Akzo Nobel India Reports Exceptional Q2 Results with Net Profit Surge to ₹1,682.7 Crore

Akzo Nobel India Limited , a leading paints and coatings company and maker of Dulux Paints, has announced its financial results for the second quarter and first half of the fiscal year 2025-26, revealing a significant surge in net profit driven by exceptional items.

Q2 FY2025-26 Highlights

The company reported a remarkable increase in net profit for Q2 FY2025-26, reaching ₹1,682.7 crore, up from ₹97.9 crore in the same quarter last year. This substantial growth is primarily attributed to exceptional items amounting to ₹1,874.2 crore, which includes profits from the sale of its Powder Coatings business division and International Research Center division.

However, the company faced challenges in its core operations:

Revenue from operations decreased by 15.0% to ₹834.9 crore, compared to ₹982.3 crore in Q2 FY2024-25.
EBIT (Earnings Before Interest and Taxes) from operations declined by 25.7% to ₹92.3 crore, down from ₹124.2 crore in the corresponding quarter of the previous year.

H1 FY2025-26 Performance

For the first half of FY2025-26, Akzo Nobel India reported:

A 9.3% decrease in revenue from operations, totaling ₹1,830.0 crore, compared to ₹2,018.6 crore in H1 FY2024-25.
EBIT from operations fell by 23.1% to ₹208.5 crore, down from ₹271.3 crore in the same period last year.
Net profit, including exceptional items, rose significantly to ₹1,773.7 crore, a 734.5% increase from ₹212.5 crore in H1 FY2024-25.

Performance Excluding Divested Business

Excluding the divested Powder Coatings and IRC businesses, the company's results for Q2 FY2025-26 were as follows:

Metric	Q2 FY2025-26	Q2 FY2024-25	Change
Revenue from operations	₹834.9 crore	₹847.7 crore	-1.5%
EBIT from operations	₹92.3 crore	₹94.5 crore	-2.4%
PAT (including exceptional items)	₹1,682.7 crore	₹75.8 crore	+2119.8%

Management Commentary

Rajiv Rajgopal, Chairman and Managing Director of Akzo Nobel India Limited, commented on the results: "In Q2 FY2025-26, volume growth partially countered the impact of weather disruptions and competitive pressure on our topline. B2B vertical growth was led by industrial coatings and demand across mining, power and automotive sectors. Although retail remained under pressure, premium product portfolio witnessed a renewed uptick in demand."

He added, "Margins were constricted by vertical mix dynamics; however, disciplined operational cost control safeguarded our profitability. Navigating a challenging operating environment in H1 FY2025-26, the Company sustained its double-digit profitability while investing in brand, innovations and growth initiatives."

Recent Highlights

The company celebrated five years of Dulux Assurance with the 'Lage Shaandaar, Chale Shaandaar' campaign.
In decorative paints, Akzo Nobel India launched two flagship mass-market brand renovations:
- Dulux Promise range of interior and exterior emulsions was upgraded with Colour Lock technology and superior wipe-ability for interiors.
- Dulux Weathershield Projects was re-introduced at a more competitive price point in the entry-level exterior emulsion segment.
The company expanded its Interdur range of anti-corrosive protective coatings with the launch of Interdur 1133 and Interdur 1135.

Despite facing challenges in its core operations, Akzo Nobel India's exceptional items have significantly boosted its financial performance for the quarter and half-year. The company continues to focus on innovation and brand initiatives while navigating a competitive market environment.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-12.70%	-10.03%	-4.94%	-1.96%	-8.77%	+39.88%

AkzoNobel India Limited has filed a regulatory disclosure under SEBI Insider Trading Regulations following the completion of a major share transaction. The company submitted the disclosure on December 12, 2025, pursuant to Regulation 7(2) of SEBI (Prohibition of Insider Trading) Regulations, 2015, regarding the sale of 16,603,504 equity shares by Imperial Chemical Industries Limited to JSW Paints Limited.

Major Transaction Details

The transaction represents the largest single share transfer in the ongoing consolidation process, with Imperial Chemical Industries completely exiting its promoter status:

Parameter:	Details
Seller:	Imperial Chemical Industries Limited
Buyer:	JSW Paints Limited
Shares Sold:	16,603,504 equity shares
Percentage:	36.46% of paid-up equity capital
Transaction Mode:	Off-market transaction
Transaction Date:	December 10, 2025

Financial Transaction Structure

The deal involves a comprehensive payment structure with both upfront and deferred components:

Payment Component:	Amount (₹)
Total Consideration:	458,607.48 lakhs
Upfront Payment:	436,406.49 lakhs
Deferred Payment:	22,200.98 lakhs

Shareholding Transformation

The transaction has resulted in a dramatic reduction in Imperial Chemical Industries' stake, with the company retaining only a minority holding:

Shareholding Status:	Before Transaction	After Transaction
Shares Held:	20,700,529 (45.46%)	4,097,025 (9.00%)
Voting Rights:	45.46%	9.00%
Promoter Status:	Former Promoter	Declassified

Regulatory Compliance and Documentation

The company has fulfilled all regulatory requirements under SEBI guidelines. The disclosure was submitted to both BSE Limited and National Stock Exchange of India Limited, confirming compliance with insider trading regulations. Imperial Chemical Industries has been declassified as a promoter following the transaction closure on December 10, 2025, pursuant to Regulation 31A of SEBI Listing Regulations.

Strategic Industry Impact

This transaction marks another significant milestone in JSW Paints' comprehensive acquisition of AkzoNobel India operations. The disclosure confirms that Imperial Chemical Industries will continue as a public shareholder with its reduced 9.00% stake, while JSW Paints strengthens its position in the Indian paints sector through these strategic acquisitions. This consolidation represents a major restructuring in the domestic paints industry landscape.