Kansai Nerolac Paints Limited (KANSAINER)
₹185.23 +3.49% last close, 16 Oct
Q2 FY27 results
📅 Next results: 04 Nov 2026 (board meeting)Kansai Nerolac Paints Limited's board meets on 4 Nov 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Kansai Nerolac's revenue was ₹2,374 Cr (+9.8% year on year, +21.5% on the previous quarter), and net profit ₹228 Cr (+5.9% year on year); the operating margin was 13.8%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹2,374 | +9.8% | +21.5% |
| Operating profit | ₹328 | +8.4% | +52.0% |
| Net profit | ₹228 | +5.9% | +107.6% |
| EPS (₹) | 2.86 | +4.8% | +105.8% |
| Operating margin | 13.8% | — | — |
KANSAINER delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 54.09% of the KANSAINER shares traded on NSE were taken to delivery, against the stock's own 20-session average of 54.81%. That is close to its usual level.
Delivery in the last 5 sessions: 46.6% · 47.4% · 52.9% · 51.0% · 54.1%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Kansai Nerolac Paints Limited has received sanction from the NCLT Mumbai Bench for the Scheme of Amalgamation of Nerofix Private Limited with itself, delivered on September 24, 2026. Nerofix is a wholly owned subsidiary; hence, its entire paid-up capital of Rs 20.00 Cr will be cancelled, with zero shares issued or allotted. The Appointed Date of the amalgamation is retrospective to April 1, 2025. The scheme becomes effective upon filing certified orders (Form INC-28) with the Registrar of Companies.
- NCLT Mumbai Bench sanctioned the Scheme of Amalgamation via order delivered on September 24, 2026
- Appointed Date for the merger is fixed at April 1, 2025
- Entire paid-up share capital of Nerofix (Rs 20,00,00,000 comprising 2,00,00,000 equity shares of Rs 10 each) will be cancelled
- No new shares will be issued by Kansai Nerolac Paints as Nerofix is a wholly owned subsidiary
- Merger becomes effective upon filing certified orders via Form INC-28 with ROC Mumbai within 30 days of receipt
Kansai Nerolac Paints has received an order from the Joint Commissioner of State Tax (Appeal), Ahmedabad, granting partial relief by reducing a penalty to Rs 1,45,58,104 (~Rs 1.46 Cr). The dispute pertains to the disallowance of Input Tax Credit (ITC) claimed for FY 2017-18 in Gujarat. The company intends to appeal the order before the GST Appellate Tribunal. With TTM PAT at Rs 589 Cr, the financial exposure of ~Rs 1.46 Cr (~0.25% of annual profits) is immaterial.
- Penalty reduced to Rs 1,45,58,104 after partial relief granted by appellate tax authorities
- Dispute concerns disallowance of Input Tax Credit (ITC) for FY 2017-18 in the state of Gujarat
- Order received on August 25, 2026, under Rules 113(1) and 115 of the CGST Rules, 2017
- Penalty of ~Rs 1.46 Cr accounts for ~0.25% of TTM PAT (Rs 589 Cr), presenting no operational disruption
Kansai Nerolac Paints Limited (KNPL) released its Q1 FY 2026-27 investor presentation, highlighting a network expansion of 1,700+ new dealers. The company achieved double-digit growth in its Construction Chemicals, Waterproofing, and Wood Finish segments, which now contribute mid-single digits to the decorative business. While the industrial and powder coating segments saw robust growth, the company noted headwinds from significant crude price increases and rupee depreciation. KNPL is focusing on premiumization, evidenced by the launch of 'Excel Everlast' with an industry-first 20-year warranty.
- Added 1,700+ dealers to the distribution network during the quarter
- Achieved double-digit growth in Construction Chemicals and Waterproofing segments
- Expanded retail footprint to 180+ NXTGEN Shoppe and 380+ Nerolac Paint+ Zones
- Launched 'Excel Everlast' exterior paint featuring a 20-year performance warranty
- Digital marketing for Excel Everlast reached 550Mn+ impressions across key geographies
Kansai Nerolac reported a 9.8% YoY increase in consolidated revenue to Rs 2,373.59 Cr for Q1 FY27. Consolidated PBDIT grew 8.3% to Rs 328.37 Cr, though margins saw slight pressure as material costs rose to 65% of revenue from 63.9% YoY. The company is actively investing Rs 600 Cr in capacity expansions at its Sayakha, Bawal, and Hosur plants, targeting an additional 65,880 KL/year in paint and powder capacity. The decorative segment remains a focus with 1,700+ new dealers added during the quarter.
