Shares of Akzo Nobel India, the Indian subsidiary of the Dutch paints and coatings multinational, are likely to attract significant attention from stock market investors on Friday, 2 January 2026. This follows the company's disclosure of major revisions to its Goods and Services Tax (GST) penalty dues by authorities in two states, as per filings made to the National Stock Exchange (NSE).
Karnataka GST Department Drastically Reduces Demand
In a significant relief for the company, the Karnataka GST Department has substantially lowered its GST demand. According to the exchange filing, the Assistant Commissioner of Commercial Taxes, LGSTO LTU, Large Taxpayers Unit in Bangalore, reviewed the company's response and issued a new order dated 30th December 2025. The revised demand now aggregates to ₹41,56,861 (over ₹41.56 lakh). This marks a dramatic reduction from the earlier demand of ₹17,66,46,778 (₹17.66 crore).
The company received this order on 1st January 2026 at 12:30 pm. The revised penalty breakdown includes a tax component of ₹12,89,949, interest of ₹15,76,963, and a penalty of ₹12,89,949.
Telangana GST Authority Increases Penalty Amount
In contrast to the Karnataka development, the Telangana GST Department has revised its penalty amount upwards. The Asst. Commissioner of the Kukatpally CGST Division in Hyderabad issued an order dated 29th December 2025, which the company received on 1st January 2026 at 1:10 pm.
This order contains a revised demand aggregating to ₹44,98,182 (over ₹44.98 lakh). The amount comprises a tax of ₹40,85,606 and a penalty of ₹4,12,576, along with applicable interest. This revised figure represents an increase from the original demand notice of ₹40,85,606 that was imposed on 30 September 2025.
Akzo Nobel India stated in its filing that it is in the process of responding to the relevant authorities within the stipulated timeframe for both cases.
Akzo Nobel India Share Price Performance and Market Reaction
The market will be closely watching the stock's movement following these regulatory updates. As per NSE data, Akzo Nobel India shares closed marginally higher by 0.08% at ₹3,180 on Thursday, 1 January 2026, compared to the previous close of ₹3,177.30.
The stock's performance over different timeframes presents a mixed picture:
- Long-term gains: The shares have given investors returns of over 43% in the last three years and more than 32% in the last five years.
- Recent pressure: However, the stock has declined by 10.76% over the past one year and has fallen 3.62% in the last one-month period.
- Short-term uptick: In the last five trading sessions, the share price has risen by 1.40%.
The stock's 52-week high stands at ₹3,957.90 (hit on 17 January 2025), while its 52-week low is ₹3,022 (recorded on 3 March 2025). The company's market capitalisation was ₹14,481.82 crore as of the market close on Thursday.
These revised GST orders from Karnataka and Telangana are expected to be a key factor influencing investor sentiment and trading activity in Akzo Nobel India shares in the immediate term, as the market assesses the financial and operational implications of these regulatory developments.
