Why Did Akzo Nobel India's Net Profit Drop by 20% in Q1?
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Synopsis
Akzo Nobel India Limited has reported a significant decline in net profits and revenues for Q1 FY26. With a 20% drop in net profits and a slight decrease in total income, the company faces ongoing challenges amidst market pressure. Despite this, they continue to invest in growth opportunities, highlighting resilience in their B2B sector.
Key Takeaways
- Net profit fell by 20% to Rs 91 crore in Q1 FY26.
- Revenue decreased by nearly **4%** compared to Q1 FY25.
- Operating costs remained stable, with total expenses at Rs 881.6 crore.
- Special Interim Dividend of **Rs 156** per share announced.
- Company shares rose **2.42%** during market rally.
Mumbai, Aug 4 (NationPress) Akzo Nobel India Limited has announced a decrease in both net profit and revenue for the first quarter of the fiscal year 2025-26 (Q1 FY26), based on an exchange notification released on Monday.
The company's net profit decreased to Rs 91 crore during the April-June period, representing a 20% drop from Rs 114.6 crore for the same quarter last year (Q1 FY25).
Sequentially, profits also fell from Rs 107.5 crore recorded in the previous quarter (Q4 FY25), indicating ongoing margin pressures.
Total income for this quarter was Rs 1,004.1 crore, down from Rs 1,046.9 crore in Q1 FY25 (a nearly 4% decline) and Rs 1,024.9 crore in the preceding quarter.
In terms of operating expenses, the company showed relative stability.
Total expenses in Q1 FY26 were reported at Rs 881.6 crore, slightly less than Rs 891.17 crore a year prior and Rs 887.5 crore from the previous quarter.
The paint and coating manufacturer announced a one-time Special Interim Dividend of Rs 156 per equity share for FY26, sourced from the retained earnings as of June 30, according to the filing.
This special interim dividend is set to be distributed within 30 days of announcement, with the record date established on August 11, as per the filing.
“In Q1 of FY2025-26, our B2B sector continued to grow, while retail faced challenges due to weak consumer demand and increased competition. Despite margin pressures, we maintained double-digit profitability and continued investing in growth,” stated Akzo Nobel India Limited Chairman and Managing Director, Rajiv Rajgopal.
Akzo Nobel India is a significant player in the Indian paints and coatings market.
Additionally, the company's shares saw an uptick on Monday amidst a market rally, closing at Rs 3,724.0, which is a 2.42% increase.
Point of View
Akzo Nobel India's financial report reflects broader trends in the industry, where companies are grappling with fluctuating demand and competitive pressures. While challenges persist, their commitment to maintaining profitability and investing in growth initiatives showcases a proactive approach to navigating market dynamics. Staying attuned to such developments is essential for stakeholders and investors alike.
NationPress
30/08/2025
Frequently Asked Questions
What caused the decline in Akzo Nobel India's net profit?
The decline in net profit is attributed to weak consumer demand within the retail sector and heightened competition.
What is the amount of the interim dividend announced?
Akzo Nobel India declared a one-time Special Interim Dividend of Rs 156 per equity share for FY26.
How does the company's revenue compare to the previous quarter?
Total income for Q1 FY26 was Rs 1,004.1 crore, a decline from Rs 1,024.9 crore in the previous quarter.
What measures is Akzo Nobel taking to combat margin pressure?
Despite margin pressures, Akzo Nobel continues to invest in growth initiatives and maintain profitability.
How did the shares of Akzo Nobel perform recently?
The shares of Akzo Nobel India increased by 2.42%, closing at Rs 3,724.0 amid a market rally.
