JSW Dulux Q2 FY27 Results Analysis: Volumes Surge 21%, Margin Misses Guidance (JSWDULUX)

Cofacto Research Published November 04, 2026 3 min read

Negative

JSW Dulux Ltd's Q2 FY27 numbers came in soft. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	November 04, 2026
Revenue (Q2)	Rs. 961.90 Cr (+16.23% YoY)
PAT (Q2)	Rs. 71.20 Cr
EBITDA margin	11.53% (-183 bps YoY)
EPS (Q2)	Rs. 15.63

Quarter Snapshot

Q2 FY27 delivered 21% volume growth and 21.3% comparable revenue growth, but EBITDA margin of 11.53% missed all of management's guided bands (13-15% latest) and slipped further QoQ as raw-material costs grew 38% against 16% revenue growth. Underlying PAT grew only 2.01% on the clean basis, with growth consuming working capital (inventories +42% since March). The volume franchise and debt-free balance sheet remain intact, but the margin-repair promise due by August-September 2026 was not delivered.

Q2 FY27 Expectations vs Results

Driver	Expected before results	What happened	Verdict
Revenue	"revenue likely in line to ahead, skewed by price/mix"	+16.23% reported, +21.3% comparable	Played out
Volume	double-digit at risk late-quarter vs a rival priced 12–18% lower	+21% volume	Played out
EBITDA margin	"recovery from Q1's 11.93% toward the guided 13–15% band looks behind the Aug–Sep deadline"	11.53% — below every band, down 40 bps QoQ	Played out
One-offs	"Q2 reverts from the Rs.55.9 Cr dividend and Rs.21.5 Cr refund-interest base; consolidated PAT converging toward standalone"	Other income Rs.2.4 Cr; consol PAT Rs.71.4 Cr vs standalone Rs.71.2 Cr	Played out
TiO2 duty	reimposition after the quarter is a Q3-onward cost item (per pre-call note, web-sourced, dated 24 Oct 2026)	Not addressed in this filing	Not observable
GST contingency / provisioning stance	live SCNs	Not addressed in this filing — remains open	Not observable

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
EBITDA margin 13–15%	Q1 FY27 earnings call, "given the crude prices"	11.53%	Missed
EBITDA margin 14.5–15% ex-synergies	Q3 FY26 earnings call	11.53%	Missed
EBITDA margin 14–16% "on a sustained basis"	Q2 FY26 earnings call	11.53%	Missed
Margin impacts to "neutralize by August-September 2026"	Q4 FY26 earnings call	11.53% vs 11.93% in Q1 — slipped further, not neutralized	Missed
Double-digit volume and value growth	Reiterated on the Q1 FY27 call; CEO quote in the media release: "consecutive quarter of double-digit volume and value growth"	Volume +21%; comparable revenue +21.3%	Met
Debt-free status (maintain)	Prior earnings calls	No borrowings on the 30 Sep 2026 balance sheet	On Track

Key Investment Insights

Key Positives

Revenue grew 16.23% YoY reported (Rs.961.9 Cr) and 21.3% on the comparable retained-business basis
Volume grew 21% YoY; H1 volume +23%
Comparable EBITDA grew 4.4% YoY (Rs.110.9 Cr vs Rs.106.3 Cr) despite raw-material inflation
Employee costs fell 2.62% YoY and other expenses grew 11.67% YoY, slower than revenue
H1 operating cash flow of Rs.141.7 Cr vs an outflow of Rs.(202.5) Cr in H1 FY26
Company remains debt-free with no borrowings on the 30 Sep 2026 balance sheet
Q2 is a clean quarter with other income of only Rs.2.4 Cr (0.25% of revenue) and no exceptional items

Risk Factors

EBITDA margin of 11.53% missed management's guided bands of 13-15%, 14.5-15% ex-synergies, and 14-16% sustained, and slipped 40 bps QoQ
Cost of materials consumed grew 38.05% YoY vs revenue growth of 16.23%; gross margin compressed to 36.78% from 40.77% LY
PAT-ex-exceptionals grew only 2.01% on 21% volume growth; reported EBITDA was flat (+0.27% YoY)
Inventories rose 42.16% since March (Rs.240.8 Cr build) and H1 CFO/PAT-ex-exceptionals was 0.686x
Comparable revenue growth approximating volume growth implies negative price/mix on the retained base against competitors priced 12-18% lower
Finance costs doubled to Rs.4.5 Cr (+95.65% YoY)