Chemical inventory in focus after reporting 1,618% development in internet earnings in Q2

Synopsis: Akzo Nobel India Ltd., a small-cap participant within the chemical sector, surprised the market with a 1,618% year-on-year surge in internet revenue for Q2FY26, pushed by a one-time distinctive acquire. Regardless of this report determine, the inventory worth remained flat, elevating questions on investor sentiment and the sustainability of such earnings. 

This text explores the disconnect between monetary efficiency and market response, analyzing whether or not the muted response indicators warning or a hidden alternative for long-term buyers.

Akzo Noble with a market capitalization of Rs.14,709.52, buying and selling at Rs.3,257.5 opened flat at Rs.3,230 from its earlier day shut of Rs.3,218 and made a day low of Rs.3,158.35. It has delivered a return of 51.54% within the final 3 years.

QoQ view

The income of the corporate declined 16% from Rs.995 crore in Q1FY26 to Rs. 835 crore in Q2FY26. Working revenue declined by 17.17% from Rs.134 crore in Q1FY26 to Rs. 111crore in Q2FY26. Internet Revenue elevated from Rs.91crore in Q1FY26 to Rs.1,683 in Q2FY26, nevertheless it contains an distinctive merchandise price Rs.1,874 crore.

YoY view

The income of the corporate declined by 14.96% YoY in Q2 FY26 from Rs.982 crore to Rs.835 crore, accompanied by a rise in PAT from Rs. 98 Crore to Rs. 1,683 Crore. With a quantity development of three% & decline of 24% within the working revenue from Rs.146 crore to Rs.111 crore.

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Enterprise highlights

In Q2 FY26, the corporate reported continued development in its B2B enterprise on excessive base and a slowdown in its development because of its B2C Enterprise impacted by extreme climate situations in geographies & quick festive season. The place it holds round 16% market share within the premium phase & 7% within the paint business.

The corporate reported distinctive gadgets amounting to Rs.1,874 crore– revenue from droop sale of Powder Coatings enterprise division and the Worldwide Analysis Middle division. Which brings the agency’s focus to core ornamental paints signaling improved ROCE & ROE within the coming quarters.

Concerning the firm 

Akzo Nobel India Ltd. is one among India’s main paint and coatings firms, identified primarily for its Dulux model of ornamental paints. It’s the Indian subsidiary of Akzo Nobel N.V., a worldwide Dutch multinational headquartered in Amsterdam, identified for coatings, paints, and specialty chemical compounds.

Manufacturers: Dulux Velvet Contact, Dulux Weathershield, Dulux SuperClean and Dulux Merely Refresh. With a Distribution community over 15,000 shops throughout India. Key merchandise: Interpon powder coatings, Worldwide protecting coatings, and specialty coatings for OEMs and metal buildings.

The corporate delivered a ROCE of 41.7% with ROE of 32.2%, reflecting environment friendly allocation of sources. Moreover, this quarter it has a dividend payout of 106% with dividend yield of three.02%, suggesting sturdy money flows.

Written by Gourav Pratap Singh