- Consolidated Net Revenue increased 9.8% YoY to Rs 2,373.59 Cr in Q1 FY27
- Rs 600 Cr total investment committed for capacity expansion across Sayakha, Bawal, and Hosur plants
- Total capacity addition of 65,880 KL/Year for Paint/Powder and 9,780 KL/Year for Resin
- Added 1,700+ dealers to the distribution network to increase geographical reach
- Material costs as a percentage of revenue increased to 65.0% from 63.9% in the previous year
Kansai Nerolac has approved a multi-location capacity expansion involving a total investment of Rs 601 crore, funded entirely through internal accruals. The expansion targets Industrial Paints, Powder Coatings, and Resins across its Sayakha, Bawal, and Hosur facilities to meet growing automotive demand. This investment represents approximately 7.5% of the company's TTM revenue and 9% of its net worth. The projects will be implemented in a phased manner with a completion target of FY 2028-29.
- Total investment of Rs 601 crore across three major plant locations (Sayakha, Bawal, and Hosur)
- Industrial paint capacity to increase by a combined 4,275 KL/month to address high utilization, specifically 95% at the Bawal plant
- Establishment of a new Powder Coating line at Sayakha with a capacity of 1,215 MT/month
- Backward integration through 815 MT/month addition of Industrial Resins at the Sayakha plant
- Project completion scheduled in phases by the end of FY 2028-29
Kansai Nerolac Paints reported a 10.2% YoY increase in standalone revenue to Rs 2,299.52 Cr for Q1 FY27. Consolidated PAT stood at Rs 228.41 Cr, representing a modest growth of 5.9% compared to Rs 215.59 Cr in the year-ago period. The company faced margin pressure due to geopolitical supply chain disruptions and rising raw material costs, which necessitated price increases. Management highlighted healthy demand in both Decorative and Industrial segments, the latter benefiting from strong performance in automotive coatings.
- Standalone Revenue from Operations grew 10.2% YoY to Rs 2,299.52 Cr.
- Consolidated Net Profit after tax reached Rs 228.41 Cr vs Rs 215.59 Cr in Q1 FY26.
- EBITDA for the quarter stood at Rs 335.89 Cr, a growth of 7.7% YoY.
- Consolidated Basic EPS for the quarter is Rs 2.86, compared to Rs 2.73 in the previous year's first quarter.
- The domestic paint industry size is estimated at approximately Rs 82,500 Cr as of March 2026.
Kansai Nerolac reported a steady Q1 FY27 with standalone revenue growing 10.2% YoY to ₹2,299.52 Cr, supported by healthy demand in both decorative and industrial segments. Consolidated Net Profit rose 5.9% YoY to ₹228.41 Cr, despite significant raw material inflation and supply chain disruptions caused by West Asian geopolitical tensions. The company implemented price increases to mitigate inflationary pressures, while EBITDA grew 7.7% YoY to ₹335.89 Cr. Management remains optimistic about festive demand in the second half of the year, despite an erratic monsoon.
- Standalone revenue from operations grew 10.2% YoY to ₹2,299.52 Cr.
- Consolidated Net Profit for the quarter increased to ₹228.41 Cr from ₹215.59 Cr YoY.
- Standalone EBITDA reached ₹335.89 Cr, a growth of 7.7% over the previous year's quarter.
- Standalone Profit Before Tax (PBT) stood at ₹325.75 Cr, up 5.1% YoY.
- The domestic paint industry size is estimated at approximately ₹82,500 Cr as of March 2026.
Kansai Nerolac Paints Limited has approved the allotment of 64,309 equity shares to employees on July 23, 2026. These shares were issued following the exercise of Restricted Stock Units (RSUs) under the company's 2022 RSU Plan. The shares have a face value of Re. 1 each and are fully paid-up. This is a routine administrative action related to employee compensation and represents a negligible dilution of the total equity base.
