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In summary
Kansai Nerolac Paints reported Q4 FY26 standalone net revenue of ₹ 1,873.4 crore, up 7.6% year on year, with EBITDA rising 21% to ₹ 215.1 crore and EBITDA margin improving to 11.48% from 10.28% in Q4 FY25.
- Q4 FY26 consolidated revenue: ₹ 1,953.71 crore, up 7.54% YoY
- Q4 FY26 consolidated net profit: ₹ 112.27 crore, up 3.51% YoY
- Q4 FY26 EBITDA: ₹ 215.1 crore, up 21% YoY
- Q4 FY26 EBITDA margin: 11.48% standalone, expanded 196 bps YoY on consolidated basis
- FY26 full year net revenue: ₹ 7,739.2 crore standalone, up 3.2% YoY
- FY26 final dividend: ₹ 2.50 per share (250% on face value of ₹ 1)
- Share price reaction: stock surged 10.62% to ₹ 223 on May 7, 2026
- FY27 EBITDA margin guidance: 13 to 14%
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What are Kansai Nerolac Paints Q4 FY26 results? Key highlights at a glance
Why is operating profit margin important?
Kansai Nerolac Paints Limited, a subsidiary of Japan's Kansai Paint Co. Limited which holds a 74.96% stake, announced its audited Q4 FY26 and full year FY26 results on May 6, 2026, after a board meeting. The results were better than most analyst estimates on operating margins, triggering a sharp stock price reaction the following session.
Key highlights at a glance:
| Metric | Q4 FY26 | Q4 FY25 | Change |
|---|---|---|---|
| Consolidated revenue | ₹ 1,953.71 crore | ₹ 1,816.65 crore | Up 7.54% YoY |
| Standalone net revenue | ₹ 1,873.4 crore | Not disclosed | Up 7.6% YoY |
| Consolidated net profit | ₹ 112.27 crore | ₹ 108.46 crore | Up 3.51% YoY |
| EBITDA | ₹ 215.1 crore | ₹ 177.8 crore | Up 21% YoY |
| EBITDA margin (standalone) | 11.48% | 10.28% | Up 120 bps YoY |
| EBITDA margin (consolidated) | 11.1% | 9.14% | Up 196 bps YoY |
| Profit before tax | ₹ 158.44 crore | ₹ 143.52 crore | Up 10.39% YoY |
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Kansai Nerolac Q4 FY26 revenue: ₹ 1,953.71 crore with 7.54% YoY growth
Kansai Nerolac reported consolidated revenue from operations of ₹ 1,953.71 crore for Q4 FY26, up 7.54% from ₹ 1,816.65 crore in Q4 FY25. On a standalone basis, net revenue stood at ₹ 1,873.4 crore, reflecting 7.6% growth year on year.
The revenue growth was driven by healthy demand across both the decorative paints and industrial coatings segments. The company implemented four price increases between March and May 2026, leading to a high single-digit net price hike in the decorative segment. This helped offset raw material inflation arising from the West Asia crisis and rupee depreciation during the quarter.
On a sequential basis, consolidated revenue declined marginally by 1.43% from ₹ 1,981.99 crore in Q3 FY26, reflecting some demand softness in the final weeks of March 2026.
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KANSAINER Q4 FY26 net profit: ₹ 112.27 crore, up 3.51% year on year
Kansai Nerolac reported a consolidated net profit of ₹ 112.27 crore for Q4 FY26, up 3.51% from ₹ 108.46 crore in Q4 FY25. Profit before tax stood at ₹ 158.44 crore, up 10.39% year on year from ₹ 143.52 crore.
On a sequential basis, net profit declined 7.49% from ₹ 121.37 crore in Q3 FY26, reflecting a combination of higher raw material costs in March 2026 and exceptional items on the standalone books.
Adjusted net profit, which excludes exceptional items, rose 20.7% year on year to ₹ 130.7 crore on a consolidated basis, providing a cleaner picture of underlying operational performance improvement.
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Kansai Nerolac EBITDA and operating margin performance in Q4 FY26
EBITDA performance was the standout metric in Q4 FY26, beating analyst expectations and driving the sharp share price reaction post results.
Kansai Nerolac reported EBITDA of ₹ 215.1 crore for Q4 FY26, up 21% year on year from ₹ 177.8 crore in Q4 FY25. On a consolidated basis, EBITDA rose 30.6% to ₹ 216.5 crore.
What drove margin expansion?
