Asian Paints saw decorative volumes grow 8% in the December quarter, down from 11% in the previous quarter. This slowdown reflects reduced repainting activity. However, international business revenue rose 6.3%, showing steady performance in key markets. The company expects steady progress from offshore units, helped by exiting its loss-making Indonesia operations and lower raw material costs. Consumers are spending more on travel and hospitality, leading to less frequent repainting. But luxury and premium housing markets are growing, increasing demand for waterproofing and construction chemicals. Despite soft demand, Asian Paints improved its EBITDA margin by 90 basis points year-on-year to 20.1%, driven by lower raw material costs. For FY26, the company forecasts a 5% value growth, which trails its near double-digit volume growth expectations, indicating subdued pricing power. The home decor segment is stabilizing with kitchen fittings losses narrowing and the bath segment nearing break-even. The decorative retail division remains under pressure, but the commercial B2B and project businesses outperformed due to orders from factories and government clients. Brokerages have cut earnings estimates for FY26-28 by 1-3% and trimmed target prices by up to 10%, citing slower than expected growth in the core decorative business. Asian Paints continues to rely on cost savings, new product launches, and steady non-paint segment performance to maintain profitability as demand recovery remains slow.