Akzo Nobel India Q1 net profit falls 20.5% to ₹91 crore

Paints and coatings maker Akzo Nobel India Ltd on Monday reported a 20.6% decline in consolidated net profit to ₹91 crore in the June quarter, impacted by lower sales amid tepid consumer demand. It had posted a consolidated net profit of ₹114.6 crore in the corresponding period last fiscal, Akzo Nobel India said in a regulatory filing. Consolidated revenue from operations in the quarter under review stood at ₹995.1 crore as compared to ₹1,036.3 crore in the year-ago period, it added. Total expenses in the April-June quarter were marginally lower at ₹881.6 crore against ₹891.7 crore in the same period a year ago, the company said.

The company, in which JSW Paints had agreed to buy a 74.76% stake for ₹8,986 crore last month, followed by an open offer to buy another 25% from the open market for up to ₹3,929.06 crore, said its board has approved a one-time special interim dividend of ₹156 per share.

Akzo Nobel India Chairman and Managing Director Rajiv Rajgopal said, "In Q1 of FY2025-26, our B2B segment continued its growth trajectory, while retail was subdued due to tepid consumer demand and heightened competition. Despite margin pressure, we sustained double-digit profitability and maintained investments in growth initiatives."

On the special interim dividend, he said, "Expressing gratitude to all our shareholders, the board is delighted to announce a one-time special interim dividend of ₹156 per share, inter alia, based on income on slump sale as previously approved by shareholders."

Shares of the company were trading 2.06% higher at ₹3,712 apiece on the BSE.