Dulux paint maker Akzo Nobel India posts profit fall on impact of new labour codes

JSW Dulux

02/02/2026 16:12

Feb 2 (Reuters) - Akzo Nobel's Indian unit AKZO.NS posted a decline in third-quarter profit on Monday, hit by charges related to the country's new labour codes, with the year-ago quarter boosted by earnings from its now-divested powder coatings business.

Akzo Nobel India, a unit of Dutch paint maker Akzo Nobel NV AKZO.AS, posted a consolidated net profit of 743 million rupees ($8.12 million) in the quarter ended December 31, a near 32% drop from the previous year. Revenue fell around 14% to 9.08 billion rupees.

The bottom line was also impacted by one-time charges of 283 million rupees, including costs related to the country's new labour codes.

It had earlier divested its powder coatings business and international research center. Earnings from that segment were included in the year-ago quarter, contributing to a sharper year-on-year decline in reported revenue in the latest quarter.

The company, which is home to the "Dulux" brand, said comparable revenue, excluding the impact of the divested business and one-time charges, fell 1%, while profit rose 6%.

For further earnings highlights, click here.

KEY CONTEXT
In September, India's antitrust body cleared JSW Paints' $1.6 billion deal to acquire up to 75% stake in the unit at a time when paint makers in the country are grappling with rising raw material costs and competition.

After the deal closes, Akzo Nobel India will be renamed JSW Dulux, and as part of the conglomerate, it will become the fourth-largest player in a market dominated by Asian Paints ASPN.NS, Berger Paints BRGR.NS and Kansai Nerolac KANE.NS, a Geojit Financial Services analyst said.

Analysts at Ambit Capital expected volume growth for paint companies during the quarter, but anticipated that a negative price mix and heightened competition would pressure revenue.

Bigger rival and market leader Asian Paints also reported a surprise profit drop due to a one-time charge tied to the country's new labour laws.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Price/Sales
Revenue growth
Profit growth
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Akzo Nobel India Ltd
AKZO.NS
26.94
17.50
NULL
2.17
18.67
Buy
2
0.78
3.59
Kansai Nerolac Paints Ltd
KANE.NS
24.01
15.05
NULL
7.84
16.36
Hold
11
0.83
1.11
Berger Paints India Ltd
BRGR.NS
40.72
25.80
NULL
8.69
13.82
Hold
21
0.83
0.82
Asian Paints Ltd
ASPN.NS
48.34
32.36
NULL
6.94
10.69
Hold
35
0.88
1.04

* 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

OCTOBER TO DECEMBER STOCK PERFORMANCE

 -- All data from LSEG

-- $1 = 91.4960 Indian rupees

TTEX https://tmsnrt.rs/4qV4WGN

 (Reporting by Urvi Dugar and Nishit Navin in Bengaluru; Editing by Sherry Jacob-Phillips and Vijay Kishore)

 ((UrviManoj.Dugar@thomsonreuters.com; +91 9558725583;))