Kansai Nerolac Paints Q1 FY27 Results: Net Revenue Up 10.2% YoY to ₹2,299.5 Crore

What Happened ?

Kansai Nerolac Paints Limited announced its Q1 FY27 results, reporting standalone net revenue of ₹2,299.5 crore, up 10.2% YoY. EBITDA grew 7.7% YoY to ₹335.9 crore, while PBT grew 5.1% YoY to ₹325.8 crore. PAT for the quarter stood at ₹242.3 crore. Demand in both Decorative and Industrial segments remained healthy despite geo-political challenges and raw material inflation.

key details

• Standalone net revenue up 10.2% YoY to ₹2,299.5 crore.
• EBITDA up 7.7% YoY to ₹335.9 crore; EBITDA margin at 14.6%.
• PBT up 5.1% YoY to ₹325.8 crore.
• PAT up 5.0% YoY to ₹242.3 crore.
• EPS at ₹3.00, up 4.9% YoY.
• Consolidated net revenue up 9.8% YoY to ₹2,373.6 crore.
• Consolidated PAT up 5.9% YoY to ₹228.4 crore.
• Decorative segment demand healthy; Industrial segment demand better than market.
• Performance coatings registered strong growth.
• Price increases taken to partly offset severe raw material inflation.
• Indian paint industry estimated at ~₹82,500 crore as of March 2026.

Note:

• West Asia geo-political situation caused supply chain disruption and significant increase in raw material prices from March. The rupee depreciated sharply against the dollar. While the situation improved from the middle of the first quarter, uncertainty persists. KNP has taken price increases to partly offset the impact of severe inflation.

Risk Analysis

Summary:

• While demand remains healthy across segments, risks include geo-political uncertainty, raw material price volatility, and currency fluctuations.

Key Risks:

• Geo-political situation in West Asia causing supply chain disruptions.
• Raw material price volatility and inflation impacting margins.
• Rupee depreciation against the dollar increasing input costs.
• Erratic monsoon affecting rural demand.
• Intense competition in the paint industry.
• Regulatory changes affecting the paint sector.

Worst Case:

• Sustained geo-political tensions and raw material inflation could impact margins and profitability.

Risk Level: Medium

Company Commentary

Management highlighted that:

• Mr. Pravin Chaudhari, Managing Director, Kansai Nerolac Paints Ltd: “During the quarter, demand in both Decorative and Industrial has been healthy despite the prevailing geo-political situation. Demand was further helped due to late arrival of monsoon.”
• “In Decorative, demand for KNP was good. In Automotive, demand for KNP continued to be better than the market, on the back of various initiatives. Performance coatings registered strong growth.”
• “The West Asia geo-political situation caused supply chain disruption as well as a significant increase in raw material prices, coupled with uncertainty of supply starting from March. The rupee depreciated sharply against the dollar.”
• “While the situation has improved from the middle of the first quarter, uncertainty in the environment due to geo-political factors prevails, and we remain watchful. KNP has taken price increases in this period to partly offset the impact of severe inflation.”
• “Looking ahead, we anticipate that demand in both market segments will continue to remain strong despite an erratic monsoon and prevailing geo-political situation. Additionally, Diwali being later this year, should add a fillip to the festive demand.”