Asian Paints' (APL) Q1FY16 results came ahead of our estimates (1) revenue jumped 7.8% YoY to Rs36.2 bn Vs est of Rs36.1 bn (2) Operating profit increased 28.6% YoY to Rs6.8 bn Vs est of Rs5.8 bn(3) Operating margin expanded by 310 bps YoY to 18.9% vs est of 16.2% and (4) APAT grew 34.4% YoY to Rs4.6 bn Vs est of Rs3.7bn. We have upward revised our FY16E and FY17E EPS estimates to factor in Q1FY16 performance and significant RM gains during the quarter. We have revised price target to Rs858/Share and maintain our HOLD rating.