Best Paint Stocks in August 2025 - Kansai Nerolac, Asian Paints & More – Net Profit Margin Basis

India’s paints and coatings market is poised for growth, with its size projected to rise from USD 10.46 billion in 2025 to USD 16.37 billion by 2030, reflecting a CAGR of 9.38%. With increasing demand for architectural coatings in both residential and commercial projects, the paint industry is witnessing heightened interest. In this article, find the best paint stocks in India in August 2025, based on various parameters.

Best Paint Stocks in August 2025 – Based on Net Profit Margin

Note: The list of best paint stocks in August 2025 is as of July 31, 2025. The stocks are sorted based on the net profit margin.

Overview of Best Paint Stocks in August 2025

1. Sirca Paints India Ltd

Sirca Paints India Ltd is involved in the manufacturing, sale, and export of wood coatings and other decorative paints, marketed under the ‘Sirca’ brand. For FY25, Sirca Paints India Ltd reported a revenue from operations of ₹374 crore, up from ₹311.72 crore in FY24, reflecting a healthy year-on-year growth. However, the company’s Profit After Tax (PAT) saw a slight decline, coming in at ₹49.10 crore in FY25 compared to ₹51.43 crore in the previous financial year.

Key Metrics:

• ROCE: 21.23%
• ROE: 17.91%

2. Kansai Nerolac Paints Ltd

Kansai Nerolac Paints primarily operates in the manufacturing of paints and holds a leading position in the industrial coatings segment. For the year, Kansai Nerolac Paints reported net revenue of ₹7,496.7 crore, reflecting a 1.4% increase compared to the previous year. Profit before tax (PBT), excluding exceptional items, stood at ₹907.4 crore, marking a 1.7% decline from the same period last year.

Key Metrics:

• ROCE: 22.31%
• ROE:19.04%

3. Asian Paints Ltd

Asian Paints, India’s leading home décor company with a legacy of over 80 years, houses prominent brands such as Asian Paints and Apco under its portfolio.

In Q1 FY26, Asian Paints reported consolidated net sales of ₹8,924.5 crore, marking a marginal decline of 0.2% from ₹8,943.2 crore in the same quarter last year. The net profit after minority interest stood at ₹1,099.8 crore, reflecting a 6% drop from ₹1,170.0 crore recorded in the corresponding period of the previous fiscal.

Key Metrics:

• ROCE: 23.99%
• ROE:18.58%

4. Indigo Paints Limited

Indigo Paints is involved in the manufacturing and sale of decorative paints. In Q4 FY25 (standalone), the company reported revenue from operations of ₹367.2 crore, reflecting a modest year-on-year (YoY) growth of 0.3%. The PAT stood at ₹56.9 crore, marking a 6.3% YoY increase.

Key Metrics:

• ROCE:19.65%
• ROE:17.56%

5. Berger Paints India Ltd

Berger Paints India is involved in the manufacturing and selling of paints. For FY 2024–25, the company reported a total revenue of ₹10,169.22 crore. The net profit for the year reached ₹1,077.50 crore, with ₹236.92 crore in Q4 and ₹306.08 crore in Q3.

Key Metrics:

• ROCE: 24.19%
• ROE:20.43%

Best Paint Stocks in August 2025 – Based on Return on Investment

Note: The list of best paint stocks in August 2025 is as of July 31, 2025. The stocks are sorted based on the return on investment.

Best Paint Stocks in August 2025 – Based on 5yr CAGR

Note: The list of best paint stocks in August 2025 is as of July 31, 2025. The stocks are sorted based on the 5yr CAGR.

Key Factors to Consider Before Investing in Paint Stocks

• Raw Material Dependency: Paint companies rely heavily on crude-based inputs like solvents and resins, any spike in crude prices can squeeze margins.
• Real Estate-Driven Demand: Growth in housing, infrastructure, and renovation directly boosts paint consumption, especially in the decorative segment.
• Seasonal Cycles: Festive seasons and post-monsoon periods often see spikes in paint demand, impacting quarterly performance.
• Product Innovation: Companies launching waterproofing, texture paints, or low-VOC solutions often command better margins and retain premium customers.
• Expansion Strategy: New plant setups or entry into adjacent segments like waterproofing and adhesives indicate long-term growth plans.
• Profitability Metrics: Healthy EBITDA margins and return ratios like ROE and ROCE reflect financial strength and operational efficiency.

Also Read: Best Gold ETFs in India in August 2025 Based on 5yr CAGR!

Conclusion

While paint stocks can offer steady growth backed by urbanization, real estate demand, and brand loyalty, it's important to align your investments with your financial goals, risk appetite, and time horizon. Always assess the fundamentals, industry trends, and company-specific strengths before making a decision.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.