Synopsis: Shares of this company jumped 10.88 percent post Q4 FY26 results, driven by margin expansion, strong auto demand, and pricing actions despite mixed profit performance.
The share of this company, which is a top-three Indian decorative paint maker and the dominant leader in industrial, automotive, and powder coatings, gained investor traction after announcing Q4 numbers
With a market capitalization of Rs 17,083 crore, Kansai Nerolac Paints Ltd’s share made a day high of Rs 223.55 per share, up by 10.88 percent from its previous day’s close price of Rs 201.60 per share. The share of this company gave a negative return of 16 percent over the last year.
Results Overview
QoQ View: Revenue from operations in Q4 FY26 stood at Rs 1,953.71 crore compared to Rs 1,981.99 crore in Q3 FY26, reflecting a QoQ decline of around 1.43 percent. Profit before tax came in at Rs 158.44 crore versus Rs 161.41 crore in Q3 FY26, down about 1.84 percent QoQ.
Profit after tax was Rs 109.89 crore compared to Rs 117 crore in Q3 FY26, marking a decline of roughly 6.08 percent QoQ. Operating margin for Q4 FY26 stood at 11 percent versus 12 percent in Q4 FY25, indicating a YoY decline of 100 basis points
YoY View: Revenue from operations in Q4 FY26 stood at Rs 1,953.71 crore compared to Rs 1,817 crore in Q4 FY25, reflecting a YoY growth of around 7.53 percent. Operating margin improved to 11 percent in Q4 FY26 versus 9 percent in Q4 FY25, marking an expansion of 200 basis points.
Profit before tax rose to Rs 158.44 crore from Rs 144 crore, up about 10.03 percent YoY. Profit after tax increased to Rs 109.89 crore compared to Rs 102 crore in Q4 FY25, reflecting a growth of roughly 7.73 percent YoY.
Fiscal year comparison: Revenue from operations in FY26 stood at Rs 8,052 crore compared to Rs 7,823 crore in FY25, reflecting a growth of around 2.93 percent. Operating margin remained stable at 12 percent in both FY26 and FY25, indicating no change on a YoY basis.
Profit before tax declined sharply to Rs 797 crore from Rs 1,478 crore in FY25, marking a fall of about 46.07 percent YoY. Profit after tax also dropped to Rs 576 crore from Rs 1,109 crore in FY25, down around 48.06 percent YoY.
Q4 Performance Highlights
EBITDA Growth and Margin Expansion: The company delivered strong operating performance in Q4 FY26, with EBITDA (PBDIT) rising 30.6 percent YoY. Operating margin also improved to 11.1 percent from 9.1 percent, reflecting better cost control and improved operational efficiency across segments.
Revenue Driven by Strong Demand: Revenue grew 7.5 percent YoY to Rs 1,953.7 crore, supported by healthy demand trends. Growth was led by strong performance in the automotive space, particularly SUVs, along with a gradual recovery in the two- and three-wheeler segments.
Pricing Power and Business Strength: Despite input cost pressures from rising crude and raw material inflation, the company successfully implemented price hikes, highlighting strong brand positioning and pricing power. Growth was also supported by premiumisation, expansion in B2B projects, and new segments like construction chemicals and wood finishes, along with improved balance sheet strength.
Can industrial demand and autos sustain margin gains?
- Autos and industrial demand driving volume strength: Passenger vehicles and SUVs supported growth, while the two-wheeler segment delivered high double-digit growth, helping the industrial business maintain steady momentum across segments.
- Revenue and profitability improvement supported by mix: Q4 FY26 revenue rose 7.5 percent YoY to Rs 1,953.7 crore, while PBDIT surged 30.6 percent and PBT increased 23.2 percent, reflecting stronger operating leverage and product mix.
- Price hikes cushioning cost pressures: The company implemented 4 price increases between March and May 2026, leading to a high single-digit net hike in the decorative segment, helping offset raw material inflation and rupee depreciation.
- New growth engines strengthening margin outlook: Segments like waterproofing, construction chemicals, and projects each contribute over 10 percent of sales, while FY27 EBITDA margin guidance remains steady at 13–14 percent despite macro risks.
About the Company
Kansai Nerolac Paints Ltd, a subsidiary of Japan’s Kansai Paint Co. Ltd, is a top-three Indian decorative paint maker and the dominant leader in industrial, automotive, and powder coatings. Headquartered in Mumbai, it operates eight manufacturing units, offering products from home paints to specialized protective coatings.
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