KANSAINER
Micro CapKansai Nerolac Paints Limited
Industrials
Kansai Nerolac Paints Limited is an Indian paint manufacturer with a century-old legacy, strong R&D, and strategic technology partnerships, particularly in the industrial segment. It holds the position of the second most recognized brand nationally, focusing on decorative, industrial, and high-performance coatings.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is supportive, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 45/100Rev +8% YoY · PAT +8% YoY · margin expansion
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,954 Cr | +7.5% | -1.4% |
| EBITDA | ₹216 Cr | +30.1% | -10.0% |
| Operating margin | 11.0% | +200 bps | -100 bps |
| PAT | ₹110 Cr | +7.8% | -6.0% |
| PAT margin | 5.6% | +2 bps | -27 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY26 standalone revenue grew 7.6% with PBDIT up 21%; consolidated revenue rose 7.5% with PBDIT up 30.6%. Full year growth was modest, but management highlights improved product mix and profitability amidst cost inflation.
The company delivered strong Q4 profitability growth, driven by an improved product mix in both decorative and industrial segments. Management's focus on profitable growth over market share at any cost, coupled with timely price hikes, appears to be mitigating raw material inflation and competitive pressures. The 70-75% industrial capacity utilization provides headroom for future growth.
New Product Launches
Introduced Excel Sheen, Excel Everlast 14/20, Beauty Gold Washable Plus, Perma No Heat, Soldier Rain Raksha in decorative, and energy-efficient systems in industrial.
New Businesses & Projects
Robust growth in new businesses and projects, with projects expanding to more towns and registering high double-digit growth.
Influencer Programs
Paint as a service in 250+ cities, Illuminati (architect/designer program) in 45+ cities, and secondary program covering 1.2 lakh painters.
Specialized Industrial Products
Thrust on increasing saliency of specialized products in passenger vehicles to increase penetration into each vehicle produced.
Industrial Capacity Headroom
Powder and industrial liquid coating capacity is sufficient, operating at about 70% to 75% utilization.
Automotive Demand
Demand in automotive has continued to be healthy, supported by new models and SUVs.
Government Infrastructure Focus
Continued focus of the government on infrastructure, with RBI expecting sustained construction activity momentum.
2 & 3-Wheeler Segment Growth
High double-digit growth witnessed, supported by low interest rates and easy financing options.
Commercial Vehicle & Tractor Demand
Double-digit demand supported by a strong harvest season.
Crude Oil Price Surge
Significant surge in crude oil prices primarily due to the West Asia crisis, leading to high commodity prices.
Rupee Depreciation
Sharp depreciation in the rupee, causing import cost surge.
Supply Chain Disruption
West Asia crisis has created a lot of uncertainty and supply chain disruption.
Geopolitical Instability
West Asia crisis leading to supply chain disruptions is one of the key risks.
Commodity Price Volatility
High commodity prices due to crude oil price surge and impact on downstream products.
Currency Depreciation
Import cost surge due to rupee depreciation.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is relevant for assessing overall business performance and seasonal trends in the paint industry. QoQ is also crucial to evaluate the immediate impact of recent raw material inflation, price hikes, and sequential improvements in product mix and profitability.
Standalone Revenue Growth (Q4 FY26)
Revenue growth is 7.6%.
Consolidated Revenue Growth (Q4 FY26)
Revenue was up by 7.5%.
Standalone PBDIT Growth (Q4 FY26)
PBDIT was up 21%.
Consolidated PBDIT Growth (Q4 FY26)
PBDIT was up by 30.6%.
EBITDA Margin Target
The endeavor is to achieve 13% to 14% EBITDA margin for FY27, aiming for the higher end.
Profitable Growth Strategy
Focus is on profitable growth with good margins in decorative, deploying resources carefully rather than a 'mad rush of market share at any cost'.
Demand Outlook
Demand visibility remains 'wait and watch' considering the inflationary scenario, but recent trends suggest a good year if geopolitical issues resolve.
Price Hike Strategy
Price increases are being taken to pass on inflation; decorative saw multiple hikes (higher single-digit), and auto price increases have been granted, effective from a certain date.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margin | In the 13-14% range for the year. | Sustaining 13-14% margin amidst ongoing raw material inflation and competitive intensity. |
| Raw Material Price Stability | Significant surge due to crude oil and rupee depreciation. | Stabilization or correction of crude oil and other raw material prices, as management believes 'things will change'. |
| Volume Growth Post Price Hikes | No impact on volumes seen so far after multiple price hikes. | Any future impact of price increases on decorative and industrial volumes, especially if inflation persists. |
| Performance Coating Growth | Liquid segment witnessed strong growth, channel sales very strong. | Continued double-digit growth in performance coating to leverage existing industrial capacity (70-75% utilization). |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
48Neutrallabel neutral
Technical chart
KANSAINERweekly · 5Y-22.7%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 46.
- SMA20 roughly flat — short-term momentum stalled.
- RSI(14) at 46 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 21% off 52W high · 33% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 3.0%.
- Piotroski is strong at 8/9.
- Balance sheet contributes 14/15 to the score.
Main drags
- Fair-value margin of safety is negative at -138.0%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 4/30; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 82nd percentile of the scored universe and 80th percentile within Industrials. Main check: results consistency is weak at 53/100.
High Trust Lite: Promoter holding is 75%. Key concern: 3 recent quarters had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 80th pctile, median 68 · Micro: 72nd pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 75%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 2.9%.
- ▸11 years of positive FCF.
Trust risks
- ▸3 recent quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 26.80
- P/B
- 2.54
- EV/EBITDA
- 14.41
- Market Cap
- 17037.00Cr
Profitability
- ROE
- 9.67%
- ROCE
- 13.00%
- ROA
- 6.61%
- Dividend Y
- 1.19%
Growth (CAGR)
- Revenue 5Y
- 10.00%
- EPS 5Y
- 4.00%
- Revenue 3Y
- 2.00%
- EPS 3Y
- 11.00%
Balance Sheet
- Debt/Equity
- 0.05
- Interest Coverage
- 30.47×
- Altman Z
- 7.76
- Book Value
- 83.00
Cash Flow
- FCF Yield
- 3.00%
- FCF Positive Y
- 11/5
- OCF
- 894.00 Cr
- EPS TTM
- 7.29
Shareholding
- Promoter Hold
- 74.96%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 50%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.