- Commodity prices were lower in January and February 2026, providing a tailwind in the early part of the quarter
- Lower-cost inventory benefits materialised in March 2026
- Gross margins improved by 20 basis points year on year
- Operating leverage from revenue growth supported fixed cost absorption
Better product mix, including growth in higher-margin segments like waterproofing and construction chemicals
EBITDA margin expanded to 11.48% on a standalone basis in Q4 FY26, up from 10.28% in Q4 FY25. On a consolidated basis, EBITDA margin improved by 196 basis points year on year to 11.1%.
FY27 margin guidance
Management maintained its EBITDA margin guidance of 13 to 14% for FY27, signalling continued confidence in margin recovery despite near-term raw material headwinds. The company noted that price hikes may not be necessary if crude oil prices stabilise around $100 per barrel.
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Kansai Nerolac segment performance: decorative vs industrial paints in Q4 FY26
Decorative paints
The decorative paints segment witnessed gradual improvement in demand trends during Q4 FY26. Volume growth was supported by channel stocking ahead of price hikes and improving underlying consumer demand. New growth engines including waterproofing, construction chemicals, and the projects segment each contributed over 10% of sales during the quarter.
The company implemented a high single-digit net price hike in the decorative segment through four rounds of pricing action between March and May 2026.
Industrial coatings
The industrial segment continued to benefit from recovery in the automobile sector, which is the primary driver of Kansai Nerolac's industrial coatings business. The company holds over 40% market share in India's industrial coatings segment, making it the dominant leader in this category.
General industrial paints also benefited from infrastructure-linked demand. The recovery in automotive production volumes provided a meaningful tailwind to the industrial segment, which typically carries higher margins than decorative paints for Kansai Nerolac.
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Kansai Nerolac FY26 full-year results
For the full financial year ended March 31, 2026, Kansai Nerolac reported the following:
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Standalone net revenue | ₹ 7,739.2 crore | ₹ 7,499 crore (approx) | Up 3.2% YoY |
| Consolidated revenue | ₹ 8,051.91 crore | Not disclosed | Up YoY |
| Solvency ratio | 2.35 | 2.11 | Improved |
The full year performance reflects a period of transition for the paint industry, with competitive intensity from new entrants and raw material volatility weighing on revenue growth in the first half of FY26, followed by a stronger recovery in the second half.
Exceptional items of ₹ 60.70 crore on a standalone basis impacted full-year standalone profitability and should be noted when comparing standalone versus consolidated full-year profit figures.
Kansai Nerolac dividend FY26: including special dividend details
The Board of Directors of Kansai Nerolac recommended a final dividend of ₹ 2.50 per share for FY26, representing 250% on the face value of ₹ 1 per share.
This compares to a total dividend of ₹ 3.75 per share in FY25, which included a regular dividend of ₹ 2.50 per share and a special dividend of ₹ 1.25 per share (125% special component).
| Year | Total dividend per share | Components |
|---|---|---|
| FY25 | ₹ 3.75 | ₹ 2.50 regular + ₹ 1.25 special |
| FY26 | ₹ 2.50 | ₹ 2.50 final dividend only, no special dividend |
The FY26 dividend is lower than FY25 in absolute terms because FY25 included a special one-time component. The regular dividend quantum remains unchanged at ₹ 2.50 per share.
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Kansai Nerolac share price reaction after Q4 FY26 results: what happened?
Shares of Kansai Nerolac Paints surged sharply in the trading session following the Q4 FY26 results announcement on May 6, 2026.
On May 7, 2026, the stock made a day high of ₹ 223.55, up 10.88% from its previous close of ₹ 201.60. The stock ultimately settled at ₹ 223, registering a gain of 10.62% for the session.
Trading volumes were significantly elevated. Approximately 0.40 million shares changed hands, compared to the two-week average volume of 0.019 million shares, reflecting strong institutional and retail interest post results.
The sharp price reaction was driven by the EBITDA margin beat. The market had expected an EBITDA margin of approximately 8.8% based on analyst consensus. The actual margin of 11.1% (consolidated) significantly exceeded expectations, triggering a re-rating of near-term earnings estimates.
Despite the post-results surge, the stock had delivered a negative return of 16% over the 12 months prior to the results announcement, reflecting the challenging operating environment in the paint sector during FY26.
The securities quoted are for example purposes only and not a recommendation.
