM.

Returns over the past year have been modest, at about 2.8%. But the last month tells a different story. The stock has picked up, gaining around 14.5%.

So there is some optimism, but also a few things to be cautious about.

On one side, price hikes like these can support margins, especially if input costs remain elevated. If the company is able to pass on costs without hurting demand too much, profitability could stabilise.

But there are risks as well. The biggest one remains crude-linked raw material costs. If costs keep moving up or stay unstable, further price increases may be unavoidable. That could start to hit demand. There is also competitive intensity in the sector, with new players trying to gain market share, which could limit pricing power over time.

From here, much will depend on the direction of input costs and the industry’s ability to balance pricing with demand.

Sources:

NDTV

CNBC TV18