Kansai Nerolac Paints Ltd (KNPL) announced its Q3 FY26 results, reporting a 3.5% increase in net revenue to ₹1907.35 Crores. EBITDA grew by 0.2% to ₹247.28 Crores. The results were impacted by the adoption of new labor codes, leading to a ₹44.72 Crores exceptional item. Industrial coatings performed strongly, while decorative demand remained subdued.
Financial Performance Overview
Kansai Nerolac Paints Limited (KNPL) announced its unaudited results for Q3 FY26. Net revenue for the quarter stood at ₹1907.35 Crores, a 3.5% increase compared to the same quarter of the previous year. EBITDA reached ₹247.28 Crores, representing a modest growth of 0.2%.
Impact of New Labour Codes
The company’s financial results were affected by the implementation of the new labor codes, resulting in an increase in gratuity and leave liabilities. This led to an exceptional item of ₹44.72 Crores for both the quarter and the nine-month period.
Segment Performance
Industrial coatings demonstrated strong growth during the quarter, driven by the automotive sector. Decorative coatings experienced subdued demand, although company initiatives in Projects, Distribution, water proofing, and Construction Chemicals helped mitigate the impact. The company anticipates continued growth momentum in Automotive and Performance Coatings, with a gradual recovery expected in the Decorative segment.
Nine-Month Performance
For the nine-month period, net revenue reached ₹5865.79 Crores, a 1.9% increase. EBITDA stood at ₹771.10 Crores. The Profit after tax was reported as ₹498.99 Crores.
Outlook
The domestic paint industry is estimated at around ₹77500 crores as of March 2025. Growth in infrastructure, core sector, automobile and real estate is likely to have a positive effect on the demand for the paints industry.
Source: BSE
