Q2 2026 Akzo Nobel India Ltd Earnings Call Transcript
Key Points
- Akzo Nobel India Ltd (BOM:500710) reported a 3% volume growth across both Decorative and Coating segments.
- Premium Decorative Paints and Automotive and Specialty Coatings registered mid-single digit growth, indicating strong brand performance.
- The company has a strong order book, particularly in Industrial Coatings, which is expected to drive future growth.
- Significant improvements in working capital management resulted in cash generation of INR 277 crores.
- The company is focusing on digitization and distribution expansion, which is expected to enhance productivity and market reach.
- Overall revenue declined by 1.5% compared to the previous year, impacted by challenges in the mass market and low-margin products.
- Gross margins were affected by raw material inflation and an unfavorable product mix, leading to a decline in gross margin percentage to 41.3%.
- The Decorative segment faced challenges due to weather disruptions and competitive intensity, resulting in marginal growth.
- The Automotive and Specialty Coatings segment, a high-margin business, faced challenges impacting overall profitability.
- The company is undergoing a business reorganization, including the sale of its Powder Coatings business, which may impact short-term financial performance.
Ladies and gentlemen, good day, and welcome to the Q2 and FY26 earnings webinar of AkzoNobel India limited hosted by ICICI Securities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Aniruddha Joshi from ICICI Securities. Thank you, and over to you.
Yes. Thanks, Yashasri. On behalf of ICICI Securities, we welcome you all to Q2 FY26 Results Webinar of AkzoNobel India Limited. We have with us today senior management represented by Mr. Rajiv Rajgopal â Chairman and Managing Director, Mr. Krishna Rallapalli â CFO and Whole-Time Director; Mr. Rohit Totla, Whole Time Director; and Mr. Rajiv Jha â Company Secretary and Compliance Officer.
Now I hand over the call to the management for their initial comments on the quarterly performance, and then we will open the floor for question-and-answer session. Thanks, and over to you, Rajiv, sir.
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