NewKerala.com

Key Points

Akzo Nobel India's Q1 net profit fell 20% to Rs 91 crore, impacted by sluggish retail demand. Revenue dipped 4% to Rs 1,004 crore amid margin pressures. The company announced a special dividend of Rs 156 per share to shareholders. Despite challenges, B2B growth helped sustain profitability, as shares rose 2.4% on results day.

Key Points: Akzo Nobel India Q1 Profit Falls 20% to Rs 91 Crore Amid Revenue Dip

  • Q1 net profit drops 20% YoY to Rs 91 crore
  • Revenue declines 4% to Rs 1,004 crore
  • Special interim dividend of Rs 156 per share declared
  • B2B growth offsets weak retail demand
2 min read

Akzo Nobel India net profit falls 20 pc to 91 crore in Q1; revenue down 4 pc

Akzo Nobel India reports a 20% drop in Q1 net profit to Rs 91 crore, with revenue declining 4% due to weak retail demand and competition.

"Despite margin pressure, we sustained double-digit profitability and maintained investments in growth initiatives – Rajiv Rajgopal, Akzo Nobel India CMD"

Mumbai, Aug 4

Akzo Nobel India Limited reported a decline in net profit and revenue for the first quarter of the financial year 2025-26 (Q1 FY26), according to an exchange filing on Monday.

The company's net profit fell to Rs 91 crore during the April-June quarter, falling 20 per cent from Rs 114.6 crore reported in the corresponding quarter a year ago (Q1 FY25).

On a sequential basis, profit also declined from Rs 107.5 crore in the previous quarter (Q4 FY25), signalling continued margin pressure.

Total income for the quarter stood at Rs 1,004.1 crore, compared to Rs 1,046.9 crore in Q1 FY25 (a decline of nearly 4 per cent), and Rs 1,024.9 crore in the preceding quarter.

Meanwhile, the operating costs of the company remained relatively stable.

The total expenses in Q1 FY26 came in at Rs 881.6 crore, slightly down from Rs 891.17 crore a year ago and Rs 887.5 crore in the preceding quarter.

The paint and coating manufacturers declared a one-time Special Interim Dividend of Rs 156 per equity share for the FY26 out of the retained earnings of the Company as on June 30, according to the filing.

The special interim dividend shall be paid within 30 days from the announcement, and the record date has been fixed on August 11, as per the filing.

“In Q1 of FY2025-26, our B2B business continued its growth trajectory, while retail was subdued due to tepid consumer demand and heightened competition. Despite margin pressure, we sustained double-digit profitability and maintained investments in growth initiatives,” said Akzo Nobel India Limited Chairman and Managing Director, Rajiv Rajgopal.

Akzo Nobel India is a key player in the Indian paints and coatings market.

Meanwhile, the shares of the company traded higher on Monday amid a rally in the market. The stock closed at Rs 3,724.0, up 2.42 per cent.

- IANS

Share this article:

Reader Comments

P
Priya S
Special dividend of ₹156 per share is impressive! 🎉 But I wonder if they should have reinvested that money given the profit decline. Maybe trying to keep shareholders happy during tough times?
A
Arjun K
The paint industry is getting too competitive with Asian Paints, Berger, and now Grasim entering. Akzo Nobel needs to focus more on premium products where they have an edge. Their industrial coatings business seems promising though.
S
Sarah B
Interesting that stock price went up despite poor results. Shows market was expecting worse! The special dividend must have boosted investor sentiment. But long-term, they need to address retail segment challenges.
V
Vikram M
As a small investor, I'm concerned about the consistent decline quarter after quarter. Management needs to be more transparent about their turnaround strategy. Just blaming "tepid demand" isn't enough - what are they doing differently?
K
Kavya N
The monsoon season always affects paint sales in India. Maybe next quarter will be better when people start painting homes before Diwali 🪔 Still, 20% profit drop is significant. Hope they have good festive season offers!

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50