Kansai Nerolac Paints Limited (NSE: KANSAINER | BSE: 500165)
Source: Kansai Nerolac Paints Limited Annual Report FY 2025-26 / Fiscal Year Ended March 31, 2026
📋 Quick Facts: Company Snapshot
| Attribute | Disclosed Detail |
|---|---|
| Official Company Name | Kansai Nerolac Paints Limited |
| Corporate Identity Number (CIN) | L24202MH1920PLC000825 |
| NSE Symbol | KANSAINER |
| BSE Scrip Code | 500165 |
| Date of Incorporation / Founding Year | 1920 |
| Registered Office & Corporate Headquarters | 28th Floor, A-wing, Marathon Futurex, N. M. Joshi Marg, Lower Parel, Mumbai – 400 013, Maharashtra, India |
| Telephone Numbers | +91-22-4060 2500 / +91-22-4060 2501 |
| Investor Relations Email | investor@nerolac.com |
| Chairman & Independent Director | Mr. Bhaskar Bhat (DIN: 00148778) |
| Managing Director & CEO | Mr. Pravin D. Chaudhari (DIN: 02171823) |
| Chief Financial Officer (CFO) | Mr. Yash Ahuja (Appointed w.e.f. August 1, 2025) |
| Company Secretary & Compliance Officer | Mr. G. T. Govindarajan (ACS No. 8887) |
| Promoter & Ultimate Holding Company | Kansai Paint Co., Ltd., Japan (Holds 74.96% equity stake) |
| Industry / Sector Classification | Paints, Varnishes, Enamels, and Lacquers (NIC Code: 20221) |
| Total Workforce Strength | 10,241 total personnel (5,367 employees and 4,874 workers; 3,804 permanent on-roll) |
| Manufacturing Plants & R&D Hubs | 9 operating manufacturing facilities and 1 dedicated R&D centre in Navi Mumbai |
| Depots & Regional Distribution Centres | 112 Depots and 8 Regional Distribution Centres (RDCs) across India |
| Markets Served | 28 States across India and international subsidiaries in Nepal and Bangladesh |
| Statutory Auditors | S R B C & CO LLP, Chartered Accountants (Firm Reg. No.: 324982E/E300003) |
| Registrar and Share Transfer Agent (RTA) | MUFG Intime India Private Limited, 247 Park, Vikhroli (West), Mumbai – 400 083 |
| Official Corporate Website | www.nerolac.com |
🏢 The Corporate Identity: Who They Are & Where They Came From
The Big Picture
Kansai Nerolac Paints Limited (KNPL) stands as one of India’s preeminent paint and coatings manufacturers, maintaining a corporate heritage that extends over a century since its incorporation in 1920. Domiciled in Mumbai, Maharashtra, the company operates as a key subsidiary of Kansai Paint Co., Ltd., Japan, integrating global technological know-how with localized manufacturing and marketing infrastructure. The enterprise is positioned as a comprehensive coatings provider, holding market leadership across industrial segments while preserving a prominent footprint in the architectural coatings domain.
Across the Indian coatings landscape, KNPL holds the number-one market position in the automotive coatings and powder coatings segments, supported by deep technical engagements with automotive original equipment manufacturers (OEMs). Concurrently, the enterprise commands significant market share in performance and general industrial coatings. In the decorative paints sector, Kansai Nerolac is recognized as the third-largest manufacturer in India, deploying differentiated brand equity under the corporate umbrella to serve retail homeowners, building institutions, and professional applicators.
- Market Leadership: Number-one coatings provider in Indian Automotive Coatings and Powder Coatings, backed by advanced Japanese resin formulations.
- Decorative Presence: Third-largest decorative paint manufacturer in India, offering architectural paints, waterproofing compounds, wood finishes, and construction chemicals.
- Integrated Architecture: Network encompassing 9 manufacturing plants, 112 distribution depots, 8 Regional Distribution Centres, and over 35,232 active retail dealers.
The Founders, Promoters & Their Legacy
Kansai Nerolac Paints Limited traces its corporate roots back to 1920 when it was established as Gahagan Paints and Varnish Co. Limited in Mumbai. Over subsequent decades, the company transformed into Goodlass Nerolac Paints, establishing itself as a trusted household brand across the subcontinent. A transformative shift in corporate governance and technological capability occurred when Japan’s chemical conglomerate, Kansai Paint Co., Ltd. (KPJ), entered into equity participation, ultimately acquiring controlling interest and establishing KNPL as its foremost operating arm in South Asia.
Kansai Paint Co., Ltd., Japan, currently holds 60,62,03,847 equity shares representing 74.96% of the company’s total issued equity share capital. As the ultimate holding entity listed on stock exchanges in Japan, KPJ provides KNPL with uninterrupted access to frontier proprietary chemical formulations, high-solids resin systems, cathodic electro-deposition (CED) chemistries, and sustainable industrial coating methodologies. The promoter company also directly nominates seasoned leadership to the Board of Directors, steering long-term capital allocation and technical excellence.
