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Informist, Monday, Aug. 3, 2026

By Ayush Jaiswal

MUMBAI – Kansai Nerolac Paints Ltd. is expected to report a strong growth in its standalone net sales for the June quarter due to implementation of price hikes in line with broader industry trend, according to brokerages tracking the company. However, the company's net profit is expected to decline slightly on year as the increase in input costs was much higher than the price hikes.

Kansai Nerolac's net profit for the June quarter is expected to decline slightly to INR 2.28 billion from INR 2.31 billion in the year-ago quarter, according to the average of estimates from seven brokerages. The highest estimate for the company's net profit is INR 2.45 billion from Anand Rathi Share and Stock Brokers Ltd. and the lowest is INR 1.90 billion from HDFC Securities Ltd.

The company's revenue is expected to grow to INR 23.47 billion for the June quarter, up 12% on year and up 25% on quarter, according to the estimates. The highest estimate for the company's net sales is INR 24.48 billion from Systematix Shares and Stocks (India) Ltd. and the lowest is INR 22.19 billion from Kotak Securities Ltd.

The company's revenue growth will be driven by the cumulative price hikes of 10%-14% that it has implemented between March and June. Paint manufacturers have hiked prices after the sharp rise in crude oil prices and the depreciation of the rupee. While the company's decorative segment volumes are likely to decline slightly on year for the June quarter, its prices for this segment will increase around 5% on year, brokerages said. The company's industrial segment is expected to grow 9% on year.

The sharp escalation in prices of crude oil-linked raw materials, which account for around 40% of the overall raw material basket of the company, is likely to weigh down the company's profit for the quarter.

The paint industry is expected to report a strong quarter driven by price hikes implemented across the industry, stable demand for decorative paints, and the continued growth in industrial coatings, brokerages said. The improvement in realisation due to rationalisation of dealer schemes and promotional discounts will also support the industry's revenue growth. The industry's volume is likely to grow 9-10% on year on a low base, favourable weather, and up-stocking by dealers, Elara Securities said. The decorative paint industry is likely to grow 15-16% on year in the quarter, the brokerage added.

Kansai Nerolac's earnings before interest, tax, depreciation, and amortisation are expected to be flat at INR 3.16 billion from INR 3.12 billion in the year-ago quarter, according to average of five estimates. The highest estimate for the company's EBITDA is INR 3.39 from Prabhudas Lilladher Pvt. Ltd. and the lowest is INR 2.90 billion from HDFC Securities.

The company's EBITDA margin is expected to contract by 140 basis points to 13.5% for the June quarter from 14.9% in the year-ago quarter, Kotak Securities said.

Kansai Nerolac is known for decorative wall paints, industrial coatings, and automotive finishes. The company will announce its June quarter earnings Monday. Investors will watch for the management's commentary on demand, input costs, dealer addition, rebating, discounting, segmental growth, and growth in 'Paint+' premium decorative products.    

At 1024 IST, shares of Kansai Nerolac traded at INR 203.48 apiece on the National Stock Exchange, up more than 3% over Friday. The shares are down 4% since the company detailed its March quarter earnings on May 6.

Of the nine research reports on the company available with Informist, six have a "buy" recommendation on the stock with an average target price of INR 254.67 per share, almost 209% higher than the current market price. One brokerage has a "hold" call with a target price of INR 215 per share and two brokerages have a "sell" call with an average target price of INR 233.5 per share.

Following are the Apr-Jun earnings estimates, in INR billion, for Kansai Nerolac Paints from seven brokerages, in descending order by the net profit estimate:

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Edited by Pankaj Aher

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