India's JSW Dulux expects double-digit volume growth despite Middle East headwinds

JSW Dulux

15/05/2026 11:34

CEO warns demand softness may emerge in near term

Aims to expand mid-market presence, potentially impacting short-term margins

Integration into JSW Group expected to bolster margins from H2 fiscal 2027

By Urvi Dugar

BENGALURU, May 15 (Reuters) - Indian paint maker JSW Dulux JSWD.NS expects to log double-digit volume growth in fiscal year 2027 but warned margins will face pressure in the near term due to volatile input costs related to Middle East uncertainty, a top executive told Reuters on Friday.

The warning highlights how increases in crude oil-linked raw material costs increases related to the war in the Middle East are squeezing profitability across India's paint sector even as demand stays robust. The higher costs are forcing paint makers to hike prices, while disruptions in gas supply are also taking a toll on production.

"There are challenges… a lot of the workshops are not running full steam because of non-availability of gas," CEO Rajiv Rajgopal said, adding demand softness could become clearer from mid-June through July.

Dulux raised prices about 10% between March and May, but margins remain under pressure as oil-linked cost increases outpaced product price hikes. Oil prices have risen sharply since the conflict began in February and Brent crude oil futures LCOc1 were trading at $107.49 a barrel at 0642 GMT on Friday.

The impact has so far been limited on JSW Dulux's bottom line. On Wednesday, it posted a roughly 16% rise in March quarter net profit from a year ago while logging volume growth of about 7% for fiscal 2026.

Rajgopal said it was too early to assess any slowdown in discretionary home improvement demand.

The paint maker, which competes with the likes of Asian Paints ASPN.NS and Grasim Industries' GRAS.NS Birla Opus, is ramping up its mid-market presence and targeting mass urban consumers to counter intensifying competition, a move that could weigh on margins in the short term, he added.

Now part of the JSW Group after last year's $1.6 billion acquisition of a 75% stake from Dutch firm Akzo Nobel AKZO.AS, JSW Dulux expects integration benefits after the merger to support margins from the second half of fiscal year 2027.

 (Reporting by Urvi Dugar in Bengaluru; Editing by Chandini Monnappa and Ronojoy Mazumdar)

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