The Journey: History & Evolution
Across more than a century of operations, the company has undertaken sequential phases of manufacturing expansion, technological shifts, and regional market penetration. Initial milestones were centered on establishing automated resin synthesis and paint processing units in Maharashtra, Uttar Pradesh, and Haryana. In the industrial segment, KNPL became the preferred technical partner for passenger car and commercial vehicle manufacturers as India’s automotive sector expanded through the 1980s and 1990s, pioneering lead-free formulations and low-bake technologies.
Recent milestones demonstrate deliberate structural modernization and geographical footprint optimization. During FY 2025-26, the company completed the brownfield manufacturing expansion at its Jainpur plant, initiating large-scale water-based paint production. To streamline domestic operations, the Board approved the Scheme of Amalgamation of its wholly owned subsidiary Nerofix Private Limited with KNPL, which was sanctioned by equity shareholders at an NCLT-convened meeting on February 27, 2026. Internationally, the company divested its entire 60% equity stake in its Sri Lankan subsidiary, Kansai Paints Lanka (Private) Limited, on December 16, 2025, to Atire (Private) Limited, realigning overseas focus toward its scalable operations in Nepal and Bangladesh.
- 1920: Incorporation of the company, laying the bedrock for industrial and architectural paint manufacturing in India.
- Turn of the Century: Strategic partnership and ultimate controlling acquisition by Kansai Paint Co., Ltd., Japan.
- December 2025: Divestment of 60% controlling equity in Kansai Paints Lanka (Private) Limited for LKR 18,00,000 (~₹ 5.25 Lakhs) to exit sub-scale foreign assets.
- February 2026: Shareholders approve the NCLT Scheme of Amalgamation of wholly owned subsidiary Nerofix Private Limited into KNPL.
- FY 2025-26: Commissioning of the Jainpur water-based capacity expansion, alongside offsite solar and captive wind energy installations.
The Corporate Umbrella
The operating architecture of Kansai Nerolac Paints Limited is configured as an integrated corporate ecosystem comprising the Indian parent and specialized domestic and overseas subsidiaries. The overarching holding hierarchy is anchored by Kansai Paint Co., Ltd., Japan, which exercises strategic and technical oversight. In the domestic market, KNPL operates its core paint division alongside Nerofix Private Limited, a wholly owned entity specializing in construction chemicals, tile adhesives, and specialized bonding agents.
Overseas, the Group deploys controlled operating companies tailored to regional South Asian economies. These comprise KNP Japan Private Limited in Nepal, wherein KNPL holds a 68% controlling interest, and Kansai Nerolac Paints (Bangladesh) Limited, in which the company maintains a 55% majority holding. These entities leverage technical formulations supplied by the parent entity while servicing distinct distribution dynamics and retail networks across their respective sovereign territories.
⚙️ The Business Engine: What They Do & Where They Operate
The Core Divisions
In accordance with Indian Accounting Standard (Ind AS) 108 on Operating Segments, the Chief Operating Decision Maker (CODM)—represented by the Management Committee under the oversight of the Board of Directors—evaluates operational performance and allocates resources based on a single reportable operating segment: Paints. The operational results, assets, and liabilities are comprehensively monitored across this unified business activity, with domestic paint consumption representing the predominant revenue generator.
| Reportable Segment | Consolidated Revenue (₹ in Crores) | % Share of Total Revenue (Calculated by IndianCompanies.in) | Profit Before Exceptional Items & Tax (₹ in Crores) | Segment Assets (₹ in Crores) | Segment Liabilities (₹ in Crores) |
|---|---|---|---|---|---|
| Paints and Allied Products | 8,051.91 | 100.00% | 860.13 | 8,711.11 | 2,022.26 |
| Total Consolidated | 8,051.91 | 100.00% | 860.13 | 8,711.11 | 2,022.26 |
While reported as a single accounting segment, KNPL operates two core commercial engines: the Decorative Business and the Industrial Business. The Decorative division addresses architectural interiors, exteriors, wood finishing, waterproofing, and institutional projects. The Industrial division encompasses three high-technology verticals: Automotive Coatings (servicing passenger cars, two-wheelers, three-wheelers, commercial vehicles, and tractors), Performance Coatings (incorporating protective coatings, coil coatings, and general industrial finishes), and Powder Coatings (addressing appliances, architectural components, and structural metalwork).
