This article first appeared on GuruFocus.

Volume Growth: 23% growth in both decorative and industrial verticals.

Revenue Growth: 6.2% increase, one of the strongest performances in the last four quarters.

EBITDA Growth: Approximately 2% growth on a like-to-like basis.

EBITDA Margin: 14.4%, slightly down from last year’s 15%.

Raw Material Cost Inflation: Hovering between 24% and 25%.

Price Increase: Close to 9.7% price increase executed by May 15.

Real Estate Income: 64.8 crores from the sale of real estate assets.

Final Dividend: 50 rupees per share for FY25-26, subject to shareholder approval.

Release Date: May 14, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

JSW Dulux Ltd (BOM:500710) reported a record volume growth of 23% in both decorative and industrial verticals.

The company achieved a 6.2% revenue growth, marking one of the strongest performances in the last four quarters.

JSW Dulux Ltd has successfully integrated its projects business and is working on cross-manufacturing to optimize production.

The company has launched new products under the Velvet Touch umbrella and is seeing traction in premium segments.

JSW Dulux Ltd has secured strategic tie-ups with leading OEM manufacturers and has a strong order book in oil and gas infrastructure.

Negative Points

The company is facing elevated raw material costs, with RMC inflation hovering between 24% and 25%, impacting margins.

There is a gap between volume and revenue growth due to price and mix adjustments, which the company is working to bridge.

Cultural and system integration is still ongoing, with full integration expected towards the end of the year.

The EBITDA margin has slightly declined due to price corrections and elevated spends, with a current margin of 14.4% compared to 15% last year.

The paint industry remains highly competitive, with aggressive pricing and incentives from competitors impacting market dynamics.

Q & A Highlights

Q: Can you provide an update on the cultural, dealer, and systems integration following the ownership change? A: Rajiv Jha, General Counsel, Company Secretary & Chief Compliance Officer, explained that cultural integration is progressing well with the team now based in Mumbai. Dealer integration has only been completed for the projects business, with retail integration planned for early next year. Systems integration is ongoing, with HR integration already completed.

Story Continues

Q: How is JSW Dulux addressing the gap between volume and revenue growth? A: Rajiv Rajgopal, Joint Managing Director and CEO, stated that the gap is due to price and mix adjustments. Price premiums were reduced in premium categories to align with market expectations, which impacted revenue growth. The company expects this gap to close in the coming quarters as the adjustments take effect.

Q: What is the company’s strategy for achieving its target market share of 8%? A: Krishna Rallapalli, Chief Financial Officer, mentioned that the target is a blended figure for decorative and industrial segments. The company is on a journey to strengthen its position, particularly in the decorative segment, aiming to become a strong number three player. In industrials, they are gaining traction with strategic tie-ups and expanding their presence in automotive and specialty coatings.

Q: How is the company handling the competitive dynamics in the paint industry? A: Rohit Ghanshyamdas Totla, Whole Time Director, noted that the industry remains highly competitive, with different players experiencing varying levels of margin pressure based on stock levels. JSW Dulux is focusing on maintaining competitiveness through strategic pricing and product quality.

Q: What are the future plans for brand activation and marketing spends? A: Rajiv Jha indicated that while specific plans are competitive and confidential, the focus is on converting high brand awareness into purchase intent. Campaigns are being developed to enhance brand perception, with a major campaign expected around Diwali.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.