Company Overview

JSW Dulux Limited (formerly Akzo Nobel India Limited) reported transformative FY26 results following its acquisition by JSW Paints Limited, which acquired a 61.2% controlling stake in December 2025. The company completed its rebranding to JSW Dulux Limited effective 11th March 2026, marking a significant shift in ownership and strategic direction.

Financial Performance Highlights

Standalone Financials (₹ Crores)

  • Revenue from Operations: ₹35,992 million (FY25: ₹40,693 million) - decrease of 11.6%
  • Operating Profit (EBITDA): ₹507.5 million before exceptional items (FY25: ₹641.2 million)
  • Exceptional Items: ₹18,463 million gain from business transfers and IP acquisition
  • Profit Before Tax: ₹22,997 million (FY25: ₹5,697 million) - increase of 303.7%
  • Profit After Tax: ₹19,177 million (FY25: ₹4,286 million) - increase of 347.4%
  • Earnings per Share: ₹421.10 (FY25: ₹94.11)

Key Financial Ratios

  • Operating Profit Margin: 14.1% (FY25: 15.8%)
  • Net Profit Margin: 53.3% (FY25: 10.5%)
  • Return on Net Worth: 103.0% (FY25: 32.3%)
  • Debt Equity Ratio: 0.03 (FY25: 0.05)
  • Current Ratio: 1.5 (FY25: 1.4)

Significant Corporate Actions

Business Restructuring

  • Completed slump sale of Powder Coatings Business and International Research Center divisions to Akzo Nobel subsidiary for ₹21,922 million, resulting in pre-tax gain of ₹18,925 million
  • Acquired intellectual property rights for decorative paints business from Akzo Nobel Coatings International B.V. for ₹11,520 million, capitalized as intangible assets
  • Converted ICI India Research and Technology Centre Private Limited from Section 8 Company to Private Limited Company, making it 99.99% subsidiary

Ownership Change

  • JSW Paints Limited acquired 60.76% equity share capital from Imperial Chemical Industries Limited and Akzo Nobel Coatings International B.V. on 10th December 2025
  • Erstwhile promoters sold remaining 13.56% to public on stock exchanges
  • New promoter holding stands at 61.20% with public holding at 38.80%

Dividend Declaration

  • Special Interim Dividend: ₹156 per equity share (₹7,104 million) paid during the year
  • Final Dividend for FY25: ₹30 per equity share (₹1,366 million) paid during the year
  • Proposed Final Dividend for FY26: ₹50 per equity share (₹2,277 million) subject to shareholder approval
  • Total FY26 Dividend: ₹206 per equity share (highest ever)
  • Total Dividend Appropriation: ₹227.7 Crores (inclusive of TDS)

Operational Performance

Business Divisions

Decorative Paints: Achieved 7% volume growth despite competitive pressures, with focus on premium segments and project business. Expanded distribution network to 22,000+ paint retailers covering 5,000+ towns, with 16,000+ tinting machines installed. Launched new products including Dulux Velvet Touch Eterna matte.

Industrial Paints: Maintained strong position in Automotive, Marine, and Protective Coatings, securing 150+ new bodyshop wins and receiving exclusive Porsche network approval. Waterborne coatings adoption increased to 57%.

Manufacturing and Workforce

  • Employee Strength: 1,387 employees
  • Manufacturing Facilities: 5 state-of-the-art plants
  • R&D Centre: 1 center

Risk Management Framework

Credit Risk

  • Maximum credit exposure primarily from trade receivables of ₹6,029 million
  • Impairment provision of ₹168 million with detailed aging analysis showing increasing expected loss rates for overdue receivables

Liquidity Risk

  • Undrawn borrowing facilities of ₹953 million in bank overdraft facilities
  • Lease liabilities maturity of ₹1,336 million total
  • Strong cash position with ₹2,031 million cash equivalents

Market Risk - Foreign Exchange

  • Net exposure to currency risk: USD 314 million assets, USD 91 million liabilities
  • 10% movement in USD would impact profit after tax by ₹17 million
  • All material foreign currency exposures hedged through forward contracts

Related Party Transactions

Significant transactions with related parties included:

  • Royalty payment: ₹587 million to Akzo Nobel entities
  • Dividend payment: ₹6,332 million to previous promoters
  • Services received: ₹288 million from Akzo Nobel entities
  • Sale of business divisions: ₹21,922 million to Akzo Nobel subsidiary
  • Purchase of IPR: ₹11,520 million from Akzo Nobel Coatings International B.V.

Corporate Governance and Compliance

Board Changes

  • Mr. Parth Jindal appointed as Non-Executive Chairman effective 9th January 2026
  • Mr. Rajiv Rajgopal redesignated as Joint Managing Director & CEO from Chairman and MD
  • New independent directors appointed: Mr. Shantanu Maharaj Khosla and Ms. Sutapa Banerjee

Forward-looking Statements and Risks

The document contains forward-looking statements based on current expectations, with actual results subject to risks including raw material price fluctuations, competitive pressures, regulatory changes, and economic conditions. Identified risk factors include credit risk from trade receivables, foreign exchange exposure, and tax litigation risks with contingent liability of ₹470 million.