The Product & Service Catalog
The company manufactures and markets a diverse catalog spanning thousands of stock-keeping units (SKUs) designed for beauty, functional preservation, and asset protection. In the architectural sphere, products range from premium interior washable emulsions to high-durability exterior weather-proof coatings, roof elastomeric barriers, and tile adhesives. Industrial offerings encompass specialized cathodic electrodeposition resins, intermediate primers, super-durable topcoats, and solvent-free powder coatings.
- Decorative Coatings: Interior wall paints, exterior architectural coatings, enamels, wood stains, primers, and putty formulations.
- Construction Chemicals & Waterproofing: Crack-bridging elastomeric membranes, tile setting adhesives, admixtures, and specialized epoxy floorings.
- Automotive OEM Solutions: Cathodic Electro Deposition (CED) tanks, monocoats, high-solid basecoats, clear coats, and heat-resistant engine coatings.
- Automotive Mobility Enhancements: Seam sealers, PVC underbody coatings, alloy wheel finishes, and super-durable topcoats for Electric Vehicles (EVs).
- Industrial Liquid & Coil Coatings: Protective heavy-duty epoxies, polyurethanes for locomotives, coil coatings for pre-painted metal sheets, and container lacquers.
- Powder Coatings: Low-bake, fast-cure, super-durable, and flame-resistant powder systems engineered for white goods, electrical switchgear, and architectural extrusions.
The Names You Know
Kansai Nerolac manages an array of household brands, industrial product designations, and proprietary customer service platforms that maintain deep resonance across Indian retail and commercial ecosystems. Supported by high-visibility marketing—including the revitalization of the iconic Nerolac corporate audio jingle and the Mahakumbh award-winning “Dukaan it Yourself” activation—the brand portfolio delivers strong consumer recall.
- Nerolac Excel Everlast 20: Flagship exterior coating system featuring a 20-year performance warranty, superior crack-bridging, and anti-carbonation properties.
- Nerolac Beauty Gold Washable+: Premium interior wall paint featuring anti-bacterial barriers, stain resistance, and 1.25x superior washability.
- Nerolac Mica Marble Stretch & Sheen WOW: High-performance exterior elastomeric paint delivering 15% enhanced coverage and dirt pickup resistance.
- Nerolac Perma No Damp Super & R POXY 2K: Advanced waterproofing roof and terrace barriers offering surface temperature reduction and compressive bonding strength.
- NxtGen Painting Services: A digitally enabled turnkey home painting model deployed across more than 250 Indian towns with dedicated site supervision.
- NxtGen Shoppe (‘Sapphire’ & ‘Ruby’): Experiential retail outlets spanning over 150 dedicated locations and 250+ Shop-in-Shop platforms across the country.
- Pragati Loyalty Platform: Digital engagement and technical upskilling application serving a community of more than 1,00,000 trained painting contractors.
- Illuminati Programme: Influencer engagement platform interfacing with over 12,000 architects and interior designers across 45+ Indian cities.
Mapping the Domestic & Global Reach
KNPL’s primary revenue engine is anchored in the Indian domestic economy, supported by an expansive supply network that spans 28 states and union territories. The company maintains an international footprint through regional operating subsidiaries in Nepal and Bangladesh, alongside targeted cross-border product dispatches. In accordance with Note 27.1 of the Consolidated Financial Statements, the geographical disaggregation of revenues is structured as follows:
| Geographical Territory & Channel | FY 2025-26 Revenue (₹ in Crores) | FY 2024-25 Revenue (₹ in Crores) | % Share in FY 2025-26 (Calculated by IndianCompanies.in) | Latest YoY (%) |
|---|---|---|---|---|
| Manufacturing Operations: | ||||
| — India (Domestic) | 7,212.53 | 6,978.35 | 89.57% | +3.36% |
| — Asia (Overseas / Other than India) | 173.88 | 219.99 | 2.16% | -20.96% |
| Sub-Total Manufacturing (A) | 7,386.41 | 7,198.34 | 91.73% | +2.61% |
| Trading Operations: | ||||
| — India (Domestic) | 633.14 | 585.59 | 7.86% | +8.12% |
| — Asia (Overseas / Other than India) | 3.10 | 3.11 | 0.04% | -0.32% |
| Sub-Total Trading (B) | 636.24 | 588.70 | 7.90% | +8.08% |
| Total Sale of Products (A + B) | 8,022.65 | 7,787.04 | 99.64% | +3.03% |
| Other Operating Revenue (Scrap & Other) | 29.26 | 35.93 | 0.36% | -18.56% |
| Total Revenue from Operations | 8,051.91 | 7,822.97 | 100.00% | +2.93% |
Total overseas operations accounted for 2.20% of consolidated turnover during FY 2025-26, compared to 2.87% during FY 2024-25. Standalone direct exports from India accounted for 0.13% of standalone turnover, reflecting the group’s focused strategy of serving international markets primarily via dedicated local manufacturing entities in Nepal and Bangladesh.