- Allotment of 64,309 equity shares of face value Re. 1 each
- Shares issued pursuant to the Kansai Nerolac Paints Limited - Restricted Stock Units Plan, 2022
- Allotment date confirmed as July 23, 2026
- In-principle approvals previously obtained from BSE and NSE in November 2022 and January 2024
Kansai Nerolac Paints has scheduled its Q1 FY 2026-27 earnings conference call for August 3, 2026, at 17:00 hrs IST. The management team, including the Managing Director and CFO, will discuss the financial results for the quarter ended June 2026. This follows a trailing twelve-month (TTM) revenue of ₹8,052 Cr and a PAT of ₹576 Cr. The call is a standard procedural event for management to interact with analysts and institutional investors.
- Conference call scheduled for August 3, 2026, at 17:00 hrs India Time
- Management representation includes the Managing Director, CFO, and Director of Corporate Planning
- Discussion will focus on Q1 FY 2026-27 financial results
- Company reported a TTM EPS of ₹7.29 and an OPM of 12.1% as of the latest context
Kansai Nerolac Paints Limited held its 106th Annual General Meeting on July 9, 2026, where shareholders approved all four proposed resolutions with a requisite majority. A final dividend of ₹2.50 per equity share (250% of face value) for the financial year ended March 31, 2026, was ratified. The meeting also confirmed the re-appointment of Mr. Takashi Tomioka as a Non-Executive Director and the adoption of the FY26 audited financial statements. A total of 1,49,460 shareholders were on record as of the cut-off date, July 2, 2026.
- Final dividend of ₹2.50 per equity share (250%) approved for FY2025-26
- Total of 69,99,78,099 votes cast in favor of the dividend resolution, representing 99.9998% of votes polled
- Re-appointment of Mr. Takashi Tomioka as Non-Executive Director approved with 99.79% majority
- 1,49,460 shareholders were eligible to vote as of the record date of July 2, 2026
- Remuneration for Cost Auditor D. C. Dave & Co. ratified for the financial year ending March 31, 2027
Kansai Nerolac Paints Limited has scheduled its Board Meeting for August 3, 2026, to approve the unaudited standalone and consolidated financial results for the quarter ending June 30, 2026. In accordance with SEBI Insider Trading regulations, the company will close its trading window for designated persons from July 1, 2026, to August 5, 2026. This is a standard regulatory procedure ahead of quarterly earnings announcements. General investors are not affected by this trading window closure.
- Board Meeting scheduled for August 3, 2026, to review Q1 FY27 financial performance.
- Trading window for insiders closed from July 1, 2026, through August 5, 2026.
- Financial results will cover both Standalone and Consolidated performance for the period ending June 30, 2026.
- Company has implemented PAN-level freezing for designated persons to ensure regulatory compliance.
Kansai Nerolac Paints Limited (KNPL) has released its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26, disclosing a turnover of ₹7,739.2 Crores and a net worth of ₹6,695.7 Crores. The company remains a subsidiary of Kansai Paint Co., Ltd., Japan, which holds a 74.96% stake. KNPL operates 9 manufacturing plants and 1 R&D center, achieving a water-positive status despite operating in water-stressed regions. While customer complaints reached 8,427 due to expanded CRM tracking, the company resolved nearly all, maintaining high governance standards.
- Reported a total turnover of ₹7,739.2 Crores and a net worth of ₹6,695.7 Crores for the financial year 2025-26.
- Maintains a workforce of 5,367 employees and 4,874 workers, with 14.28% female representation on the Board of Directors.
- Achieved water-positive status, a critical metric as three manufacturing facilities are located in water-stressed regions.
- Exports contribute a minimal 0.13% to total turnover, with 100% of revenue derived from paint and varnish manufacturing.
- Identified decarbonization and climate change as primary material risks, with a focus on renewable energy and GHG inventorization.
Kansai Nerolac Paints Limited has scheduled its 106th Annual General Meeting (AGM) for July 9, 2026, to be conducted via video conferencing. The Board has recommended a dividend of ₹2.50 per equity share (250% of face value) for the financial year ended March 31, 2026. Key agenda items include the adoption of audited financial statements, the re-appointment of Director Takashi Tomioka, and the ratification of cost auditor remuneration. The company has fixed July 2, 2026, as the cut-off date for determining shareholder eligibility for voting and dividend payouts.
- 106th Annual General Meeting scheduled for July 9, 2026, at 11:00 AM IST via Video Conferencing.
