Kansai Nerolac Q4 profit up 4%; EBITDA jumps 31% on strong margin expansion; declares dividend

Kansai Nerolac Paints Ltd on Wednesday (May 6) reported a 3.5% year-on-year increase in consolidated net profit for the fourth quarter at ₹112.3 crore, compared with ₹108.5 crore in the same period last year.

The company reported profit before tax (PBT) before exceptional items of ₹184.7 crore for the fourth quarter, a 12.8% increase over the same period last year. Revenue for the quarter rose 7.5% to ₹1,953.7 crore from ₹1,816.7 crore a year earlier.

EBITDA surged 30.6% to ₹216.5 crore in Q4, compared with ₹165.7 crore in the corresponding quarter last year. The EBITDA margin improved to 11.08% from 9.12% in the same period last year.

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For the full year, net revenue stood at ₹7,739.2 crore, reflecting a 3.2% growth compared with the previous year. EBITDA was ₹986.2 crore, up 1.2% year-on-year. Profit before tax before exceptional items for the year was ₹898.9 crore, a decline of 0.9% compared with the same period last year.

The company’s board has recommended a total dividend of 250% (₹2.50 per share) for the financial year ended March 31, 2026, compared with a total dividend of 375% (₹3.75 per share) in the previous year, which included a special dividend of 125% (₹1.25 per share).

Pravin Chaudhari, Managing Director, Kansai Nerolac Paints Ltd, said, "During the quarter, the revival in demand seen in Q3 continued in decorative. Growth drivers of new products, construction chemicals, wood finishes and projects continued to do well.”

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“The demand in the industrial was robust, led by automotive. KNPL continued to be better than the market, based on various initiatives. Growth in performance coatings was also strong, based on a strong order pipeline. During the quarter, raw material costs, which were benign in Jan and Feb, rose sharply due to the West Asia crisis along with the depreciation of the rupee,” he added.

Further, the company has announced price increases to partly offset the impact of inflation. It has also approached industrial customers with price increases. “Going forward, while long-term demand looks intact, how cost drivers pan out will need to be watched in the light of how the current geo-political situation pans out," Chaudhuri said.

Shares of Kansai Nerolac Paints Ltd ended at ₹201.95, up by ₹7.60, or 3.91%, on the BSE today, May 6.

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