JSW Dulux Q1 FY27 Results (NSE: JSWDULUX)
Signal: Revenue declined
The read
The underlying demand inflected positively, with comparable retained-business volume up 25% and revenue up 18.8%, but reported operating momentum remains obscured by the business divestitures and a 530bps YoY gross-margin compression; the next thesis test is whether calibrated pricing reverses the raw-material pressure without sacrificing volume.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹965 Cr | -2.8% | +9.2% |
| EBIT | ₹94.7 Cr | -9.1% | |
| Net profit | ₹79.7 Cr | -12.4% | |
| EPS | ₹17.51 | -12.4% | |
| EBIT margin | 11.9% |
P&L walk
Consolidated revenue from operations was ₹9,650 million, down 2.8% YoY and up 9.2% QoQ; gross margin fell to 37.4% from 42.7% as raw-material costs rose to 65.9% of revenue, while EBITDA margin declined to 11.9% and PAT fell 12.4% to ₹797 million.
Segments
No reportable segment split was disclosed beyond the single Paints business; the material consolidated-versus-standalone gap was ₹797 million versus ₹1,355 million PAT, driven by ₹559 million of subsidiary dividend income recognized standalone but not consolidated.
Key positives
- Comparable retained-business volume grew 25% and revenue grew 18.8% YoY, indicating the retained portfolio is growing materially faster than reported revenue decline of 2.8%.
- Comparable retained-business EBITDA grew 14.7% to ₹1,151 million despite raw-material inflation, supported by prudent cost management.
- Decorative paints growth was led by the core Premium portfolio, while industrial paints added orders in energy, infrastructure, automotive OEM, vehicle refinish and coil coatings.
- Two new decorative propositions were launched: upgraded Dulux Aquatech waterproofing products and Sadolin Hydro PU water-based wood coating.
Key concerns
- Consolidated gross margin compressed 530bps YoY to 37.4% as raw-material cost rose to 65.9% of revenue from 52.2%, indicating that price increases only partly offset inflation.
- Consolidated EBITDA margin fell 160bps YoY to 11.9% and reported PAT declined 12.4% to ₹797 million despite strong comparable retained-business growth.
- Reported comparability remains impaired because the Powder Coatings and International Research Center divisions were sold in September 2025.
- Standalone PAT of ₹1,355 million was substantially above consolidated PAT of ₹797 million because of ₹559 million subsidiary dividend income and other non-operating items; headline standalone earnings therefore overstate recurring operating performance.
Research and educational content only. Not investment advice.