- Recommended dividend of ₹2.50 per equity share of ₹1 nominal value (250%) for FY 2025-26.
- Cut-off date for e-voting and dividend eligibility is fixed as Thursday, July 2, 2026.
- Remote e-voting period starts on July 6, 2026 (9 AM) and ends on July 8, 2026 (5 PM).
- Agenda includes the re-appointment of Mr. Takashi Tomioka as a Non-Executive Director.
Kansai Nerolac Paints Limited has allotted 56,197 equity shares following the exercise of Restricted Stock Units (RSUs) under its 2022 RSU Plan. The shares have a face value of Re. 1 each and were issued at an exercise price of Re. 1. This allotment increases the company's total paid-up share capital to 80,87,14,470 shares. Such allotments are part of standard employee compensation practices and result in minimal equity dilution.
- Allotment of 56,197 equity shares of face value Re. 1 each.
- Shares issued at an exercise price of Re. 1 per share under the RSU Plan 2022.
- Post-allotment, total issued share capital stands at Rs. 80,87,14,470.
- The new shares are identical in all respects to existing equity shares.
Kansai Nerolac reported a robust performance for Q4 FY26, driven by high double-digit growth in the 2 and 3-wheeler industrial segments and double-digit demand in commercial vehicles. The company is aggressively pursuing premiumization in the decorative segment, highlighted by the launch of Excel Everlast 20, India's first exterior paint with a 20-year warranty. Despite headwinds from rising crude oil prices and rupee depreciation, the company expanded its retail footprint with 250+ Paint Plus zones and a painter network of 1.2 lakh influencers. Management remains focused on technological differentiation and ESG leadership, maintaining its position as India's second most recognized paint brand.
- Achieved high double-digit growth in 2 and 3-wheeler segments and double-digit growth in commercial vehicles and tractors.
- Launched Excel Everlast 20, the first exterior paint in India to offer a 20-year warranty using nano-silica technology.
- Expanded the 'Paint as a Service' initiative to over 250 cities and registered 1.2 lakh painters in the secondary influencer program.
- Ranked in the top 12 percentile of companies in the chemical industry group within the S&P Global ESG Index 2025.
- Successfully migrated to a new retail platform with 250+ 'Nerolac Paint Plus' zones opened across India.
Financial Performance
Revenue Growth by Segment
In Q1FY26, the industrial segment saw high single-digit volume growth, while the decorative segment remained flat. Overall revenue for Q1FY26 grew 1.4% YoY to INR 2,162 Cr. For the full fiscal 2025, revenue was flat at INR 7,962 Cr due to intense competition in the decorative space.
Geographic Revenue Split
The company has a dominant presence in Tier-2, Tier-3, and Tier-4/rural towns. It is currently targeting Tier-1 urban cities for its next phase of expansion to diversify its geographic footprint.
Profitability Margins
Operating margins declined to 12.2% in fiscal 2025 from 13.4% in fiscal 2024 due to a 12% increase in employee costs and reduced operating leverage. Management targets a short-term margin of 13-14% and a long-term goal of 15% through premiumization.
EBITDA Margin
Consolidated PBDIT margin for Q2FY26 stood at 11.0% (INR 215.3 Cr), a slight improvement from 10.9% YoY. However, H1FY26 PBDIT margin dropped to 12.6% from 13.3% YoY, reflecting higher operating expenses which rose to 23.1% of revenue.
Capital Expenditure
The company maintains a healthy financial risk profile where strong cash accruals are expected to be sufficient to meet annual capex and incremental working capital requirements. It holds a sizeable liquid surplus of over INR 2,000 Cr as of March 31, 2025.
Credit Rating & Borrowing
The company maintains a 'Stable' outlook with a net debt-free balance sheet. It has a fund-based working capital limit of INR 350 Cr which remains largely unutilised, indicating minimal borrowing costs.
Operational Drivers
Raw Materials
Crude-linked derivatives and Titanium Dioxide (TiO2) are the primary raw materials. TiO2 prices recently increased due to the imposition of anti-dumping duties on Chinese imports.
Import Sources
A significant portion of Titanium Dioxide was historically sourced from China, now subject to anti-dumping duties. Other crude-linked inputs are sensitive to global oil market fluctuations.
Key Suppliers
Not specifically named in the documents, though the company maintains healthy relationships with major global and domestic chemical suppliers.
