Kansai Nerolac Paints Limited (KANSAINER)

Consumer Durables · Consumer Durables · NSE · Updated 13 August 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹208.19 ↓ 12.66% (1Y)

🎯 Key Takeaways

Kansai Nerolac Paints is in a strategic reinvestment phase, shifting focus from mature decorative growth to high-potential industrial and automotive coatings segments. Management is executing a multi-year capex plan to expand capacity and capture premium pricing opportunities, though near-term margin pressure persists due to delayed price pass-through.
Revenue declined 1.5% QoQ to ₹1,922 in Q3FY25.
⚠️ Margin pressure from delayed price pass-through in industrial segments despite planned 3-5% hikes, which could persist if raw material costs remain el

Market Cap

₹17,958

P/E Ratio

15.6

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

Kansai Nerolac Paints is in a strategic reinvestment phase, shifting focus from mature decorative growth to high-potential industrial and automotive coatings segments. Management is executing a multi-year capex plan to expand capacity and capture premium pricing opportunities, though near-term margin pressure persists due to delayed price pass-through. The company is positioning for long-term structural growth in industrial demand while maintaining discipline in capital allocation.

📰 What's Happening

In Q1 FY27, the company achieved 9.8% consolidated revenue growth to ₹2,299.52 crores, driven by strong decorative and industrial demand despite inflation and geopolitical headwinds. Management approved a significant capex of INR601 crores targeting expansion in automotive paint, powder coating, and industrial resins, with new capacity additions totaling 1,750 KL/month at Sayakha, 1,625 KL/month at Bawal, 900 KL/month at Hosur, and additional powder coating and resin lines at Sayakha, to be completed by FY2028-29. The Board approved unaudited Q1 results showing 10.2% YoY revenue growth, 7.7% EBITDA growth, and 5.1% PBT growth, with management highlighting resilience amid raw material inflation and rupee depreciation. A conference call on August 3, 2026, will provide further insights into operational performance and outlook, featuring MD Pravin Chaudhari and CFO Yash Ahuja.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY23	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	1,734	2,157	1,957	1,919	1,769	2,133	1,951	1,922
Operating Profit	178	1,010	295	264	212	363	239	906
OPM %	9.7%	15.4%	14.0%	12.7%	10.1%	15.4%	10.9%	12.2%
Net Profit	96	734	175	152	114	225	120	662
EPS	₹1.74	₹9.13	₹2.19	₹1.91	₹1.44	₹2.86	₹1.52	₹8.42

Revenue has shown a clear upward trend over the past year, growing from ₹1,734 crores in Q4FY23 to ₹2,299.52 crores in Q1FY27, reflecting strong demand momentum. However, operating performance has been volatile, with OPM declining from a peak of 15.4% in Q1FY24 and Q4FY23 to 12.2% in Q3FY25, indicating margin compression despite top-line growth. This pressure is attributed by management to delayed price pass-through in industrial segments, even as 3-5% price hikes are planned for Q2 to offset inflation. Net profit and EPS have also fluctuated, with a notable dip in Q2FY25 (₹120 crores) followed by recovery, suggesting operational variability amid expansion investments.

🔮 Management Outlook & What's Next

Management expects demand to remain strong in FY27, supported by late Diwali, infrastructure growth, and late monsoon resilience, with a target of 13-14% margin and 18% ROCE for the fiscal year. They anticipate 5% industrial price increases to offset cost pressures and are focused on executing capacity expansions to capture premium industrial growth. The company reaffirmed its positive long-term outlook for the domestic paint industry, now estimated at ₹82,500 crores, and emphasized that pricing discipline will be key to sustaining profitability amid ongoing capex.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Consumer Durables

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Titan Company Limited	3.70 L Cr	77.6	34.3%	41.0%	0.88
Asian Paints Limited	2.50 L Cr	65.0	26.0%	19.8%	0.04
LG Electronics India Limited	1.07 L Cr	—	—	—	—
Havells India Limited	75,873	54.2	—	—	—
Dixon Technologies (India) Limited	66,754	75.9	—	—	—
Berger Paints (I) Limited	62,200	54.5	—	—	—
Voltas Limited	40,722	56.8	—	—	—
Kalyan Jewellers India Limited	36,461	54.6	—	—	—
Blue Star Limited	34,091	61.2	—	—	—
Amber Enterprises India Limited	29,854	164.3	8.4%	4.1%	0.62

🔗 Peer Stock Analyses

TITAN ASIANPAINT LGEINDIA HAVELLS DIXON

⚠️ Risk Factors

1. Margin pressure from delayed price pass-through in industrial segments despite planned 3-5% hikes, which could persist if raw material costs remain elevated. 2. Execution risk around capex timelines, with new capacity additions only to be completed by FY2028-29, exposing the company to potential delays in capturing market share. 3. Raw material inflation and rupee depreciation continue to pose cost headwinds, with management acknowledging uncertainty around supply chain stability. 4. Geopolitical volatility and erratic monsoon patterns could disrupt demand momentum, particularly in decorative segments tied to festive cycles.

📋 Recent Filings

🧠 Analyst's Read

Kansai Nerolac is executing a deliberate shift toward industrial growth with disciplined capex and pricing strategy, but near-term margin volatility is expected. Investors should monitor the pace of price pass-through, progress on capacity commissioning, and management's ability to sustain ROCE expansion as the key near-term catalysts.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-08-13.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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