Dulux paintmaker Akzo Nobel India's profit drops on retail pressure, monsoons

JSW Dulux

06/11/2025 15:29

Nov 6 (Reuters) - Akzo Nobel India's AKZO.NS second-quarter adjusted profit fell on Thursday as weak retail demand and heavy monsoons dampened demand for its paints.

Consolidated net profit before exceptional items and tax fell 26% to 978 million rupees ($11.1 million) for the July-September quarter. Revenue decreased 15% to 8.35 billion rupees.

The company, which is home to the "Dulux" brand, recorded an exceptional capital gain of 18.74 billion rupees, tied to a divestment deal it executed with its Dutch parent Akzo Nobel NV AKZO.AS.

Chairman Rajiv Rajgopal flagged a hit from weather conditions and competition, and said retail demand "remained under pressure" in the reported quarter.

For further earnings highlights, click here.

KEY CONTEXT

JSW Group's June purchase of Akzo Nobel India has shifted investor focus to its ramp-up plan after years of the latter lagging Asian Paints ASPN.NS, Kansai Nerolac KANE.NS and Berger Paints BRGR.NS.

The turnaround faces headwinds as consumers opt for cheaper brands and heavy monsoon rains delay projects despite signs of firmer urban demand.

Kansai and Berger both reported lower profits citing heavy monsoon. Asian Paints will report earnings next week.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
No. of analysts
Stock to price target**
Div yield (%)
Akzo Nobel India
AKZO.NS
30.84
19.85
6.30
8.23
Buy
2
0.84
3.09
Kansai Nerolac Paints
KANE.NS
27.34
16.76
6.66
20.18
Hold
11
0.90
1.01
Asian Paints
ASPN.NS
52.55
34.73
6.56
9.58
Hold
34
1.04
1.00
Berger Paints India
BRGR.NS
46.39
29.98
8.04
9.00
Hold
22
0.98
0.71

* 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

JULY - SEPTEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 87.8950 Indian rupees

AKZO Q2 https://tmsnrt.rs/4nEYq4x

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Nivedita Bhattacharjee and Sahal Muhammed)

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