Capacity Expansion
The company is investing to enhance capacity and backward integrate to counter the entry of large conglomerates. Specific MTPA figures are not disclosed, but investments are funded via internal accruals.
Raw Material Costs
Material costs accounted for 64.3% of revenue in H1FY26 (INR 2,648.1 Cr). Margins are highly susceptible to crude price volatility as 50% of revenue comes from the industrial segment where price hikes are difficult to implement.
Manufacturing Efficiency
Efficiency is driven by technological tie-ups with Kansai Paint Co., Ltd (Japan), particularly in the automotive segment to maintain market leadership.
Logistics & Distribution
Distribution is focused on Tier-2 to Tier-4 towns, with a strategic shift toward increasing penetration in Tier-1 urban markets.
Strategic Growth
Expected Growth Rate
10-12%
Growth Strategy
Growth will be driven by expanding into Tier-1 cities, launching technology-based premium products, and diversifying into non-paint categories like adhesives, construction chemicals, and waterproofing. The company is also divesting non-core assets, such as its 60% stake in the Sri Lankan subsidiary, to focus on high-growth Indian markets.
Products & Services
Automotive paints (passenger cars, utility vehicles, two-wheelers), decorative paints, adhesives, construction chemicals, and waterproofing products.
Brand Portfolio
Nerolac, Kansai Paint.
New Products/Services
Recent launches include premium decorative finishes and technology-based industrial coatings. The company is expanding into the 'non-paint' segment including construction chemicals.
Market Expansion
Targeting Tier-1 urban cities for expansion while protecting its dominant share in rural and Tier-2/3/4 markets.
Market Share & Ranking
Market leader in the Indian industrial paints segment and holds an established position (top tier) in the decorative paints segment.
Strategic Alliances
Strong technological and operational support from parent company Kansai Paint Co., Ltd, Japan, which is critical for maintaining the lead in the automotive OEM segment.
External Factors
Industry Trends
The industry is seeing a shift toward premiumization and non-paint products like waterproofing. The entry of large conglomerates is disrupting the traditional competitive landscape, leading to heightened capacity investments by incumbents.
Competitive Landscape
Intense competition in the decorative segment from established players and new large conglomerates; pricing pressure from strong regional players in mass-market products.
Competitive Moat
Moat is built on market leadership in industrial/auto paints, deep rural distribution (Tier 2-4), and access to Japanese technology. Sustainability depends on the ability to defend the decorative segment against new large-scale entrants.
Macro Economic Sensitivity
Highly sensitive to construction activity momentum (as per RBI) and monsoon timing, which affects the painting season and rural demand.
Consumer Behavior
Shift toward premium products and increasing demand for 'healthy and beautiful' environments, driving the launch of eco-friendly and technology-based paints.
Geopolitical Risks
Trade barriers such as anti-dumping duties on Chinese Titanium Dioxide directly increase production costs.
Regulatory & Governance
Industry Regulations
Subject to environmental and pollution norms for chemical manufacturing. Impacted by SEBI Listing Regulations regarding Risk Management and Corporate Governance.
Environmental Compliance
Committed to becoming carbon neutral; targets 70% renewable energy by 2030. Achieved water-positive status in 2024 with 126% replenishment in 2025.
Taxation Policy Impact
Effective tax rate is standard corporate rate; impacted by anti-dumping duties on key raw material imports.
Legal Contingencies
The company has a Whistle Blower Policy and Sexual Harassment Redressal mechanism in place. No specific high-value pending court cases or INR values for litigation were disclosed in the provided text.
Risk Analysis
Key Uncertainties
Volatility in crude oil prices could impact margins by over 2-3% if price hikes cannot be passed to OEMs. Competitive entry by conglomerates poses a risk to decorative market share.
Geographic Concentration Risk
Heavy reliance on Indian Tier-2 to Tier-4 markets; currently diversifying into Tier-1 to mitigate regional demand fluctuations.
Third Party Dependencies
Dependent on global chemical suppliers for crude-based monomers and Titanium Dioxide.
Technology Obsolescence Risk
Mitigated by continuous technology transfer from Kansai Paint Co., Japan, ensuring products meet modern OEM and environmental standards.
Credit & Counterparty Risk
Maintains a strong credit profile with a net debt-free balance sheet and superior liquidity (INR 2,000 Cr+ surplus).
