Akzo Nobel India Ltd

Resolutions proposed via postal ballot

• Item 1: Ordinary sub-division of share value; no dilution; outcome not disclosed.
• Item 2: Ordinary MOA Capital Clause alteration; no explicit impact stated; outcome not disclosed.
• Item 3: Special AoA alteration; enables sub-division and related governance updates; outcome not disclosed.

GST dispute with Odisha Dept

• Show Cause Notice under CGST Act received from Odisha GST Dept on 18 Aug 2026.
• Disallowance of Input Tax Credit for Apr 2022–Mar 2023 amounting to Rs 1,84,27,593.
• Breakdown: Tax Rs 1,08,23,675; Interest Rs 64,79,972; Penalty Rs 11,23,946.
• Total liability under the notice is Rs 1,84,27,593.
• Company to respond within the stipulated time; further submissions to authorities.

Financial Performance

• Revenue 965 crores in Q1 FY27; like-for-like 812 crores, up 18.8%.
• Gross margin 360.8 crores vs 353.6 crores prior year; ~2% growth.
• PAT 135.5 crores vs 67.2 crores prior year; two one-offs noted.
• Two exceptional items: interest on IT fund 21.5 crores; dividend income from ICI RT 55.9 crores.
• Volume growth 25%; price-adjusted volume ~18%.

Operations & Segments

• Decorative grew in double digits; industrial coatings growth >25%; premium growth leading.
• Underlying gross margin ~39.5%–40% after adjustments; gross margin impact from lower decorative inventory ~2 pts.
• Painter reclassification moved to gross revenue; ~2.5 pts impact.
• Inventory: blended ~95 days; decorative ~60 days; industrial ~100+ days inventory cover.
• Headcount added ~160 across India to fund growth; costed in near term.

Balance Sheet & Cash Flow

• Dividend income from ICI RT: 55.9 crores (property sale monetization).
• Interest on IT fund: 21.5 crores included in PAT as exceptional item.
• Tax refund: 108 crores (AY 2013-14) including 21.5 crores interest.
• Savings realized from Project Akshaya initiatives: ~2.4 crores.

Projects & Integration

• Project Akshaya: integrating JSW Dulux with JSW Paints; cross-manufacturing in Gwalior and Mohali.
• Supply-chain redesign and ERP migration planned by year-end; unified projects function.
• 3-layer governance to fund growth initiatives; robust controls against related party concerns.

Outlook & Guidance

• EBITDA margin guidance for FY27: 13% to 15%, given crude prices.
• Long-term vision: aims to be number two in decorative and number one in industrial by 2030-2031.

Q&A Highlights

• Execution focus: micro-market strategy in high-share states; premium and adjacencies prioritized.
• Painter program digitalization using lifecycle management to reduce wastage; top towns targeted for direct/hybrid model.
• Competitiveness remains intense in decorative; emphasis on brand and sell-out to sustain growth.
• Discounting: the company does not match rivals; distributor margins included in rebates.
• Management aims for double-digit volume growth in the quarter and beyond; July saw slower seasonality due to monsoon.

Litigation update

• CESTAT final order dated 31 July 2026 set aside order and annulled Rs 32.41 lakh excise demand.
• No further liability arising from the adjudication demand.
• Original proposal was Rs 1.59 crore; reduced to Rs 32.41 lakh before appeal.
• Final order received by the company on 17 August 2026.

Resigning director details

• Resigning: Krishna Rallapalli, Wholetime Director and Chief Financial Officer.
• Type: Executive Director.
• Effective date: last working day on or before 14 October 2026.
• Reason: personal and professional reasons.
• No other material reasons beyond those stated.
• Roles vacated: Wholetime Director and CFO; KMP.

Meeting Details

• Date: 12 August 2026; Time: 15:00 hrs; type: group investor call.
• Mode: virtual/teleconference.
• Event/organiser: Group Investor Call.

Participants

• Key participants: Senior management from JSW Dulux.

Purpose

• Purpose: discuss Q1 FY2026 results and address investor queries.

Additional Notes

• Audio recording available on company website.
• Transcript will be shared with stock exchanges and posted on website.
• Presentation was shared with exchanges and uploaded prior to the call.

Website domain update

• Company announces new website domain www.jswdulux.com, with old domain akzonobel.co.in redirecting automatically.