MUMBAI, Oct. 29 -- Asian Paints Ltd faces a delicate pricing decision as raw material inflation eats into profitability: raise prices too aggressively and households could put off painting or switch to cheaper products; absorb too much of the increase and margins will come under further pressure.

The country's largest paint maker is wary of passing on the full increase in input costs to consumers, managing director and chief executive Amit Syngle said.

Painting is a discretionary household expense, making demand particularly sensitive to price increases. Consumers could postpone maintenance and repainting or trade down to lower-priced products if inflation crosses a certain threshold, Syngle told analysts in a post-earnings interaction ...