Akzo Nobel India Limited has successfully resolved a GST litigation matter, with the Chhattisgarh GST Department's Appeal Order completely nullifying the original tax demand. The company received the favorable Appeal Order on February 16, 2026, marking the conclusion of proceedings that began in April 2024.

Original GST Demand Details

The litigation originated from an order received by the company on April 30, 2024, from the Chhattisgarh GST Department. The order covered periods 2018-19 and 2020-21, involving disallowance of input tax credit under Section 73 of the CGST/SGST Act, 2017.

Appeal Process and Resolution

In response to the original demand, Akzo Nobel India filed an appeal along with comprehensive supporting documents within the specified timeframe. The company's proactive approach in contesting the demand proved successful.

The Superintendent (Appeals) of the Raipur, Chhattisgarh GST Department conducted a thorough review of the company's response and supporting documentation. Following this review, the department issued an Appeal Order dated January 29, 2026, which the company received on February 16, 2026 at 11:00 am.

Favorable Outcome

The Appeal Order delivered a completely favorable outcome for the company:

The ruling sets the demand amount to zero, effectively annulling the original Demand Order in its entirety. This resolution eliminates any financial liability that was initially claimed by the GST department.

Regulatory Compliance

The company has disclosed this development in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI circular SEBI/HO/CFD/CFDPoD-1/P/CIR/2023/123 dated July 13, 2023. This update follows the company's earlier disclosure of the pending litigation made on May 1, 2024.

The successful resolution of this GST matter demonstrates the company's effective legal strategy and compliance management, concluding the litigation without any financial impact on its operations.

Akzo Nobel India Limited has announced its Q3FY26 financial results, revealing a challenging quarter marked by competitive pressures and strategic corporate changes. The company reported revenue of ₹907.7 crore for the quarter ended December 31, 2025, representing a decline of 1% compared to the previous year. Following the results announcement, the company conducted its earnings conference call on February 3, 2026, providing detailed insights into performance and future strategy.

Financial Performance Overview

The company's financial metrics for Q3FY26 demonstrate resilience despite topline pressures. While overall revenue declined, domestic volumes showed positive momentum with a growth of 6.6%, leading to domestic revenue growth of 1.8%.

The company maintained its EBITDA margin at 14.9%, demonstrating operational efficiency despite market challenges. Profit after tax, excluding exceptional items, improved by 6% to ₹94.6 crore.

Regulatory Filing Confirms Financial Results

The company has filed its official financial results with stock exchanges under Regulation 30 of SEBI regulations. The regulatory filing confirms total income from operations of ₹922.38 crore for Q3FY26, with detailed financial metrics submitted to BSE and NSE.

The filing indicates exceptional items of ₹278.64 million for the quarter, while the nine-month period included significant exceptional income of ₹18,463.34 million related to business divestments.

Corporate Restructuring and Leadership Changes

Significant corporate developments marked the quarter with JSW Paints completing its acquisition to become the promoter and holding company. JSW Paints now holds 61.2% of the paid-up equity share capital, having acquired 60.76% shareholding in the company.

The leadership restructuring includes several key appointments subject to shareholder approval:

The Board has also approved a proposed name change to "JSW Dulux Limited," pending shareholder approval.

Management Commentary from Earnings Call

During the February 3, 2026 earnings conference call, Joint Managing Director and CEO Rajiv Rajgopal provided strategic insights into the company's performance and future direction. He highlighted that the standalone domestic business grew approximately 2%, with decorative volumes showing strong growth of 8%.

Rajgopal emphasized the company's strategic repositioning under JSW ownership, stating the clear intent to move from the fourth-largest player to the top three and subsequently the top two positions in India's paint market.

Business Segment Performance

Decorative Paints Division

The decorative paints vertical faced mixed demand conditions amid competitive pressure. Premium segment products grew 4%, supported by new launches in the exteriors category. The waterproofing segment achieved notable growth of 17%, while retail operations expanded across geographies.

Coatings Verticals

The coatings business showed varied performance across segments:

• Marine & Protective Coatings: Growth recorded in Power, Oil & Gas, and Mining businesses within the Protective segment, with recovery in the Marine docking business
• Automotive & Specialty Coatings: Premium segment growth driven by Bodyshop wins and improved product mix, with strong performance in Auto OEM segment
• Industrial Coatings: Strong order intake in Coil and ACP businesses supported by conducive demand conditions

Strategic Outlook and Growth Initiatives

The management outlined several key strategic initiatives during the earnings call. The company is redeploying royalty savings of approximately 60-65 crore toward growth initiatives and market share gains. CFO Krishna R confirmed that the company maintains free cash of approximately 200-225 crore earmarked for growth initiatives and CAPEX.

The company launched several new products during the quarter, strengthening its market position. Dulux Weathershield Metallics was introduced with over 80 metallic shades backed by a 10-year warranty. The company also expanded into flooring applications with Dulux Weathershield Floor Plus, offering over 800 color options with a 2-year warranty.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company reported revenue of ₹2,737.7 crore, down 2% from the previous year. EBITDA for the period stood at ₹380.7 crore with a margin of 13.9%. The period included exceptional items of ₹1,874 crore related to the sale of Powder and International Research Centre business.

Chairman Parth Jindal emphasized the company's strategic positioning, with management maintaining commitment to shareholder value creation while embedding ESG principles in operational practices and pursuing sustainability ambitions. The company continues to focus on driving market share gains across all business segments while establishing Dulux as a best-in-class brand in the Indian market.