JSW Dulux vs Kansai Nerolac Paints Q4 FY26

JS

JSW Dulux

Q4 FY26 · Diversified

JSW Dulux delivered a record 23% volume growth in Q4 FY26, driven by pricing corrections and strong performance across both decorative and industrial verticals. Revenue grew 6.2% YoY on a like-to-like basis, with the gap between volume and revenue attributed to price and mix adjustments. EBITDA margin contracted to 14.4% (down 60bps YoY) due to elevated raw material costs and competitive pricing. Management guided for double-digit volume growth in FY27, targeting market share gains, though near-term margin pressure persists from crude-linked inflation. The company is integrating operations with JSW Paints, with systems integration expected post-Diwali. Key risk: sustained raw material inflation could further compress margins if pricing actions lag.

Guidance read

Double-digit volume growth target for FY27: Management targets double-digit volume growth in FY27, supported by pricing corrections and market share gains. Price increase of 9.7% executed by mid-May: Industry price increase of ~9.7% taken by May 15, but raw material inflation of 24-25% implies further 3-4% pricing needed. Systems integration post-Diwali: Integration of SAP systems with JSW Paints planned after Diwali, enabling cross-manufacturing and efficiency gains.

Risk read

Key risks include Raw material inflation may compress margins — Crude-linked raw material costs rose 24-25%, and only 9.7% price increase has been taken, leaving a gap of 3-4% that may pressure margins.; Competitive intensity remains elevated — Management acknowledged extreme competition, with players offering high discounts and trade spends, potentially limiting market share gains.; Integration risks from JSW Paints merger — Cultural and systems integration is ongoing; dealer integration for retail is only planned for early next year, posing execution risk..

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KA

Kansai Nerolac Paints

Q4 FY26 · Manufacturing

Kansai Nerolac reported a 7.6% standalone revenue growth in Q4 FY26, with PBDIT up 21% YoY, driven by improved product mix in decorative and double-digit auto demand. Decorative growth was mid-single digit, with a focus on premium products and new launches like Excel Sheen and XL Everlast. Industrial grew in higher single digits, with auto strong but other segments moderate. Management guided for 13-14% EBITDA margin, assuming raw material stability, and has taken cumulative price hikes of high single digits in decorative. Risks include prolonged West Asia crisis, crude volatility, and rupee depreciation. The company remains cautious on demand visibility due to inflation but sees green shoots from the past five months.

Guidance read

EBITDA margin target of 13-14% for FY27: Management reiterated its endeavor to maintain EBITDA margin in the 13-14% range, assuming raw material costs stabilize. Cumulative decorative price hikes of high single digits: Price increases of ~2% in March and 5-6% in April/May, totaling high single digits, to offset input cost inflation. Double-digit growth target for performance coatings: Management aims to grow the performance coatings segment in double digits, driven by infrastructure spending.

Risk read

Key risks include West Asia crisis and supply chain disruptions — Geopolitical tensions have caused crude price surges and supply chain issues, impacting raw material costs and availability.; Rupee depreciation increasing import costs — Sharp rupee depreciation has raised the cost of imported raw materials, pressuring margins.; Demand visibility remains uncertain due to inflation — Management described demand visibility as 'wait and watch' given the inflationary scenario, with potential impact on consumption.; New competition may intensify price wars — Analyst raised concern about aggressive pricing by new entrants; management noted freebies may have been withdrawn but advertising intensity remains high..

Promise ledger

Scorecard data is being built as historical quarters are processed.