Kansai Nerolac Q1 results: Net profit declines 4% to ₹221 crore in Q1; EBITDA falls 8%

Kansai Nerolac, the country's lading paint maker, on Monday, August 4, reported a consolidated net profit of ₹221 crore in the first quarter of current financial year (Q1FY26), marking a decline of 4% from ₹231 crore in the same period last year.

The company's revenue from operations in Q1, however, advanced 1.4% to ₹2,162 crore from ₹2,133 crore in the year-ago period.

Kansai Nerolac's reported weak operational performance as its operating profit also known as earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 8% annually to ₹303 crore from ₹329 crore in the corresponding period last year.

Its EBITDA margin contracted by 140 basis points to 14.03%.

“During the quarter demand for Decorative showed signs of revival though an early monsoon impacted during the later part of the quarter. KNP decorative performance was affected due to the disturbance in April which impacted key markets in the North," said Pravin Chaudhari, Managing Director, Kansai Nerolac Paints.

“In Automotive, demand for KNP continued to be better than the market, on the back of various initiatives. Performance coatings registered strong growth. Raw material prices were benign. Forex remained volatile. The uncertainty in the environment due to geo-political factors continued and we remain watchful. Looking ahead, we anticipate an improvement in decorative demand driven by a favourable monsoon and the early onset of Diwali. In the industrial segment, we expect our market leading growth trajectory to continue,” Chaudhari added.

The size of domestic paint industry is estimated at around ₹77,500 crore as of March 2025. The good growth in infrastructure, core sector as well as automobile and real estate is likely to have a positive effect on the overall demand of paint for the industry in the long run, Kansai Nerolac said.

Kansai Nerolac shares ended 2.38% lower at ₹243.60 ahead of its earnings announcement.