Akzo Nobel India's quarterly profit drops on weak retail demand

JSW Dulux

04/08/2025 09:46

Aug 4 (Reuters) - Akzo Nobel India AKZO.NS reported a lower first-quarter profit on Monday, hurt by weak retail demand for its paints, including the premium 'Dulux' brand.

Consolidated net profit fell more than 20% year-on-year to 910 million rupees ($10.39 million) for the April to June quarter, while revenue slid 4% from last year.

For further earnings highlights, click here

KEY CONTEXT

Akzo Nobel India was acquired by steel-to-autos conglomerate JSW Group for about $1.6 billion in June, shifting investor focus to the company's turnaround strategy after years of trailing larger rivals such as Asian Paints ASPN.N, Kansai Nerolac KANE.NS and Berger Paints BRGR.NS.

The deal came amid rising competitive pressure in India's paints industry and subdued demand, as urban consumers delayed non-essential spending or opted for low-cost alternatives.

Last week, market leader Asian Paints said that retail weakness was showing early signs of abating. Smaller peers weathered the slowdown relatively well, thanks to their exposure across sectors and industries, analysts noted.

Kansai Nerolac and Berger are scheduled to report their earnings later this week.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Akzo Nobel India
AKZO.NS
33.75
21.98
7.75
10.84
Buy
2
0.99
2.75
Asian Paints
ASPN.NS
52.30
34.60
5.43
7.45
Hold
34
1.02
1.02
Kansai Nerolac Paints
KANE.NS
27.00
16.59
7.17
27.04
Hold
13
0.88
1.00
Berger Paints India
BRGR.NS
49.32
30.86
8.79
10.24
Hold
20
1.05
0.67

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

APRIL-JUNE STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 87.5690 Indian rupees

AKZO INDIA Q1 https://tmsnrt.rs/40PMwwa

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Sumana Nandy)

 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))