Akzo Nobel India Q2 FY26 Concall Decoded – “Paint Prices Down, Premium Up, And JSW Has Entered the Chat”

1. Opening Hook

Just when the paint industry thought the storm had passed, Akzo Nobel India walked in with a plot twist—volume revival,premium up,price cuts, andJSW’s shadow looming large. Yes, the same JSW known for swinging bats, building steel, and now apparently teaching paint companies how to play T20 instead of Test cricket.

Akzo’s quarter looks boring at first glance—until you notice they grew premium paints despite a cyclone of discounting, slashed prices strategically like a surgeon, and delivered volumes that finally stopped being shy.

Grab a seat. The real masala starts withslump sales, royalty exits, pricing wars, and an industry that’s suddenly acting like telecom circa 2010. Read on—this gets spicy.

2. At a Glance

• Revenue down 1.5% YoY– Slump sale removed a whole business, so numbers look like they hit diet mode.
• Volume +3%– Finally, something went up besides raw material bills.
• Premium decorative up mid-single digit– Rich people still painting houses, confirmed.
• Gross Margin 41.3%– Hurt by coatings mix, saved by retail mix.
• EBIT Margin stable at 11.1%– CFO protecting margins like it’s Fort Knox.
• Cash generation ₹277 Cr– Working capital dieting delivers.
• Price cuts of 1.5–2%– Akzo’s “aggressive mode ON” button clicked post-JSW entry.
• Decorative revenue marginally up, overall revenue down– Mass segment underperformed—apparently mass consumers skipped the “buy paint” memo.

3. Management’s Key Commentary (Quotes + Sarcastic Translations)

Quote:“Volume has come back with 3% growth across Decorative and Coatings.”(Translation: Finally, we can say the word ‘growth’ without sweating.)

Quote:“Premium grew mid-single digit.”(Translation: People who can afford Velvet Touch still don’t check prices.)

Quote:“Mass market declined due to strategic choices.”(Translation: We backed off in economy paints because everyone was throwing discounts like DU fest flyers.)

Quote:“Coatings grew but mix hurt margins.”(Translation: Low-margin B2B gave high-margin coatings a solid slap.)

Quote:“Marine had a huge base last year; order book still phenomenal.”(Translation: Last year we painted ships; this year we are waiting for ships.)

Quote:“Price corrections of 1.5–2% taken scientifically after conjoint analysis.”(Translation: Not random cutting—Excel was involved. 😏)

Quote:“JSW told us—go after revenue and growth aggressively.”(Translation: Test match era over; T20 slog-overs have begun.)

Quote:“EBITDA margin guidance 14–16% sustainable.”(Translation: Don’t expect Asian Paints-level margins; we’re still learning yoga.)

Quote:“Royalty for Decorative ceased from July 1.”(Translation: Finally stopped paying rent for using our own brand.)

4. Numbers Decoded

Metric                          Q2 FY26               Change / Notes
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Revenue                         ₹834.9 Cr             -1.5% YoY (post slump-sale adjusted)
Volume Growth                  +3%                    First positive