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Kansai Nerolac Paints (500165) investor relations material
Kansai Nerolac Paints Q3 25/26 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 net revenue grew 3.5% year-over-year, with strong demand in automotive and project/institutional business, and continued expansion in dealer network and specialty stores.
Decorative segment faced marginally negative to flat revenue, while industrial and automotive segments achieved near double-digit growth, aided by innovation and network expansion.
Premium product mix improved, with Paint+ products contributing over 10% to decorative sales and services exceeding 5%.
Multiple industry awards and high ESG ratings received, reflecting operational excellence and sustainability focus.
New product launches and innovation in both decorative and industrial segments supported growth and differentiation.
Financial highlights
Standalone Q3 net revenue grew 3.5% year-over-year to ₹19,073.5 million; consolidated Q3 net revenue up 3.1% to ₹19,819.9 million.
Standalone Q3 PBDIT up 0.2% to ₹247.28 crore; consolidated PBDIT up 2.0%.
Standalone and consolidated PBT before exceptional items declined 3.7% year-over-year.
Exceptional items, including a ₹44.72 crore labour code expense, significantly impacted reported PBT and PAT.
EBITDA margin for Q3 was approximately 13%.
Outlook and guidance
Decorative segment expects mid-single digit growth in Q4, with recovery signs post-Diwali.
Industrial and automotive segments expected to maintain growth momentum in Q4.
EBITDA margin guidance maintained at 13-14% for the near term.
Construction activity, infrastructure, and GST-driven demand projected to sustain industry growth.
Decorative segment recovery anticipated to be gradual.
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