Kansai Nerolac Paints (500165) Q4 24/25 earnings summary

Executive summary

• Achieved modest revenue growth in both standalone and consolidated results for FY25, with Q4 revenue up 4.7% year-over-year and full-year revenue up 1.4%.

• New Managing Director, Praveen Chaudhari, introduced, bringing extensive industry experience and leadership.

• Focused on premiumization, digital transformation, innovation, and sustainability, earning multiple industry and ESG accolades.

• Expanded distribution, influencer programs, and project business, driving higher market share in new business areas.

• Company maintains a strong brand presence, leveraging Japanese technology and product differentiation.

Financial highlights

• Standalone net revenue for FY25 was ₹7,496.7 crore (Rs 74,967 million), up 1.4% year-over-year; Q4 net revenue up 4.7%.

• Standalone PAT for FY25 at ₹1,021.2 crore (Rs 10,212 million), down from ₹1,182.9 crore (Rs 11,829 million) year-over-year.

• Consolidated net revenue for FY25 was ₹7,823 crore (Rs 78,230 million), up 0.3% year-over-year; Q4 consolidated net revenue up 2.7%.

• Consolidated PAT for FY25 at ₹1,109.3 crore (Rs 11,093 million), down from ₹1,175.9 crore (Rs 11,759 million) year-over-year.

• Dividend maintained at ₹3.75 per share (375%), including a special dividend of ₹1.25 per share (125%).

Outlook and guidance

• EBITDA margin guidance for FY25 remains at 13-14%.

• Rural demand and construction activity expected to remain strong; auto and performance coatings projected to maintain growth.

• Decorative segment expected to see better growth in the second half of the year, with recovery in Paint+, Construction Chemicals, and Wood finishes.

• Tractor sales showing signs of recovery.

• Raw material costs remained benign, but forex volatility and a good monsoon are key factors.