Image Source: The Economic Times
Akzo Nobel India Ltd. has reported a robust financial performance for the quarter ended June 2025, underscoring its operational strength and shareholder-centric approach. The company also declared a special interim dividend of ₹156 per share, marking one of the highest payouts in recent years.
Key Financial Highlights
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Consolidated revenue from operations stood at ₹9.95 billion, reflecting strong demand across decorative and industrial coatings.
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Net profit surged to ₹910 million, driven by improved product mix and cost efficiencies.
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EBITDA margins expanded to 18.7%, supported by lower raw material costs and optimized logistics.
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Earnings per share (EPS) rose to ₹20.02, up from ₹17.45 in the previous quarter.
Dividend Bonanza: ₹156 Per Share
Akzo Nobel India’s board approved a special interim dividend of ₹156 per share, translating to a yield of over 4% based on current market price. This payout is part of the company’s capital restructuring strategy following the promoter group’s planned exit and JSW Paints’ acquisition offer.
Dividend Snapshot:
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Type: Special Interim
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Amount: ₹156 per share
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Record Date: August 8, 2025
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Ex-Date: August 7, 2025
This move is seen as a reward to long-term shareholders and a signal of confidence in the company’s cash reserves and future earnings visibility.
Strategic Developments & Corporate Actions
Akzo Nobel India is undergoing a significant transformation:
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JSW Paints Acquisition: JSW Paints has launched an open offer to acquire up to 25.24% of Akzo Nobel India’s equity, following its agreement to buy a 74.76% stake from the Dutch parent.
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Exit of Dutch Promoters: AkzoNobel NV is exiting the Indian market, citing strategic realignment and competitive pressures.
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Operational Continuity: Despite ownership changes, Akzo Nobel India will retain its brand portfolio including Dulux, Sikkens, and Interpon.
Segmental Performance
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Decorative Paints: Continued to lead revenue growth, supported by festive demand and rural expansion.
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Industrial Coatings: Margins improved due to higher realizations and stable input costs.
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Exports: Grew 12% year-on-year, with strong traction in Southeast Asia and Middle East markets.
Market Reaction & Investor Sentiment
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The stock rallied 3.2% post-results, touching ₹3,820 intraday before settling at ₹3,786.
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Analysts remain bullish, citing strong fundamentals, high dividend yield, and potential upside from JSW’s strategic backing.
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Institutional interest has surged, with mutual funds and FIIs increasing their holdings in anticipation of post-acquisition synergies.
Investment Outlook
Akzo Nobel India presents a compelling investment case amid its transition. The special dividend enhances shareholder value, while the JSW Paints acquisition could unlock new growth avenues. With a strong brand portfolio, lean balance sheet, and expanding margins, the company is well-positioned for long-term value creation. Investors may consider accumulating the stock, especially ahead of the record date, to benefit from the dividend and potential re-rating.
Source: Akzo Nobel India Financial Results & Dividend Announcement – The Economic Times
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