# JSW Dulux Faces Margin Pressure Amid Rising Raw Material Costs Paint maker struggles to balance double-digit volume growth with necessary price hikes. - **Source:** [mint - companies](https://www.livemint.com/rss/companies) - **Published:** 2026-11-04 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/f413c8c0-36ee-4b04-a951-d6e6be38fe3c ## Volume Growth Versus Margins JSW Dulux reported a 21% year-on-year volume growth in the September-ended quarter, maintaining double-digit momentum through October. Despite this strong demand, the company faces significant margin erosion. Gross margins dropped to 36.8% in Q2FY27 from 41.7% in Q2FY26, as the firm struggles to fully offset rising input costs through price adjustments. ## Strategic Pricing Dilemma CEO Rajiv Rajgopal highlighted the difficult trade-off between protecting margins and maintaining consumer demand. The company has raised prices four times this year, totaling a 13% cumulative increase in the decorative paints segment. A further 1.5-2% hike is planned this month, yet management fears these increases could eventually trigger a consumption pullback. ## Market Inventory Dynamics Recent demand spikes may be partially attributed to dealers stocking up ahead of anticipated price hikes rather than pure consumer consumption. Rajgopal noted that while October demand was positive, it is too early to predict long-term trends. The company is cautious about whether current sales figures accurately reflect underlying market health or inventory cycles. ## Industry-Wide Cost Pressures The challenge is not unique to JSW Dulux, as Asian Paints also faces similar risks regarding input cost pass-throughs. Asian Paints implemented multiple hikes this year, including a 3.5% increase in November. Both companies are navigating crude oil volatility and currency movements that continue to exert upward pressure on their overall production costs. ## Financial Performance Overview Revenue from operations reached ₹961.9 crore in the September quarter, up from ₹793.3 crore in the previous year. However, Ebitda growth lagged at 4.4%, totaling ₹110.9 crore. These figures reflect the company's decision to absorb a portion of inflationary costs, which has directly impacted the bottom line compared to the prior year. ## Market Share Recovery Despite margin pressures, JSW Dulux has successfully recouped the 0.3-0.4 percentage point market share lost following the Akzo Nobel India acquisition. The firm is targeting a 5% share for the Dulux brand, aiming to reach 6% eventually. Combined with JSW Paints, the company targets a total decorative segment market share of 6-6.5%. ## Consumer Behavior Risks Persistent inflation poses a threat to discretionary spending, as households may defer home maintenance or switch to cheaper alternatives. Paint manufacturers are carefully monitoring these shifts to avoid pricing themselves out of the market. The company remains optimistic about the second half of the fiscal year, provided that crude oil prices stabilize soon. ## Future Outlook and Stability JSW Dulux maintains a buoyant outlook for the remainder of the financial year, assuming no major external disruptions occur. The company's ability to sustain growth depends on stabilizing raw material costs and consumer resilience. Investors reacted positively to the latest performance, with shares closing 1.38% higher, outperforming the broader Sensex index. ## Sources covering this story - https://www.livemint.com/companies/company-results/jsw-dulux-sees-strong-paint-demand-but-struggles-to-pass-on-rising-costs-11793796883663.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._