Asian Paints Limited (NSE:ASIANPAINT) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Last week saw the newest quarterly earnings release from Asian Paints Limited (NSE:ASIANPAINT), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of ₹89b and statutory earnings per share of ₹11.47 both in line with analyst estimates, showing that Asian Paints is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Asian Paints from 35 analysts is for revenues of ₹355.0b in 2026. If met, it would imply an okay 4.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 20% to ₹44.81. In the lead-up to this report, the analysts had been modelling revenues of ₹359.0b and earnings per share (EPS) of ₹45.67 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Asian Paints

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹2,399. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Asian Paints analyst has a price target of ₹2,935 per share, while the most pessimistic values it at ₹1,909. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Asian Paints' revenue growth is expected to slow, with the forecast 6.6% annualised growth rate until the end of 2026 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Asian Paints.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Asian Paints' revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹2,399, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Asian Paints going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Asian Paints that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.