Kansai Nerolac Paints Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Kansai Nerolac Paints Ltd filed with BSE on 12 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Kansai Nerolac reported standalone Q4 FY26 revenue growth of 7.6%, PBDIT up 21%, and PBT before exceptional items up 12.8%, while consolidated Q4 PBDIT rose 30.6%. Management described improved mix in both decorative and industrial segments, multiple price increases taken since late March in response to crude oil and rupee-driven input cost inflation, and continued double-digit growth in auto and two-wheeler segments. The Board recommended a dividend of 250%, or Rs 2.5 per share, for the year.
Numbers mentioned
Standalone revenue growth: 7.6% (Q4 FY26)
p. 7
“For the quarter 4 on a standalone basis, the revenue growth is 7.6% PBDIT was up 21% and PBT before exceptional items was up by 12.8%.”
Jason Gonsalves, page 7 of the filed PDF · View the filing
Standalone PBDIT growth: 21% (Q4 FY26)
p. 7
“For the quarter 4 on a standalone basis, the revenue growth is 7.6% PBDIT was up 21% and PBT before exceptional items was up by 12.8%.”
Jason Gonsalves, page 7 of the filed PDF · View the filing
Consolidated revenue growth: 7.5% (Q4 FY26)
p. 7
“For the consolidated basis, growth in quarter 4, revenue was up by 7.5%, PBDIT was up by 30.6% and PBT was before exceptional items was up by 23.2%.”
Jason Gonsalves, page 7 of the filed PDF · View the filing
Consolidated PBDIT growth: 30.6% (Q4 FY26)
p. 7
“For the consolidated basis, growth in quarter 4, revenue was up by 7.5%, PBDIT was up by 30.6% and PBT was before exceptional items was up by 23.2%.”
Jason Gonsalves, page 7 of the filed PDF · View the filing
Full year standalone revenue growth: 3.2% (FY26)
p. 7
“For the year on a standalone basis, net revenue is up by 3.2%, PBDIT is up by 1.2% and PBT before exceptional items was down by 0.9%.”
Jason Gonsalves, page 7 of the filed PDF · View the filing
Full year consolidated revenue growth: 2.9% (FY26)
p. 7
“For the full year, on a consolidated basis, net revenue is up by 2.9%, PBDIT was up by 3.4% and PBT before exceptional items was up by 1.4%.”
Jason Gonsalves, page 7 of the filed PDF · View the filing
Dividend: 250%, INR2.5 per share (FY26)
p. 7
“As far as the dividend is concerned, the Board has recommended a dividend for the year of 250%, which comes to INR2.5 per share.”
Jason Gonsalves, page 7 of the filed PDF · View the filing
Decorative projects contribution to sales: about 10% plus
p. 12
“I think decorative project should be now about 10% plus.”
Pravin Chaudhari, page 12 of the filed PDF · View the filing
New businesses contribution to sales: 10% plus, slightly higher than projects
p. 12
“I think that also should be 10% plus, but slightly on a higher side than projects.”
Pravin Chaudhari, page 12 of the filed PDF · View the filing
Powder and industrial liquid coating capacity utilization: 70% to 75%
p. 11
“We should be operating about 70% to 75% as of now.”
Pravin Chaudhari, page 11 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — 13% to 14% · FY27
stated as an aspiration by Pravin Chaudhari
p. 10
“So like historically, we have been talking about 13% to 14%. I think that is what the endeavor is.”
Pravin Chaudhari, page 10 of the filed PDF · View the filing
Decorative price increase — higher single digit
stated firmly by Pravin Chaudhari
p. 9
“After that, it is all 5% to 6%, 5% to 6%. So net-net, I would say we'll be higher single digit as far as price increase is concerned in decorative as of now.”
Pravin Chaudhari, page 9 of the filed PDF · View the filing
Further price increases
stated conditionally by Pravin Chaudhari
p. 16
“Now as far as price increase topic that you are concerned and inflation or deflation, I mean, if inflation continues, then obviously, our price increases are there, and we might take further price increase.”
Pravin Chaudhari, page 16 of the filed PDF · View the filing
Price cuts
stated conditionally by Pravin Chaudhari
p. 16
“Obviously, if there is a sustained stability we see with the deflation, then obviously, price will get corrected downward.”
Pravin Chaudhari, page 16 of the filed PDF · View the filing
Performance coating growth — double-digit
stated as an aspiration by Pravin Chaudhari
p. 11
“I think that's our endeavor to really grow double-digit as far as performance coating is concerned.”
Pravin Chaudhari, page 11 of the filed PDF · View the filing
Price increase sufficiency at crude of 100 — low teens price hikes sufficient
stated conditionally by Pravin Chaudhari
p. 16
“I think with 100, I think it should be okay.”
Pravin Chaudhari, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said economy segment free grammage has reportedly been withdrawn but data is mixed, and advertising spend in April was already committed before the crisis.
Answered by Pravin Chaudhari
Asked by Avnish Roy: Is competitive intensity from new players changing given cost inflation, e.g. reduced grammage or dealer incentives?
p. 8
“So as far as we understand from our sources that on economy, the free thing has been withdrawn, but I don't know.”
