Kansai Nerolac Paints (500165) Q4 25/26 earnings summary

Executive summary

• Achieved balanced growth in both Decorative and Industrial segments, with consolidated net revenue up 7.5% in Q4 and 2.9% for the full year, supported by premiumization, new product launches, and expansion into new business areas.

• Enhanced brand visibility through impactful marketing, digital outreach, and strategic partnerships, earning multiple industry awards.

• Continued investments in ESG initiatives, receiving top percentile ESG ratings and recognitions.

• Audited standalone and consolidated financial results for Q4 and FY 2025-26 were approved with unqualified audit opinions.

Financial highlights

• Q4 consolidated net revenue: ₹19,537.1 million, up 7.5% year-over-year; FY consolidated net revenue: ₹80,519.1 million, up 2.9%.

• Q4 standalone revenue grew 7.6% year-over-year; PBIT up 21%, PBT before exceptional items up 12.8%.

• Q4 consolidated PBDIT up 30.6%, PAT up 7.3%; FY PBDIT up 3.4%, PAT down 48.1% due to exceptional items.

• Dividend of ₹2.50 per share recommended for FY 2025-26; CapEx for the year at ₹1,741 million.

• Standalone net cash from operating activities: ₹885.35 crore; consolidated: ₹894.37 crore for FY 2025-26.

Outlook and guidance

• Margin guidance for FY27 remains at 13%-14%, with a focus on maintaining or improving profitability.

• Demand outlook positive if geopolitical tensions ease; otherwise, inflation and supply chain risks could impact growth.

• Construction activity and government infrastructure focus expected to support demand.