Q1 2026 Kansai Nerolac Paints Ltd Earnings Call Transcript
Key Points
- Kansai Nerolac Paints Ltd (BOM:500165) has a strong brand legacy, being over 100 years old, and is recognized as the number two brand in top-of-mind awareness in India.
- The company is making significant strides in ESG, being water positive and increasing its green energy footprint to over 40%.
- Kansai Nerolac Paints Ltd has launched innovative products such as Nerolac Perma No Heat and Rain Raksha White Emulsion, which offer unique benefits like superior whiteness and excellent weather resistance.
- The company has seen positive growth in its industrial segment, particularly in the automotive sector, where it has launched premium products like high gloss clear coat for four-wheelers.
- Kansai Nerolac Paints Ltd's services business, Paint-as-a-Service, is growing well and now contributes to 5% of the total business.
- The company's revenue growth was modest at 1.8% for standalone results, with a decline in EBITDA by 6.7%.
- Kansai Nerolac Paints Ltd faces challenges in the Bangladesh market, which is contributing to higher losses.
- The decorative segment experienced flat volume growth, and the early onset of monsoon impacted sales in May.
- Geopolitical tensions and supply chain disruptions are causing volatility in commodity prices, affecting the company's operations.
- The imposition of anti-dumping duty on Chinese titanium dioxide is expected to contribute to cost inflation.
Ladies and gentlemen, good day and welcome to Kansai Nerolac Q1 FY26 earnings conference call hosted by ICICI Securities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Anirudh Joshi from ICICI Securities. Thank you, and over to you, sir.
Yeah, thanks, Shubham. On behalf of ICICI Securities, we welcome you all to Q1 FY26 results conference call of Kansai Nerolac Paints. We have with us today senior management, represented by Mr. Pravin Chaudhari, Managing Director; Mr. Yash Ahuja, Chief Financial Officer designate; and Mr. Jason Gonsalves, Director, Corporate Planning, IT, and Materials.
Now I hand over the call to Mr. Pravin for his initial comments on the quarterly performance, and then we will open the floor for question-and-answer session. Thanks and over to you, sir.
Thank you, Anirudh, and good
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