Synopsis:
Shares traded flat after a large block deal worth ₹765 crore, reflecting strong investor activity. Despite weak Q1 earnings with lower revenue and profit, growth strategies focus on festive demand, distribution expansion, digital investments, and margin stability to strengthen long-term market presence.
The shares of a prominent paint manufacturer are trading flat in today’s session after the company saw 22.77 lakh shares change hands at Rs 3,359 per share, worth Rs 765 crore in block deals.
With a market capitalization of Rs 15,399.46 crore, the shares of Akzo Nobel India Ltd were trading at Rs 3,381.50 per share, decreasing around 0.39 percent as compared to the previous closing price of Rs 3,394.65 apiece.
Block Deal
According to the source, Akzo Nobel India witnessed heavy block deal activity as 22.77 lakh shares, representing 5% of its equity, worth ₹765 crore, were traded at ₹3,359 per share. While the parties involved remain undisclosed, the sizable transaction reflects strong investor interest and could influence stock sentiment in the near term.
As per an earlier source, Imperial Chemical Industries was set to divest a 5% stake in the paint maker through a ₹742.7 crore block deal, with a floor price of ₹3,261.80 per share, reflecting strategic stake trimming.
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Financial & Operating Highlights
The company reported a subdued Q1FY26 performance, with revenue slipping 4% to ₹995 crore and net profit declining 21% to ₹91 crore. The weaker earnings indicate margin pressures or softer demand, highlighting the need for stronger operational efficiency and growth drivers in the coming quarters.
Recently, JSW Paints acquired a 74% stake in ANI for ₹8,926 crore at 22x EV/EBITDA. This move strengthens JSW’s position in India’s growing paints market, leveraging AkzoNobel’s technology and expertise. ANI will benefit from JSW’s distribution network, while the deal boosts Dulux brand potential and enhances growth opportunities in decorative and industrial coatings.
Akzo’s growth strategy centers on festive demand, new product launches, and expanding into construction chemicals. Execution will focus on dealer recovery, stronger channel management, and wider distribution, targeting 8,000 towns in two years. With heavy digital investments in lead management and sales productivity, Akzo aims to boost revenues, innovation, and operational efficiency while strengthening market presence.
Akzo sees stable EBITDA margins with no major dilution expected, supported by a strong gross margin profile post-powder coatings separation. Vehicle refinish remains the highest-margin segment. While anti-dumping duties on raw materials pose challenges, adequate stock cushions near-term impact. For FY26, the company targets high single-digit revenue growth, with EBITDA likely staying in the recent range.
Written by Abhishek Singh
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