APL/SEC/57/2026-27/42

Nature of Disclosure: Regulatory filing pursuant to Regulation 30 of SEBI Listing Regulations, submitting the investor presentation for the quarter and half year ended 30th September 2026. The audio recording and transcript will be uploaded on the company website and stock exchanges.

Key Financial Performance – Standalone (Q2 FY27):

  • Net Sales: ₹8,424 crore, growth of 14.8% YoY
  • Volume Growth: 6.4% in Decorative Business (India)
  • Gross Margin: 40.3%, down 339 basis points YoY
  • PBDIT: ₹1,440 crore, growth of 5.9% YoY
  • PBDIT Margin: 17.1%, down 144 basis points YoY
  • PAT: ₹1,096 crore, growth of 14.6% YoY

Key Financial Performance – Standalone (H1 FY27):

  • Net Sales: ₹17,580 crore, growth of 15.8% YoY
  • Gross Margin: 42.1%, down 128 basis points YoY
  • PBDIT: ₹3,452 crore, growth of 19.8% YoY
  • PBDIT Margin: 19.6%, up 66 basis points YoY
  • PAT: ₹2,574 crore, growth of 25.1% YoY

Key Financial Performance – Consolidated (Q2 FY27):

  • Net Sales: ₹9,954 crore, growth of 16.9% YoY
  • Gross Margin: 39.6%, down 349 basis points YoY
  • PBDIT: ₹1,557 crore, growth of 3.6% YoY
  • PBDIT Margin: 15.6%, down 202 basis points YoY
  • PAT before minority interest: ₹1,085 crore, growth of 6.6% YoY

Key Financial Performance – Consolidated (H1 FY27):

  • Net Sales: ₹20,475 crore, growth of 17.4% YoY
  • Gross Margin: 41.6%, down 124 basis points YoY
  • PBDIT: ₹3,726 crore, growth of 19.1% YoY
  • PBDIT Margin: 18.2%, up 26 basis points YoY
  • PAT before minority interest: ₹2,645 crore, growth of 23.9% YoY

Business Segment Performance:

Decorative Business (India):

  • Revenue growth of 14.5% driven by healthy volume growth of 6.4% and pricing actions
  • Broad-based demand across geographies; rural sustained lead over urban
  • B2B business performed well across T1/T2 cities
  • Distribution footprint widened further
  • Beautiful Homes Painting Services performed strongly with high NPS
  • Innovation-led propositions gained traction with new products contributing ~18% of overall revenues

Home Décor Business:

  • Revenue up 13% in Q2FY27; 12% in H1FY27
  • PBT loss at ₹8 crore in Q2FY27 (₹3.6 crore loss in Q2FY26); H1 loss at ₹8 crore (₹12 crore loss in H1FY26)
  • White Teak revenue down 12% in Q2FY27
  • Weatherseal revenue down 2% in Q2FY27

Industrial Coatings – PPGAP:

  • Revenue up 33.7% to ₹795 crore in Q2FY27 driven by Auto and Industrial segments
  • PBT up 9.9% to ₹113 crore in Q2FY27
  • PBT margin of 14.2%, lower by 309 bps

Industrial Coatings – APPPG:

  • Revenue up 28.0% to ₹375 crore in Q2FY27 driven by Protective Coatings and Powder segment
  • PBT down 33.4% to ₹17 crore in Q2FY27
  • PBT margin of 4.6%, lower by 425 bps

International Business:

  • Revenue up 30% to ₹1,096 crore in Q2FY27; constant currency growth of 23.7%
  • Strong growth across all regions, led by units in UAE, Bangladesh and Egypt
  • Q2 PBT down 31% to ₹53 crore due to steep inflation impact
  • PBT margin at 4.8% in Q2FY27, lower by 422 bps

Operational Highlights:

  • Phase 1 of VAE plant commissioned in Q2FY27 with 150,000 MT capacity p.a. (first in India)
  • Gross block addition of ₹~1,060 crore in Phase 1
  • Total CAPEX of ₹3,250 crore for integrated VAM-VAE ecosystem
  • VAM (100,000 MT) capacity planned for Phase 2
  • Bigg Boss partnership scaled to five regional markets
  • Launch of regional shade guides in Bangla, Telugu, Tamil and Malayalam
  • Apcolite Premium Satin upgrade with PU for best-in-class washability
  • Rust Shield PU campaign with 4-year warranty
  • New campaign for Beautiful Homes Painting Service (BHPS)
  • "5000+ Colours of Freedom" Independence Day campaign

Dividend Distribution:

  • Interim Dividend declared for H1 FY27: ₹5.75 per share (575%)
  • Dividend Per Share increase of 27.8% while H1 PAT grew by 25.1%
  • Dividend Payout Ratio: 21.4% in H1FY27 vs 21.0% in H1FY26

Outlook and Priorities for Q3FY27:

  • Raw material inflation and supply chain volatility continue to weigh on gross margins
  • Competitive intensity remains elevated
  • Key priorities include capitalizing on festive and wedding season demand, sustaining investment in innovation and brand-building, leveraging VAE capacity, and driving calibrated pricing and cost efficiencies

ESG Framework: Strong progress on sustainability targets mentioned without specific details.