JSW Dulux Q2 retained revenue rises 21.3%, EBITDA up 4.4%

JSW Dulux Limited reported retained-business revenue of Rs 961.9 crore in Q2 FY27, up 21.3% year on year, while comparable EBITDA from operations rose 4.4% to Rs 110.9 crore as 21% volume growth was partly offset by elevated raw-material inflation cited by management.

Why did JSW Dulux revenue increase in Q2 FY27?

JSW Dulux increased comparable retained-business revenue by 21.3% to Rs 961.9 crore in Q2 FY27 from Rs 793.3 crore a year earlier, supported by 21% volume growth. On the reported standalone basis, revenue rose 16.2% from Rs 827.6 crore because the prior-year reported figure included businesses that were subsequently carved out.

JSW Dulux said Decorative Paints saw traction across categories before the festive season, while Industrial Paints benefited from demand in infrastructure and energy. It also cited customer wins and entry into new verticals in automotive coatings, although it reported Paints as its sole operating segment and disclosed no separate divisional revenue or profit figures.

The comparable prior-year retained-business figures exclude carved-out operations and are provisional, unaudited management estimates. For H1 FY27, retained-business revenue rose 20.0% to Rs 1,926.9 crore from Rs 1,605.3 crore, alongside 23% volume growth, compared with the Q2 volume increase of 21%.

How did raw-material inflation affect JSW Dulux profitability?

JSW Dulux’s comparable EBITDA from operations rose 4.4% to Rs 110.9 crore in Q2 FY27, slower than its 21.3% revenue growth, as management said raw-material inflation remained elevated. The implied comparable EBITDA margin was about 11.5%, compared with about 13.4% in Q2 FY26, based on the revenue and EBITDA figures disclosed in the release.

Comparable Q2 profit after tax excluding exceptional items was Rs 71.2 crore, up 2.0% from Rs 69.8 crore. This comparison removes Rs 1,874.2 crore of pre-tax exceptional items in Q2 FY26 related to the sale of the Powder Coatings business division, the International Research Center division and related costs.

Management said it implemented calibrated price increases to partly offset margin dilution and would continue evaluating conditions as geopolitical disturbances affect input inflation. The announcement does not identify the affected raw materials, quantify price increases, or provide an EBITDA margin target.

What do JSW Dulux’s reported half-year results show?

JSW Dulux reported H1 FY27 comparable EBITDA from operations of Rs 226.0 crore, up 9.4% from Rs 206.6 crore, while retained-business revenue increased 20.0% to Rs 1,926.9 crore. The pace of EBITDA growth therefore remained below sales growth across the six months ended September 30, 2026.

On a reported standalone basis, H1 EBITDA fell 7.8% to Rs 226.0 crore from Rs 245.1 crore, because the prior-year base included the carved-out business. Reported H1 standalone revenue increased 5.8% to Rs 1,926.9 crore from Rs 1,820.7 crore, illustrating the difference between the reported and retained-business comparisons.

Comparable H1 profit after tax excluding exceptional items was Rs 206.7 crore, up 50.5% from Rs 137.3 crore. JSW Dulux said this amount included Rs 55.9 crore of dividend income from subsidiary ICI India Research and Technology Centre Private Limited, based on a dividend of Rs 447 per equity share.

What changed in JSW Dulux’s working capital and cash position?

JSW Dulux’s consolidated inventory increased to Rs 811.9 crore at September 30, 2026 from Rs 571.1 crore at March 31, 2026, while trade receivables increased to Rs 669.5 crore from Rs 602.9 crore. The H1 FY27 consolidated cash-flow statement recorded Rs 238.2 crore used by higher inventories and Rs 69.3 crore used by higher receivables.

Consolidated operating cash flow was an inflow of Rs 133.3 crore in H1 FY27, compared with an outflow of Rs 194.7 crore in H1 FY26. Cash and cash equivalents nevertheless declined to Rs 81.3 crore at September 30, 2026 from Rs 269.8 crore at the start of the period, after financing outflows of Rs 298.3 crore.

Those financing outflows included Rs 227.4 crore of dividend payments and Rs 54.6 crore used to purchase treasury shares through the JSW Dulux employee stock-option-plan trust. Total consolidated assets rose to Rs 3,870.9 crore from Rs 3,795.3 crore, while current liabilities increased to Rs 1,320.8 crore from Rs 1,143.2 crore.

What products and corporate actions did JSW Dulux disclose?

JSW Dulux launched VT Soft Sheen pan-India in Q2 FY27 under its Accessible Luxury portfolio, combining its TruColour proposition with an eight-year Dulux Assurance warranty. The company also introduced the EONIX Rubbing & Polishing Compound range for original-equipment-manufacturer-authorised workshop networks, extending its automotive refinish offering into adjacent categories.

Shareholders approved a 10:1 subdivision of JSW Dulux equity shares, reducing the face value to Re 1 from Rs 10 per share. The subdivision became effective on the October 22, 2026 record date, while the board approved on November 4, 2026 a proposal to shift the registered office from Kolkata to Mumbai, subject to shareholder and regulatory approvals.

Conclusion

JSW Dulux combined 21.3% comparable Q2 revenue growth and 21% volume growth with a 4.4% increase in comparable EBITDA. Demand was cited across decorative, industrial and automotive-related activities, but the gap between revenue and EBITDA growth reflected management’s disclosure of elevated raw-material inflation and partial price offsets.

The next operating issue to watch is whether management introduces further calibrated price increases as it evaluates geopolitical disruption and input-cost conditions. The company’s next financial disclosures can also show whether inventory of Rs 811.9 crore and receivables of Rs 669.5 crore at September 30, 2026 convert into operating cash flow.