Pravin Chaudhari, page 8 of the filed PDF · View the filing
Auto grew in double digits while industrial overall grew in single digits; decorative volume-value gap was not significant as the company focused on profitable mix.
Answered by Pravin Chaudhari
Asked by Mihir Shah: What was the growth split between decorative and industrial, and volume/mix impact in decorative?
p. 9
“As far as auto is concerned, yes, auto did grow by -- in double-digit, but we also have very sizable presence in industrial, which grew by single-digits.”
Pravin Chaudhari, page 9 of the filed PDF · View the filing
Decorative price hikes were taken in stages starting late March; industrial/auto price increases are being negotiated with some lag but are effective retroactively.
Answered by Pravin Chaudhari
Asked by Mihir Shah: What price increases have been taken in decorative and how are B2B/industrial price negotiations progressing?
p. 9
“The first increase we took in month of March itself, about 25th March, we took the increase. And then followed by 10th April, followed by 21st April and now it is the 11th May.”
Pravin Chaudhari, page 9 of the filed PDF · View the filing
Management said they aim to pass on inflation via price hikes and rely on inventory cushion, though some impact cannot be ruled out.
Answered by Pravin Chaudhari
Asked by Rehan Saiyyed: What is EBITDA margin sensitivity to a 5-10% increase in input costs?
p. 10
“Our endeavor is to neutralize, though some impact cannot be ruled out.”
Pravin Chaudhari, page 10 of the filed PDF · View the filing
Management attributed it to improved mix in both industrial and decorative segments.
Answered by Pravin Chaudhari
Asked by Mrunmayee Jogalekar: Why was the sequential margin pressure in Q4 lower than historical Q4s?
p. 11
“One is in both industrial and decorative, of course, performance is better. And in decorative also mix-wise, we are far better than last quarter.”
Pravin Chaudhari, page 11 of the filed PDF · View the filing
Management said no impact has been seen so far.
Answered by Pravin Chaudhari
Asked by Mrunmayee Jogalekar: Has there been any volume impact from the recent price hikes?
p. 12
“As of now, frankly, there is no impact we have seen.”
Pravin Chaudhari, page 12 of the filed PDF · View the filing
Management said the last five months' trend showed improvement across verticals but cautioned that a prolonged geopolitical crisis could change the outlook.
Answered by Pravin Chaudhari
Asked by Amit Purohit: What is the outlook for industry growth for the full year given the recent uptick since November?
p. 12
“I think if that is the indication which was pre-war, that means there is a fundamental things are getting corrected or changed, I would say that's the, I would say, green shoots that I'm seeing.”
Pravin Chaudhari, page 12 of the filed PDF · View the filing
Management said incentives vary month to month and it's too early to draw conclusions from just one month of inflation.
Answered by Pravin Chaudhari
Asked by Pratik Gothi: Have dealer incentives been reduced now that cost inflation has returned?
p. 13
“I would say it's very difficult to comment on just 1 month of the inflation, what has happened.”
Pravin Chaudhari, page 13 of the filed PDF · View the filing
Management said they believe some raw material prices are already correcting and expect conditions to stabilize, though timing is hard to project.
Answered by Pravin Chaudhari
Asked by Tejash Shah: Does the 13-14% margin guidance assume raw material costs stay elevated or reverse in H2?
p. 14
“I think there is a strong, I would say, belief that things will change. I think we are seeing some signs.”
Pravin Chaudhari, page 14 of the filed PDF · View the filing
Management confirmed industrial/auto demand momentum continues.
Answered by Pravin Chaudhari
Asked by Avi Mehta: Has the demand momentum in auto/industrial sustained similarly to decorative?
p. 15
“Yes, it is building on.”
Pravin Chaudhari, page 15 of the filed PDF · View the filing
Management attributed it to fuel cost declines and ongoing fixed cost and spend efficiency optimization.
Answered by Pravin Chaudhari
Asked by Percy Panthaki: Why did other expenses drop 150 bps as a percentage of sales this quarter?
p. 17
“No, there is a fixed cost leverage -- optimization is also being done.”
Pravin Chaudhari, page 17 of the filed PDF · View the filing
Risks flagged
West Asia crisis leading to supply chain disruptions
p. 7
“Among risks, West Asia crisis leading to supply chain disruptions is one of the key risks that we see in this quarter, high commodity prices due to crude oil price surge and impact on downstream products, import cost surge due to rupee depreciation.”
Jason Gonsalves, page 7 of the filed PDF · View the filing
Significant surge in crude oil prices due to West Asia crisis
p. 4
“There has been a significant surge in crude oil prices, primarily because of the West Asia crisis.”
Jason Gonsalves, page 4 of the filed PDF · View the filing
Sharp rupee depreciation
p. 4
“There has been a sharp depreciation in the rupee.”
Jason Gonsalves, page 4 of the filed PDF · View the filing
Uncertainty from the West Asia crisis and supply chain disruption
p. 4
“The West Asia crisis has created a lot of uncertainty. There is a supply chain disruption, which has happened.”
Jason Gonsalves, page 4 of the filed PDF · View the filing
Uncertain demand visibility due to inflationary scenario
p. 7
“Considering the inflationary scenario, demand visibility remains more or less a wait and watch.”
Jason Gonsalves, page 7 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.