Kansai Nerolac Q1 results: Net profit, EBITDA decline, margins narrow

Kansai Nerolac Paints Ltdon Monday reported the results for the first quarter of financial year 2026. The paint maker posted a 4.2% year-on-year decline in first-quarter net profit to ₹220.9 crore, weighed down by lower operating margins.

Revenue rose 1.4% to ₹2,162 crore, while EBITDA fell 8.5% to ₹303 crore. Operating margin narrowed to 14% from 15.5% a year earlier, the company said in a regulatory filing.

The company reported a 4.1% year-on-year decline in profit before tax at ₹310.08 crore for the quarter ended June.

Managing Director Pravin Chaudhari said demand in the Decorative segment showed signs of revival, though an early monsoon and disruptions in April impacted performance, particularly in northern markets.

Chaudhari noted that raw material prices remained soft, but forex volatility and geopolitical uncertainties persist, warranting caution going forward.

“Looking ahead, we anticipate an improvement in decorative demand driven by a favourable monsoon and the early onset of Diwali. In the industrial segment, we expect our market-leading growth trajectory to continue.”

Kansai Nerolac, one of India’s largest decorative and industrial paint manufacturers, supplies coatings to the automotive, powder coating, and general industrial sectors.

Shares of Kansai Nerolac ended 2.43% lower at ₹243.97 on the National Stock Exchange, underperforming the Nifty 50 index, which rose 0.64% on the day. The stock has declined 17.99% over the past 12 months and is down 7.45% year-to-date.

According to Bloomberg data, 9 out of 18 analysts tracking the stock have a “buy” rating, 4 recommend “hold,” and 5 suggest “sell.” The average 12-month target price implies modest upside from current levels.