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Kansai Nerolac vs peers: Asian Paints and Berger Paints Q4 FY26 comparison
Sector analysis
The Q4 FY26 results season brought improved performance across India's listed paint companies, with all three major players reporting better-than-expected results driven by volume recovery, price hikes, and easing raw material costs.
| Metric | Kansai Nerolac | Asian Paints | Berger Paints |
|---|---|---|---|
| Q4 FY26 revenue growth YoY | 7.54% | Approximately 8 to 10% | Approximately 6.7% |
| EBITDA margin | 11.1% (consolidated) | Higher (industry leader in margins) | Mid-teens |
| Industrial coatings exposure | High (over 40% market share) | Low (primarily decorative) | Low (primarily decorative) |
| ROE | 10.06% | 26.01% | 21.37% |
| ROCE | 14.87% | Higher | Higher |
| Volume growth (decorative) | Positive | 8 to 10% guided for FY27 | 11.8% standalone Q4 FY26 |
The combined consolidated revenue growth of all three major listed paint companies in Q4 FY26 came in at approximately 11% year on year, the first instance of double-digit growth in 12 quarters, according to Systematix Research.
Where Kansai Nerolac stands differently from peers
Kansai Nerolac's business mix is structurally different from Asian Paints and Berger Paints. The company is the dominant leader in industrial coatings with over 40% market share, and holds approximately 15% market share in decorative paints, making it the third largest player in that segment.
This mix means Kansai Nerolac benefits more directly from automobile sector recovery than its primarily decorative peers. However, it also means the company's ROE and ROCE lag behind peers who have higher exposure to the higher-margin premium decorative paints segment.
Analysts at ICICI Securities viewed FY27 as a potential key turnaround year for both the paint industry and Kansai Nerolac specifically.
Note: The information provided is based on publicly available data and analyst reports for Q4 FY26 and is for informational purposes only. It should not be considered investment or financial advice.
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Conclusion
Kansai Nerolac Paints delivered a stronger-than-expected Q4 FY26 performance, with EBITDA growth of 21% and margin expansion of 196 basis points year on year being the standout metrics. Revenue growth of 7.54% on a consolidated basis reflected improving demand across both decorative and industrial segments. The final dividend of ₹ 2.50 per share and management's FY27 EBITDA margin guidance of 13 to 14% provide context for the year ahead. The post-results share price surge of over 10% reflected the degree to which the market had underestimated the margin recovery. Near-term risks remain around raw material costs and rupee volatility, but the operating trajectory entering FY27 is more constructive than it was a year ago.
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What is Kansai Nerolac Paints Q4 FY26 revenue?
Kansai Nerolac reported consolidated revenue from operations of ₹ 1,953.71 crore for Q4 FY26, up 7.54% year on year from ₹ 1,816.65 crore in Q4 FY25. On a standalone basis, net revenue was ₹ 1,873.4 crore, reflecting 7.6% growth year on year. Revenue growth was driven by demand recovery in both decorative and industrial segments alongside price hikes implemented between March and May 2026.
How much dividend did Kansai Nerolac declare for FY26?
Kansai Nerolac declared a final dividend of ₹ 2.50 per share for FY26, representing 250% on the face value of ₹ 1 per share. This compares to a total dividend of ₹ 3.75 per share in FY25, which included a special dividend of ₹ 1.25 per share. The FY26 dividend does not include any special component, making it lower in absolute terms than FY25.
What was Kansai Nerolac Q4 FY26 net profit YoY growth?
Kansai Nerolac reported a consolidated net profit of ₹ 112.27 crore for Q4 FY26, up 3.51% year on year from ₹ 108.46 crore in Q4 FY25. Adjusted net profit, excluding exceptional items, rose 20.7% year on year to ₹ 130.7 crore on a consolidated basis. On a sequential basis, net profit declined 7.49% from Q3 FY26 levels.
What is Kansai Nerolac EBITDA margin target for FY26?
Kansai Nerolac management maintained its EBITDA margin guidance of 13 to 14% for FY27. In Q4 FY26, the company reported EBITDA margin of 11.48% on a standalone basis and 11.1% on a consolidated basis, both representing significant improvement over the prior year. The gap between current margins and the guidance target reflects the expected benefit of price hikes, better mix, and operating leverage in FY27.
How did Kansai Nerolac industrial segment perform in Q4 FY26?
The industrial coatings segment benefited from recovery in the automobile sector during Q4 FY26, which is the primary driver of Kansai Nerolac's industrial business. The company holds over 40% market share in India's industrial coatings segment. General industrial paints also saw demand support from infrastructure-linked activity. The industrial segment recovery was a meaningful contributor to both revenue growth and margin improvement in the quarter.
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