By BullScreen Editorial Team 
Shares of Asian Paints climbed more than 3% in early trading on Monday after the company delivered stronger-than-expected fourth-quarter earnings, leading several brokerages to maintain positive ratings on the stock. The stock was trading at Rs 2,752.40, up 3.02% from its previous close.
India’s largest paint manufacturer reported a strong Q4 FY26 performance, with consolidated net profit rising 69.3% year-on-year to Rs 1,172.1 crore. Consolidated net sales increased 10.8% to Rs 9,228.5 crore, while profit before exceptional items and tax grew 33.9% to Rs 1,614.1 crore. The company also announced a final dividend of Rs 23 per share, taking the total FY26 dividend payout to Rs 27.50 per share.
The earnings performance exceeded market expectations across revenue growth, volume expansion, and margins. Asian Paints, with a market capitalization of around Rs 2.56 lakh crore, has delivered gains of over 22% in the past year, sharply outperforming the Nifty 50, which fell 4.4% during the same period.
Brokerage opinions, however, remain divided. Nomura reiterated a buy rating with a target price of Rs 3,600, indicating nearly 34% upside potential. Jefferies and Macquarie also maintained positive views, highlighting strong domestic volume growth and better operating performance.
On the other hand, HSBC, CLSA, Morgan Stanley, and Citi maintained cautious stances, citing concerns around rising raw material costs, dealer pre-buying ahead of price increases, and sustained competitive pressure.
Management said additional price hikes remain under consideration to offset increasing input costs while maintaining margin guidance of 18-20%. The company also expects volume growth of 8-10% in FY27, which investors are likely to watch closely in the coming quarters.