Akzo Nobel India Limited has informed the Exchange about Transcript
JSWDULUX · price
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Akzo Nobel India reported a weak Q1 FY26 with revenue declining about 4% and flat volumes, hurt by a sharp June dip caused by dealer and customer uncertainty around the ongoing strategic review (JSW Paints acquisition). Gross margins saw some dilution due to an unfavorable business mix, while EBIT/EBITDA also took a hit from investments in digital and lead management projects. Management said July has bounced back strongly as anxiety around the ownership change has settled. The company guided to high single-digit revenue growth for FY26, down from earlier hopes of double digits, and refused to give specific EBITDA or margin guidance, saying margins will stay in the range of the last two to three quarters. The Marine and Protective coatings business has a strong order book and is expected to deliver stronger growth next quarter. The powder coatings business will be classified as discontinued operations from July 1, and ex-powder like-to-like numbers will be shared at the H1 results.
Shareholders should expect a one-time Q1 drag tied to the JSW acquisition transition rather than a structural issue, with management signaling a recovery is already underway in July. Margin visibility remains limited as management is declining guidance pending the deal closure and the H1 disclosure. The rebranding to a JSW-linked entity within a year and continued strong dividends remain near-term positives.