JSW Dulux Warns Further Paint Price Hikes Could Weigh on Consumer Demand

JSW Dulux has signalled caution over further paint price increases, warning that another round of hikes could begin to affect consumer demand even though the recent increases have not yet resulted in a visible slowdown.

The company has raised prices by nearly 13% over the past few months as paint manufacturers respond to higher crude oil costs. Crude-derived materials account for at least a third of the industry’s raw material expenses, making oil price movements an important factor in production costs.

Speaking to The Economic Times, Rajiv Rajgopal, Joint Managing Director and CEO of JSW Dulux, said the company would need to balance any additional price adjustments against the risk of weakening demand. Consumers could postpone painting work or opt for lower-priced products if prices rise further, he indicated.

So far, the company has not seen clear evidence that the increases have affected consumption. However, Rajgopal said the possibility of customers delaying painting activity or choosing cheaper alternatives remains a concern. The comments highlight a challenge facing paint manufacturers: passing on higher input costs without discouraging households, contractors and other buyers.

JSW Dulux reported 21% year-on-year volume growth in its retained business on a standalone basis during the September quarter. Revenue from operations increased 21.3% to ₹961.9 crore, while operating EBITDA rose 4.4% to ₹106.3 crore. Profit for the quarter, excluding exceptional items, grew 2% to ₹71.2 crore.

The company clarified that the comparative figures for its retained business exclude carved-out operations and are provisional, unaudited and based on management estimates. They also reflect the regrouping of certain promotional expenses and dividend income.

The business operates under the JSW Dulux name following JSW Paints’ acquisition of a majority stake in Akzo Nobel India’s Indian operations in 2025 and the subsequent renaming of the combined entity.

The wider paint industry has been adjusting prices after crude oil and related input costs climbed amid geopolitical tensions in West Asia. While price increases have so far coexisted with volume growth at JSW Dulux, the next phase will test how much additional cost consumers are prepared to absorb.

For paint manufacturers, the balance between protecting margins and sustaining demand is likely to remain central as companies assess raw material trends and plan pricing decisions in the coming months.