Kansai Nerolac Paints posts nearly 6% YoY rise in Q1 PAT

Raw material costs added up to Rs 1,543.98 crore (up 11.7% YoY) while operating expenses aggregated to Rs 501.24 crore (up 5.1% YoY) during the period under review.

Profit before interest, depriciation and taxes improved by 8.3% to Rs 328.37 crore in Q1 FY27 from Rs 303.15 crore in Q1 FY26.

The company has posted a pre-tax profit of Rs 312.46 crore for the June'26 quarter, which is higher 5.8% as compared with the figure of Rs 295.46 crore in the same period last year.

Pravin Chaudhari, managing director, Kansai Nerolac Paints, said: During the quarter, demand in both Decorative and Industrial has been healthy despite the prevailing geo-political situation. Demand was further helped due to late arrival of monsoon.

In Decorative, demand for KNP was good. In Automotive, demand for KNP continued to be better than the market, on the back of various initiatives. Performance coatings registered strong growth.

The West Asia geo-political situation caused supply chain disruption as well as a significant increase in raw material prices, coupled with uncertainty of supply starting from March. The rupee depreciated sharply against the dollar. While the situation has improved from the middle of the first quarter, uncertainty in the environment due to geo-political factors prevails, and we remain watchful. KNP has taken price increases in this period to partly offset the impact of severe inflation.

Looking ahead, we anticipate that demand in both market segments will continue to remain strong despite an erratic monsoon and prevailing geo-political situation. Additionally, Diwali being later this year, should add a fillip to the festive demand.

Kansai Nerolac Paints is one of the leading paint companies in India and is the leader in Industrial paints. The company has nine strategically located manufacturing units all over India and a strong dealer network across the country. The company manufactures a diversified range of products ranging from decorative paints coatings for homes, offices, hospitals, and hotels to sophisticated industrial coatings for most of the industries.

The scrip fell 2.26% to end at Rs 199.35 on the BSE today.

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