Brent crude, a key raw material for paint makers, was down around 5% on the day, providing relief on input costs.

The brokerage expects Asian Paints to deliver volume growth of about 11% in Q4, aided by improving cost dynamics and a shift toward more rational competitive behaviour in the industry. It noted that a new paint entrant is likely to adopt a more measured strategy following price hikes implemented in January.

The research firm also expects a reversal of the earlier 10% promotional intensity on 4-litre packs. From a valuation perspective, the brokerage said Asian Paints is now trading in a more comfortable zone.

Asian Paints, established in 1942, is the largest listed company in India's decorative paints segment. It ranked among the top eight decorative coatings companies in the world. It is engaged in the business of manufacturing, selling, and distributing paints, coatings, and products related to home décor and bath fittings and providing related services.

The company’s consolidated net profit declined 4.55% to Rs 1,059.87 crore in Q3 FY26 as against Rs 1,110.48 crore in Q3 FY25. However, revenue from sales rose 3.85% year on year (YoY) to Rs 8,849.72 crore in Q3 FY26.