AkzoNobel India reported a 1% revenue decline to ₹907.7 crore for Q3 FY26, though like-for-like domestic growth was 2%. Decorative volume grew a strong 8%. Management emphasized the strategic shift post-integration with JSW, prioritizing volume and revenue growth. Key focus areas include leveraging the combined distribution scale, maintaining margin discipline (targeting 14.5% to 15% EBITDA), and competitive pricing strategies in the premium segments.
Q3 FY26 Financial Summary and Like-for-Like Performance
For the quarter ended December 31, 2025, AkzoNobel India reported total revenue of ₹907.7 crore, marking an approximate 1% decline. However, the management highlighted that the standalone domestic business grew by about 2%. This revenue figure reflects an estimated ₹200 crore offset due to the carve-out of the powder coating entity and cessation of certain export activities like Dramatone.
On a blended basis across decorative and industrials, the company saw volume growth of 6% and revenue growth close to 2%. The Decorative segment performed exceptionally well, delivering 8% volume growth. A significant highlight was the commencement of growth in the premium segment, though the Mass Economy Primer (MEP) remains a focus area requiring strategic enrichment of premium primers.
Post-Merger Strategy and Growth Mandate
Rajiv Rajgopal stated that the new mandate, under the JSW Group, places volume growth and revenue growth as the primary mantra for the business, contrasting with typical MNC focus. The company is using science and data, including price elasticity studies, to optimize pricing. Early analysis showed the company was overpriced by 5% to 9% in premium brands, leading to volume erosion, which they are now addressing.
The coatings business saw faster growth in coil, automotive, and speciality coatings, though this was partially impacted by a high base from last year’s naval projects. The management expressed confidence heading into the final quarter of the fiscal year, especially under the new leadership structure.
Financial Health and Integration Updates
Krishna R confirmed that, excluding exceptional items (like labor code impacts), the Profit After Tax (PAT) grew by around 5.9% year-on-year. Gross margins were protected, showing a sequential improvement of 80 basis points. The company deployed royalty savings back into growth initiatives. The current free cash position is ballparked at ₹200 to ₹225 crores, earmarked for growth and CAPEX.
Regarding the integration, the proposed new name, JSW Dulux, has been shared for shareholder voting. While the decorative IP acquisition in June 2025 eliminated about ₹60 to ₹65 crores in decorative royalty payments (which will be redeployed for growth), industrial coatings royalty payments will continue as per existing agreements.
Competitive Landscape and Guardrails
On competition, management acknowledged the significant initial impact from new entrants, noting pricing gaps of 12% to 18% lower in certain areas, though they believe the worst of the promotional intensity might take 2-3 quarters to normalize.
For success markers over the next three years, the primary goal is to quickly move from being the fourth player to the number three player, and ultimately number two in coatings. The key guardrails involve ensuring premium and luxury brands grow in line with or outperform the competitive landscape while maintaining a focus on innovation. The target EBITDA margin band is set between 14.5% and 15%, with an endeavor to move towards 15% to 16% over time.
Rajiv Rajgopal concluded by emphasizing that cash generation is a core strength, noting the business delivers cash consistently, a factor exciting for the leadership team inheriting the business.
Source: BSE
