Akzo Nobel India Limited (AKZOINDIA) AI Stock Analysis

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Akzo Nobel India Limited

(NSE:AKZOINDIA)

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Rating:62Neutral

Price Target:INR 321.00▲(8.17% Upside)

Action:downgraded

Date:10/23/26

The score is held back primarily by weaker FY2026 financial quality—declining revenue, margin compression, and profits not backed by operating cash flow—despite a very strong balance sheet. Valuation is a key offset with a low P/E and high dividend yield, while technicals are neutral-to-slightly weak and do not add near-term support.

Positive Factors

Low Financial LeverageVery low leverage reduces solvency pressure and preserves room to fund operations, investment, or shareholder distributions through weaker cycles. This financial flexibility is a durable support because it limits dependence on borrowing when revenue or cash generation is volatile.

Negative Factors

Revenue ContractionThe return to declining revenue after several years of growth signals weaker near-term demand or execution and reduces operating leverage. If contraction persists, it can pressure distribution strength, investment capacity, and the company’s ability to sustain earnings growth.

Akzo Nobel India Limited (AKZOINDIA) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 136.02B
Dividend Yield: 8.55%
Average Volume (3M): 108.93K
Price to Earnings (P/E): 6.7
Beta (1Y): 0.48
Revenue Growth: -4.73%
EPS Growth: -82.36%
Country: India
Employees: 1,500
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Akzo Nobel India Limited Business Overview & Revenue Model

Company Description

Akzo Nobel India Limited specializes in the production, distribution, and sale of paint and coating solutions, serving both the Indian domestic market and international clientele. The company offers a comprehensive range of products, including marine...

How the Company Makes Money

Akzo Nobel India Limited primarily makes money by manufacturing, marketing, and selling paints and coatings in India. Its revenue model is largely product-sales driven and can be understood through two main streams: (1) Decorative paints: The company...

Akzo Nobel India Limited Financial Statement Overview

Summary

Mixed fundamentals: a very strong, low-leverage balance sheet supports stability, but FY2026 revenue declined (~7% YoY) and margins compressed. Reported net margin spiked to an atypical ~55% and is not supported by cash generation (operating cash flow only ~8% of net income), raising earnings-quality and visibility concerns.

Income Statement

58Neutral

Balance Sheet

86Very Positive

Cash Flow

34Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	35.91B	35.99B	40.65B	39.37B	37.77B	31.09B
Gross Profit	12.60B	11.02B	16.04B	15.69B	14.83B	12.26B
EBITDA	24.18B	24.53B	6.68B	6.66B	5.49B	4.54B
Net Income	19.63B	19.74B	4.29B	4.27B	3.35B	2.90B
Balance Sheet
Total Assets	0	37.95B	29.03B	29.04B	27.41B	25.92B
Cash, Cash Equivalents and Short-Term Investments	3.10B	3.36B	2.87B	5.14B	5.53B	4.47B
Total Debt	0	791.00M	621.00M	604.00M	697.00M	705.00M
Total Liabilities	-24.52B	13.44B	15.73B	15.74B	14.24B	13.32B
Stockholders Equity	24.52B	24.52B	13.30B	13.30B	13.16B	12.60B
Cash Flow
Free Cash Flow	-2.19B	466.00M	2.04B	3.67B	3.82B	580.00M
Operating Cash Flow	-1.95B	936.00M	3.11B	4.86B	4.86B	1.21B
Investing Cash Flow	10.57B	7.93B	1.23B	-860.00M	-151.00M	2.30B
Financing Cash Flow	-8.60B	-8.65B	-4.59B	-4.39B	-3.02B	-3.46B

Akzo Nobel India Limited Technical Analysis

Technical Analysis SentimentNeutral

Last Price296.75

Price Trends

50DMA300.90Negative

100DMA304.05Negative

200DMA298.11Negative

Market Momentum

MACD-7.41Negative

RSI55.09Neutral

STOCH72.63Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AKZOINDIA, the sentiment is Neutral. The current price of 296.75 is above the 20-day moving average (MA) of 285.16, below the 50-day MA of 300.90, and below the 200-day MA of 298.11, indicating a neutral trend. The MACD of -7.41 indicates Negative momentum. The RSI at 55.09 is Neutral, neither overbought nor oversold. The STOCH value of 72.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:AKZOINDIA.

Akzo Nobel India Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:AKZOINDIA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:KANSAINER	66Neutral	INR 166.91B	26.60	―	1.25%	9.83%	-46.61%
IN:ASIANPAINT	64Neutral	INR 2.44T	50.25	―	1.14%	12.37%	24.22%
IN:AKZOINDIA	62Neutral	INR 134.12B	6.74	―	8.55%	-4.73%	-82.36%
IN:BASF	56Neutral	INR 128.02B	21.16	―	0.85%	13.35%	59.30%
IN:BERGEPAINT	56Neutral	INR 556.01B	45.53	―	0.84%	7.93%	13.81%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SHALPAINTS	48Neutral	INR 7.10B	-8.12	―	―	-11.84%	-36.60%

* General Sector Average

Performance Comparison

IN:AKZOINDIA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:AKZOINDIA	Akzo Nobel India Limited	296.75	-33.98	-10.28%
IN:ASIANPAINT	Asian Paints Ltd.	2526.00	-344.11	-11.99%
IN:BASF	BASF India Limited	2925.45	-1458.27	-33.27%
IN:BERGEPAINT	Berger Paints India Limited	479.10	-95.91	-16.68%
IN:KANSAINER	Kansai Nerolac Paints Limited	201.15	-43.98	-17.94%
IN:SHALPAINTS	Shalimar Paints Ltd	85.15	13.91	19.53%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 23, 2026

Akzo Nobel India Limited AI Stock Analysis