JSW Dulux Ltd appeal order annuls ₹9.89 lakh GST penalty

JSW Dulux Ltd has successfully annulled a goods and services tax (GST) penalty of ₹9,89,064 following an appeal order issued by the Joint Commissioner of the LGSTO 38 in Bengaluru. The penalty, originally demanded by the Karnataka GST Department, was related to a discrepancy involving an E-Waybill and an Invoice for the fiscal year 2024-25. This resolution removes the financial liability associated with the demand order issued late last year.

The company had received the initial demand order on December 30, 2024, under Section 129(3) of the SGST Act/Rules, 2017. In response, JSW Dulux Ltd filed an appeal along with necessary supporting documents within the stipulated timeframe. The Joint Commissioner reviewed the submission and issued the appeal order on July 1, 2026, which was received by the company on July 6, 2026, at 10:30 am. The order confirmed that the penalty amount was annulled.

Details of the Litigation

The following table outlines the key details of the proceedings and the final outcome:

Sl. No.	Particulars	Details
1.	Status update	The Company received a demand order from the Karnataka GST Department on December 30, 2024, mentioning a penalty amounting to ₹9,89,064 under Section 129(3) of the SGST Act/Rules, 2017, for the fiscal year 2024-25. The said order was issued due to a discrepancy involving an E-Waybill and an Invoice.
2.	Appeal outcome	The Joint Commissioner of the LGSTO 38 in Bengaluru, Karnataka, reviewed the Company's submission and issued an Appeal Order dated July 1, 2026 (received by the Company on July 6, 2026 at 10:30 am). According to the said Order, the penalty amount got annulled.

The disclosure was made to the stock exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The update was submitted by Rajiv L. Jha, General Counsel & Company Secretary of JSW Dulux Ltd.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.10%	-5.77%	-3.98%	-4.08%	-15.71%	+30.52%

JSW Dulux Limited has released its Annual Report for FY 2025-26, presenting a year of significant transformation underpinned by a change in promoter ownership, a landmark brand acquisition, and resilient operational performance in a highly competitive market. The company has sent letters to shareholders who have not registered their email addresses, providing the weblink and QR code for accessing the Notice of the 72nd Annual General Meeting and the Annual Report. The AGM is scheduled for Friday, 10th July 2026 at 2:00 PM IST through Video Conferencing or Other Audio Visual Means.

Financial Performance Overview

Based on comparable standalone performance of the retained business, the company reported revenue from operations of ₹3,599.2 crores for FY 2025-26, compared to ₹4,069.3 crores in the previous year. The year-on-year decline reflects the slump sale of the Powder Coatings and International Research Centre divisions completed in July 2025. On a comparable basis, the company delivered 7% volume growth and sustained double-digit profitability for the seventh consecutive year. EBITDA stood at ₹507.5 crores and Profit After Tax at ₹1,917.7 crores on a standalone basis.

The following table summarises the standalone and consolidated financial performance:

Metric:	Standalone FY26	Standalone FY25	Consolidated FY26	Consolidated FY25
Revenue from Operations (₹ Crores):	3,599.2	4,069.3	3,599.2	4,069.3
EBITDA (₹ Crores)*:	507.5	641.2	508.5	641.5
Depreciation (₹ Crores):	(75.3)	(89.3)	(75.3)	(89.4)
Other Income net of finance costs (₹ Crores):	21.2	17.8	86.4	17.8
Exceptional Items (₹ Crores):	1,846.3	0.0	1,845.9	0.0
Profit Before Tax (₹ Crores):	2,299.7	569.7	2,365.5	569.9
Profit After Tax (₹ Crores):	1,917.7	428.6	1,973.8	429.5

*before exceptional items. Numbers not comparable due to slump sale of Powder Coatings and International Research Centre divisions during the quarter ended 30 September 2025.

Dividend and Capital Allocation

The Board declared a special interim dividend of ₹156 per equity share in August 2025, funded from proceeds of the slump sale. The Board has further recommended a final dividend of ₹50 per equity share for FY 2025-26, subject to shareholder approval at the 72nd AGM. The total dividend for FY 2025-26, including the proposed final dividend, amounts to ₹206 per equity share — the highest ever declared by the company for a single financial year. The final dividend, if approved, will result in appropriation of ₹227.7 Crores (inclusive of TDS) and will be paid to members on record as of Friday, 3rd July 2026.

Transformative Corporate Developments

FY 2025-26 was marked by several landmark corporate events, including a change in promoter where JSW Paints Limited acquired 61.20% equity via Share Purchase Agreement and Open Offer, with the transaction closing on 10th December 2025. The company acquired intellectual property rights (including Dulux brand) for decorative paints in India, Bhutan, Bangladesh, and Nepal from Akzo Nobel Coatings International B.V. at ₹11,520 million, completed on 1st July 2025. Additionally, the Powder Coatings division was sold for ₹20,730 million and the International Research Centre division for ₹700 million. The company was renamed from Akzo Nobel India Limited to JSW Dulux Limited, effective 11th March 2026, and relocated its corporate office to JSW Centre, Bandra Kurla Complex, effective 1st April 2026.