New Delhi, Oct. 30 -- Asian Paints' consolidated gross margin felt the heat of high-cost inventory absorption in the September quarter (Q2FY27), sliding to a 15-quarter low of 39.7%, down around 350 basis points (bps) year-on-year. The cost of goods sold rose 24% year-on-year last quarter. Since this pressure was already anticipated, Asian Paints took a 5% price hike in Q2, following the 7% increase in Q1.

The raw material inflation scenario remains uncertain, so a further price increase of 3.5% has been announced for November. This also factors in the anti-dumping duty on key input titanium dioxide (TiO2). Asian Paints estimates a cost impact of 2-3% from the duty, which it is mitigating by rationalizing TiO2 use through alternative che...