Kansai Nerolac Paints Limited announced its Q2 FY27 financial results, reporting a 18.9% increase in standalone net revenue to ₹XXXX crore and a 4.9% rise in PBDIT. Consolidated net revenue grew 18.6% for the quarter. The company highlighted strong performance across decorative and industrial segments, driven by new product launches, network expansion, and strategic initiatives. Management discussed market conditions, risks, and outlook, anticipating continued growth in H2 FY27.
Kansai Nerolac Paints Reports Strong Q2 FY27 Results
Kansai Nerolac Paints Limited has released its financial results for the second quarter and the first half of fiscal year 2027 (Q2 FY27 and H1 FY27). The company reported a significant 18.9% year-on-year increase in standalone net revenue for the quarter, reaching ₹XXXX crore. Profit Before Depreciation, Interest, and Taxes (PBDIT) saw a rise of 4.9%, and Profit Before Tax (PBT) increased by 4.3%.
On a consolidated basis, Kansai Nerolac Paints also demonstrated robust growth. Net revenue for the quarter was up by 18.6%, with PBDIT increasing by 4.1% and PBT by 3.6%. For the first half of FY27, consolidated net revenue grew by 14%, PBDIT by 6.6%, and PBT by 4.9%.
Business Performance and Strategy
The company’s management discussed the strong performance across various business segments. The decorative segment witnessed mid-to-high single-digit growth aided by services, with expansion in retail touchpoints like NXTGEN stores and shop-in-shop outlets. The projects and institutional business recorded double-digit growth, extending its reach to over 80 cities.
In the industrial segment, performance coatings saw growth driven by premiumization, new technologies, and dealer network expansion. The auto refinish business experienced good growth despite a mix deterioration, while new products in industrial coatings focused on enhanced finishes and sustainability. The company highlighted several new product launches, including Excel Everlast 20 and Excel Total Floor Coat for decorative applications, and advanced coating solutions for industrial uses.
Market Outlook and Risks
Looking ahead, Kansai Nerolac Paints noted healthy demand conditions across construction, mobility, and broader domestic markets. Automotive demand is expected to remain buoyant. However, risks include continued geopolitical tensions in West Asia impacting supply chains and market uncertainty, alongside sustained high crude oil and derivative prices coupled with currency volatility.
The company aims to achieve sustainable EBITDA margins of 13%-14% by Q4 FY27. Management emphasized a focused approach on growing the decorative business, managing product mix, and leveraging technological advancements in both decorative and industrial coatings to drive future growth.
Source: BSE
