India · Delayed Price · Currency is INR Kansai Nerolac Paints Earnings Call Transcripts
Fiscal Year 2027
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Consolidated revenue grew 9.8% year-over-year, driven by high single-digit growth in decorative and double-digit growth in industrial segments. Margins were stable despite inflation, with further price hikes and premiumization expected to support profitability. CapEx of INR 601 crore announced for capacity expansion.
Fiscal Year 2026
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FY2025-26 revenue rose 3.2% and EBITDA increased 1.2%, while PBT before exceptional items declined 0.9%. The board recommended INR 2.50 per share; management cited competition and input-cost volatility while outlining efficiency and growth plans.
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Q4 saw balanced growth in both Decorative and Industrial segments, with improved profitability and a strong contribution from premium products. Multiple price hikes offset input cost inflation, and the outlook remains positive if geopolitical risks subside.
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Q3 saw modest revenue growth, with industrial and automotive segments outperforming decorative, which was flat to marginally negative. Premium product mix improved, EBITDA margin guidance is maintained at 13-14%, and the company expects recovery in Q4 amid ongoing competitive intensity.
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Q2 FY26 saw flat revenue growth and margin pressure, with decorative segment slightly negative and industrial segment resilient. Dealer expansion, innovation, and premiumization continue, while margin guidance is maintained and gross margin improvement is expected in H2.
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Revenue grew modestly while EBITDA margins declined due to regional disruptions and product mix. Industrial segment outperformed, new products and services gained traction, and margin expansion is targeted for FY26 despite ongoing competitive and input cost pressures.
Fiscal Year 2025
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FY2024-25 revenue grew 1.4%, while EBITDA fell 4.8%; the Board recommended INR 3.75 per share, including a special dividend. Plans include INR 314 crore of FY2025-26 CapEx and industrial expansion amid competition and cost volatility.
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Revenue growth was modest with Q4 up 4.7% and full-year up 1.4%, while EBITDA margin guidance remains at 13-14%. Decorative and industrial segments showed resilience amid competition and cost pressures, with new product launches and digital initiatives supporting growth.
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Q3 FY25 delivered modest revenue and profit growth despite demand slowdown and heightened competition. Premiumization, new product launches, and distribution expansion supported performance, while the company maintained margin discipline and prepared for leadership transition.
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Revenue grew 1% year-over-year, with industrial outperforming decorative and premium products gaining share. EBITDA margin declined due to mix and inflation, but guidance remains at 13%-14%. Demand is expected to improve in H2, with rural and project segments showing strength.
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Q1 FY2025 saw a slight revenue dip but improved margins and profit before tax, driven by premiumization and strong industrial demand. Decorative demand is expected to recover with better monsoon, while new products and digital initiatives support growth.
Fiscal Year 2024
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FY2023–24 top line rose 4.4%, EBITDA 28.8% and PBT before exceptional items 42%; a 375% dividend included a special payout. Capex of INR 486 crore is planned for the coming year, amid competition and overseas subsidiary pressures.