Decorative new business saliency
10%+
+2pp YoY
New businesses (waterproofing, construction chemicals) now contribute over 10% of decorative sales.
KANSAINEROLACPAINTS
Manufacturing
28 Apr 2026
Kansai Nerolac Paints Limited — Q4 FY26
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.
✓ Verified against BSE filing
2-Min Summary
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.
Key Numbers
Painters program coverage
1.2L
+20% YoY
Painters associated with the program increased to 1.2 lakh, improving secondary salience.
Industrial capacity utilization
70-75%
flat YoY
Powder and liquid coating segments operate at 70-75% capacity, with room for growth.
Decorative project business share
10%+
+2pp YoY
Project business now accounts for over 10% of decorative sales, with high double-digit growth.
Management Guidance
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.
marginsCumulative 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.
revenueDouble-digit growth target for performance coatings
Management aims to grow the performance coatings segment in double digits, driven by infrastructure spending.
growthKey Risks
West Asia crisis and supply chain disruptions
Geopolitical tensions have caused crude price surges and supply chain issues, impacting raw material costs and availability.
high · management_commentaryRupee depreciation increasing import costs
Sharp rupee depreciation has raised the cost of imported raw materials, pressuring margins.
high · management_commentaryDemand visibility remains uncertain due to inflation
Management described demand visibility as 'wait and watch' given the inflationary scenario, with potential impact on consumption.
medium · management_commentaryNew 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.
medium · analyst_questionNotable Quotes
Our focus is very clear we'll be focusing on select market where you want to gain market share and concentrate second thing is profitable mix is very very important so we have cautiously curtailed our sale into items which are not profitable.
I think it's important to deploy resources carefully and it's a time where actually resilience will matter and I think if we pass through this I think future is very bright for decorative paint as far as companies concerned.
If this war gets over soon then there should not be any impact as the overall year is concerned but of course if this gets dragged on then it starts impacting our delays in terms of fuel increase and all those other costs going up then it is anybody's guess.