Kansai Nerolac Paints (500165) Q2 24/25 earnings summary
Event summary combining transcript, slides, and related documents.
Q2 24/25 earnings summary
8 Jul, 2026Executive summary
Maintained a diversified portfolio with strong presence in both decorative and industrial paints, leveraging technology, premiumization, and sustainability initiatives.
Decorative segment saw premium products outperform, while economy products like putty and distemper experienced degrowth; new product launches contributed over 10% to segment sales.
Industrial segment, especially automotive and performance coatings, gained market share and saw robust growth.
Demand in decorative was subdued due to extended monsoons, while project business and new segments such as wood finishes and construction chemicals showed double-digit growth but remain under-indexed.
Q2 FY25 net revenue was ₹1,864 Cr, up 1% year-over-year; H1 revenue was flat at ₹3,914 Cr.
Financial highlights
Standalone Q2 net revenue grew 1.0% year-over-year to ₹18,638 million; EBITDA declined by 20.3% YoY to ₹215 Cr; PAT fell 27.6% YoY to ₹130 Cr.
Consolidated Q2 net revenue declined 0.3% YoY to ₹19,514 million; PBDIT down 22.4%, PAT down 31.7%.
Standalone H1 net revenue was flat at ₹39,141 million; PBDIT down 9.0%, PAT down 59.8% due to an exceptional item in H1 FY23-24.
Standalone gross margin for Q2: 37.4%; standalone net profit margin for Q2: 7.0%.
EPS (Q2, standalone): ₹1.61; (Q2, consolidated): ₹1.52.
Outlook and guidance
Management expects demand to improve in H2, especially in Decorative, supported by festive and marriage season, favorable monsoon, and rural demand trending upward.
Automotive and Performance Coatings are projected to maintain strong momentum due to robust order pipeline and sector growth.
Raw material prices, initially inflationary, are now softening, which may support margins going forward.
Maintain EBITDA margin guidance in the 13%-14% range for the full year, likely at the lower end due to subdued top-line growth.
Anticipate market growth to align with GDP in the next year or two, aiming to outpace market growth at the segment level.
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