Akzo Nobel India Ltd

JSW Dulux Ltd trading window closed from 1st October 2026 till the conclusion of 48 hours after the declaration of Unaudited Financial Results of the Company for the quarter ended 30th September 2026

Stock split and record date

• Record date: 22 October 2026 for 1-for-10 stock split (Rs 10 to Rs 1).
• Approved by shareholders via postal ballot on 20 September 2026.
• Security: Equity shares, fully paid-up.

Purpose

• Three postal ballot resolutions proposed: share split, MOA capital clause alteration, AoA capital clause alteration.
• Close of postal ballot on 20/09/2026; results announced with majority.

Resolutions and outcomes

• Resolution 1 (Ordinary): Face-value subdivision approved; 39,070,798 of 39,071,143 votes in favor.
• Resolution 2 (Ordinary): Alter MOA capital clause approved; 39,070,753 in favor.
• Resolution 3 (Special): Alter AoA capital clause approved; 39,070,603 in favor.

Postal ballot resolutions

• Purpose: seek approval for share split and capital clause alterations.
• Resolution 1 (Ordinary): Sub-division of face value of equity shares; results awaiting Scrutinizer report.
• Resolution 2 (Ordinary): Alteration of Capital Clause of MOA; results awaiting Scrutinizer report.
• Resolution 3 (Special): Alteration of Capital Clause of AoA; results awaiting Scrutinizer report.
• Status: e-voting concluded; results to be announced after Scrutinizer report.

Meeting Details

• Date and time: Friday, 18 September 2026, 9:00 am
• Type and mode: Physical meeting, 1X1 and group
• Event: Jefferies 5th India Forum
• Venue: The Oberoi, Gurgaon
• Purpose: Analyst/institutional investor meet
• Key company participants: General Counsel & Company Secretary

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.