Kansai Nerolac Paints saw its shares fall by 1.56% after reporting a sharp drop in profit for the January-March quarter of FY25. The company’s standalone net profit fell by 76.54% to ₹123.49 crore in Q4 FY25, compared to ₹526.46 crore in Q3 FY25. Its revenue also dropped by 5.52% to ₹1,740.43 crore during the same period. Pre-tax profit (PBT) declined by 76.83% to ₹163.83 crore.
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However, compared to the same quarter last year, Kansai Nerolac showed some improvement. The net profit grew by 21.61%, revenue increased by 4.73%, and PBT rose by 14.36%. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q4 stood at ₹177.8 crore, showing a small year-on-year dip of 0.7%.
Managing Director Pravin Chaudhari said the company saw steady growth in decorative products like Paint+, construction chemicals, wood finishes, and project paints. He mentioned that demand in the decorative segment is slowly recovering, even though people are still spending less on non-essential items. Automotive paint demand remained strong, and performance coatings also did well, thanks to a good order pipeline.
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He also added that raw material costs were stable, but foreign exchange (forex) markets remained unstable. He believes that a good monsoon season ahead will help boost the paint industry.
Looking ahead, Kansai Nerolac expects steady growth in the Indian paint industry, which is estimated to be worth around ₹75,000 crore as of March 2024. Growth in sectors like infrastructure, real estate, and automobiles is expected to drive long-term demand for paints.
The company’s board has recommended a total dividend of ₹3.75 per share, which includes a special dividend of ₹1.25 per share — the same as last year.
Kansai Nerolac is one of India’s top paint companies and leads in industrial paints. It has eight factories across the country and a strong dealer network. The company makes a wide range of products, including decorative paints for homes and buildings, and industrial coatings for various industries.
