Kansai Nerolac Paints Limited Earnings Summary — Q4 FY2026
Kansai Nerolac Reports Steady Revenue Growth Amid Softening Margins and Stagnant Profits
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 21.5% sequentially in Q1 FY2027.
- Revenue of ₹2,374 Cr is 9.8% higher year-on-year.
- Revenue has compounded at 13.9% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹232 Cr is 4.8% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 36.0% annualised across the period.
- Operating margin stands at 13.8% in Q1 FY2027.
- Operating margin compressed by 19 bps year-on-year.
- Over the last two years operating margin has contracted by 162 bps.
- PBT margin is 13.2%.
- Expenses grew 10.0% against revenue growth of 9.8%.
- Operating profit of ₹328 Cr is 8.3% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 69/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 2,374 | 1,954 | 1,982 | 1,954 | 2,162 | 1,817 | 1,922 | 1,951 | 2,133 | 1,769 |
| Expenses | Improving | 2,045 | 1,737 | 1,742 | 1,739 | 1,859 | 1,651 | 1,687 | 1,739 | 1,803 | 1,590 |
| Operating Profit | Improving | 328 | 217 | 240 | 215 | 303 | 166 | 235 | 212 | 330 | 179 |
| Operating Margin | Improving | 13.8% | 11.1% | 12.1% | 11.0% | 14.0% | 9.1% | 12.2% | 10.9% | 15.4% | 10.1% |
| Other Income | Volatile | 55 | 11 | -10 | 28 | 53 | 37 | 671 | 27 | 34 | 33 |
| Interest | Stable | 8 | 8 | 9 | 8 | 7 | 8 | 9 | 7 | 7 | 7 |
| Depreciation | Improving | 63 | 61 | 60 | 54 | 53 | 52 | 53 | 49 | 48 | 48 |
| Profit Before Tax | Volatile | 312 | 158 | 161 | 182 | 295 | 144 | 844 | 183 | 308 | 157 |
| Tax | Volatile | 84 | 49 | 44 | 48 | 80 | 41 | 181 | 63 | 83 | 42 |
| Net Profit | Volatile | 232 | 112 | 121 | 135 | 221 | 108 | 681 | 123 | 231 | 116 |
| Net Margin | Volatile | 9.8% | 5.8% | 6.1% | 6.9% | 10.2% | 6.0% | 35.4% | 6.3% | 10.8% | 6.6% |
Key Takeaways
- Revenue for Q4 FY2026 stood at ₹1,954 Crores, reflecting a 10.5% year-on-year growth compared to the March 2024 quarter.
- Net profit saw a slight decline both year-on-year (-3.5%) and quarter-on-quarter (-6%), ending at ₹110 Crores.
- Operating margins have stabilized around 11%, showing a recovery from the 9% low seen in Mar 2025 but remaining off recent highs.
- The company maintains a very strong balance sheet with minimal borrowings of ₹303 Crores against substantial reserves of ₹6,633 Crores.
- Tax expenses remained high at 31% for the latest quarter, impacting the bottom-line performance.
- The industrial coatings segment continues to be a core pillar, though the company faces rising competition in the decorative paint space.
- Profitability has been somewhat stagnant over the last few quarters despite steady revenue, indicating cost pressures.
Management Guidance
The strategic focus remains on 'Premiumization' and expanding presence in project sales and service segments to defend market share.
Sentiment Shift
Stable
While revenue is growing, profitability is currently plateauing as the company navigates high competition and raw material sensitivity.
Outlook
The outlook remains cautious yet steady; growth is tied to the cyclicality of the automotive sector and the company's ability to counter new entrants in the decorative segment.
From the Annual Report (Key Quotes)
“Kansai Nerolac maintains a dominant market leader position in India's industrial coatings sector.”
“The company has transformed from a paint manufacturer into a broader solutions provider.”
“Strategic focus has shifted toward 'Premiumization' and expanding the presence in the 'Project Sales' and 'Services' segments.”
Official Quarterly Documents
This summary is AI-generated from Kansai Nerolac Paints Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.