Akzo Nobel India reported a revenue decrease in Q2 FY2026, with revenue from operations at ₹834.9 crore, a 1.5% drop. This announcement comes after the company’s strategic divestment of its Powder Coatings business. Despite the revenue dip, PAT, including exceptional items, reached ₹1,682.7 crore due to a one-time gain. Management remains focused on profitability amid challenging market conditions.
Financial Performance Overview
Akzo Nobel India’s financial results for Q2 FY2025-26 reveal a mixed performance influenced by strategic business decisions and market dynamics.
- Revenue from operations: ₹834.9 crore, a 1.5% decrease compared to ₹847.7 crore in the corresponding quarter last year.
- EBIT from operations: ₹92.3 crore, down 2.4% from ₹94.5 crore.
- PAT (including exceptional items): Substantially increased to ₹1,682.7 crore, a 2119.8% surge from ₹75.8 crore, primarily due to proceeds from the sale of the Powder Coatings business.
H1 FY2025-26 Results
The first half of the fiscal year also reflects the impact of business restructuring:
- Revenue from operations: ₹1,830.0 crore, a decrease of 2.9% from ₹1,884.0 crore.
- EBIT from operations: ₹208.5 crore, down 13.7% from ₹241.6 crore.
- PAT (including exceptional items): ₹1,773.7 crore, a significant rise from ₹190.4 crore in the previous year.
Strategic Divestment and Exceptional Items
The company completed the sale of its Powder Coatings business division and the International Research Center during the quarter. This resulted in an exceptional profit of ₹18,925 million. However, a provision of ₹79 million was made for the impairment of related assets, along with a retention incentive provision of ₹104 million.
Management Commentary
Rajiv Rajgopal, Chairman and Managing Director of Akzo Nobel India Limited, noted that volume growth was partially offset by weather disruptions and competitive pressures. The company remains focused on controlling operational costs and driving profitability amid challenging market conditions.
Impact of Divestment
The Q2 and H1 2026 financial results are not directly comparable to previous periods due to the divestment of the Powder Coatings business division and the International Research Center.
Earnings Per Share
Basic and diluted earnings per share stand at ₹369.52 for the quarter and ₹389.50 for the half-year period.
Source: BSE
