Akzo Nobel Q3 profit down 32% YoY on exceptional loss, EBITDA slips 18%
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Akzo Nobel India on Tuesday reported a 31.58% year-on-year dip in its consolidated net profit (attributable to owners of the company) at ₹74.3 crore for the quarter ended December 31, 2025. The paint manufacturer had reported a net profit of ₹108.6 crore during Q3 FY25.
The company's revenue saw a 13.6% YoY dip to ₹908 crore during Q3 FY26, as against ₹1,051 crore reported during Q3 FY25. During the quarter under review, the company's EBITDA saw an 18.1% YoY fall at ₹136.50 crore, as against ₹166.60 crore reported during the year-ago quarter.
Exceptional hits and JSW integration
The decline in profitability was primarily fuelled by exceptional items totalling a net loss of ₹28.3 crore. A portion of this was attributed to the statutory impact of the newly notified labour codes, covering social security and wage obligations. This was partially offset by minor gains from divestment activities.
On December 10, 2025, JSW Paints Limited officially became the promoter and holding company after acquiring a 61.2% stake. Following this change in guard, the board has approved a proposal to rename the company to “JSW Dulux Limited,” pending shareholder and regulatory approvals.
Volume growth
Despite the headline revenue drop, the company managed an overall volume growth of 5.9%. In the domestic decorative paints segment, volumes grew by 8%, largely driven by the premium portfolio. However, aggressive competitive pricing and rising input costs led to a contraction in margins. The EBITDA margin stood at 15.02%, down 87 basis points from 15.89% in the corresponding quarter last year.
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Leadership transition
The transition to the JSW Group brought immediate changes to the boardroom. Parth Jindal has been appointed as the new non-executive chairman. Meanwhile, Rajiv Rajgopal has been re-designated as joint managing director and CEO.
"We are focused on accelerating growth by leveraging JSW’s scale and execution capabilities," said Rajgopal. The company plans to reinvest operational savings into brand building and digital tools to counter the entry of new, well-capitalised players in the Indian paint market.
For the nine months ended December 31, 2025, the company reported a total net profit of ₹18,478 crore, though this figure is heavily skewed by a one-time exceptional gain of ₹1,846.3 crore from the divestment of its Powder Coatings and IRC divisions earlier in the year.
The shares of Akzo Nobel ended 1.34% higher at ₹2,857 apiece on the national stock exchange on Tuesday. The company's shares have fallen over 25% in the past one year, underperforming the benchmark Nifty 50 index that has risen nearly 10% during the same period.