Kansai Nerolac Paints' Q1 FY 2025-26 Quarterly Results

Result Summary

• Kansai Nerolac Paints Ltd reported a 22.9% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 2.2%.
• Its expenses for the quarter were up by 16.6% QoQ and 3.2% YoY.
• The net profit increased 88.6% QoQ and decreased 4.1% YoY.
• The earnings per share (EPS) of Kansai Nerolac Paints Ltd stood at 2.7 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Kansai Nerolac Paints Ltd is a leading Indian paint company involved in the manufacturing and distribution of decorative paints, industrial coatings, and automotive finishes. The company is part of the Kansai Paint Company Limited, a global leader in the paint industry. Kansai Nerolac caters to both the industrial and consumer segments, offering a range of products including decorative paints for homes and buildings, as well as high-performance coatings for automotive and industrial applications. The company has been at the forefront of innovation in the paint industry, focusing on eco-friendly products and sustainable business practices. Kansai Nerolac has a significant presence in India and continues to expand its reach and product offerings to meet the diverse needs of its customers.

Revenue

In the first quarter of the fiscal year 2026 (Q1FY26), Kansai Nerolac Paints Ltd reported a total income of ₹2214.64 crores. This marks a significant quarter-over-quarter (QoQ) increase of 22.9% from ₹1801.92 crores in the fourth quarter of the fiscal year 2025 (Q4FY25). Year-over-year (YoY), the total income rose by 2.2% compared to ₹2166.89 crores in the first quarter of the fiscal year 2025 (Q1FY25). The increase in total income QoQ may reflect changes in market conditions, demand, or pricing strategies that have affected the company's revenue generation positively within the quarter.

Profitability

Kansai Nerolac Paints Ltd's profitability in Q1FY26 demonstrates a significant QoQ improvement. The company recorded a profit before tax of ₹295.46 crores, an 88.7% increase from ₹156.56 crores in Q4FY25. However, this is a 4.1% decrease YoY from ₹308.09 crores in Q1FY25. The profit after tax stood at ₹215.59 crores for Q1FY26, showing an 88.6% QoQ rise from ₹114.29 crores, yet a 4.1% YoY decline from ₹224.87 crores. The earnings per share (EPS) for Q1FY26 was ₹2.70, marking a 92.9% increase QoQ from ₹1.40, but a 6.9% decrease YoY from ₹2.90. These figures indicate shifts in the company's profitability dynamics over different periods.

Operating Metrics

The total expenses for Kansai Nerolac Paints Ltd in Q1FY26 were ₹1919.18 crores, which represents a 16.6% increase QoQ from ₹1645.36 crores in Q4FY25 and a 3.2% increase YoY from ₹1858.80 crores in Q1FY25. The tax expense for the quarter was ₹79.87 crores, showing an 89.0% QoQ increase from ₹42.27 crores, and a 4.0% decrease YoY from ₹83.22 crores. These operating metrics provide insights into the company's cost management and tax obligations during the period. The increases in expenses and tax obligations QoQ could be indicative of operational changes or increased business activities in the quarter.