The Brick & Mortar Footprint
The industrial infrastructure of Kansai Nerolac Paints is distributed across strategically located chemical clusters throughout India, providing localized production capability within immediate proximity of key automotive manufacturing corridors and high-consumption decorative markets. The company operates 9 owned manufacturing plants alongside a central corporate R&D center in Navi Mumbai, Maharashtra.
- Lote Parshuram Plant (Maharashtra): Primary chemical synthesis and resin processing facility supporting industrial and architectural demand.
- Jainpur Plant (Kanpur Dehat, Uttar Pradesh): Modernized site featuring recently commissioned brownfield water-based paint capacity.
- Bawal Plant (Haryana): Strategic facility servicing northern automotive OEM hubs; underwent acrylic resin expansion during the year.
- Sayakha Plant (Bharuch, Gujarat): High-capacity modern plant undergoing alkyd, polyester resin, and automotive paint line expansions.
- Hosur Plant (Krishnagiri, Tamil Nadu): Key southern manufacturing hub catering to automotive OEMs, powder coatings, and decorative demand.
- Goindwal Sahib Plant (Tarn Taran, Punjab): Major northern manufacturing plant supplying architectural finishes across north-western markets.
- Kakoda Plant (Goa): Regional specialized production site supporting western coastal markets.
- Sarigam Plant (Gujarat): Supplementary chemical and paint manufacturing unit.
- Atchutapuram Plant (Andhra Pradesh): Modern eastern coastal unit enhancing southern and eastern supply chain agility.
- Central R&D Centre (Navi Mumbai, Maharashtra): Advanced testing, color forecasting, and polymer synthesis center driving product development.
- Distribution Backbone: 112 company-operated Depots and 8 Regional Distribution Centres (RDCs) ensuring seamless nationwide delivery.
📊 The Financial Health: The Numbers Simplified
Earnings, Expenses, & Take-Home Profits
During the fiscal year ended March 31, 2026, Kansai Nerolac Paints Limited achieved consolidated revenue from operations of ₹ 8,051.91 Crores, representing a 2.93% expansion over ₹ 7,822.97 Crores reported in FY 2024-25. Profit before exceptional items and tax grew by 1.37% to reach ₹ 860.13 Crores compared to ₹ 848.52 Crores in the previous fiscal year, demonstrating disciplined overhead cost control in a competitive market environment.
Net profit after tax attributable to the owners of the company stood at ₹ 589.47 Crores in FY 2025-26, compared to ₹ 1,142.95 Crores in FY 2024-25. This year-on-year contraction was largely influenced by exceptional items: while the previous fiscal year included a pre-tax exceptional gain of ₹ 665.44 Crores from the monetization of investment property at Lower Parel, Mumbai, FY 2025-26 reflected net exceptional charges of ₹ 63.15 Crores comprising Wage Code actuarial provisions, warehouse fire losses, and foreign subsidiary asset impairments.
| Consolidated Statement of Profit and Loss (₹ in Crores) | FY 2025-26 | FY 2024-25 | Latest YoY (%) |
|---|---|---|---|
| Income: | |||
| Revenue from Operations | 8,051.91 | 7,822.97 | +2.93% |
| Other Income | 145.94 | 139.15 | +4.88% |
| Total Income | 8,197.85 | 7,962.12 | +2.96% |
| Expenses: | |||
| Cost of Materials Consumed | 4,581.64 | 4,572.15 | +0.21% |
| Purchases of Stock-in-trade | 508.24 | 488.37 | +4.07% |
| Changes in Inventories of Finished Goods, Work-in-progress and Stock-in-trade | 106.72 | 8.80 | +1112.73% |
| Employee Benefits Expense | 542.14 | 501.89 | +8.02% |
| Finance Costs | 32.29 | 31.25 | +3.33% |
| Depreciation and Amortisation Expenses | 228.12 | 201.70 | +13.10% |
| Other Expenses | 1,338.57 | 1,309.44 | +2.22% |
| Total Expenses | 7,337.72 | 7,113.60 | +3.15% |
| Profit Before Exceptional Items and Tax | 860.13 | 848.52 | +1.37% |
| Exceptional Items | (63.15) | 629.51 | N/M |
| Profit Before Tax | 796.98 | 1,478.03 | -46.08% |
| Current Tax | 217.53 | 329.29 | -33.94% |
| Adjustment of tax relating to earlier periods | 4.02 | — | – |
| Deferred Tax | (0.41) | 39.41 | N/M |
| Total Tax Expense | 221.14 | 368.70 | -40.02% |
| Profit for the Year | 575.84 | 1,109.33 | -48.09% |
| Attributable to: | |||
| — Owners of the Company | 589.47 | 1,142.95 | -48.43% |
| — Non-Controlling Interests | (13.63) | (33.62) | -59.46% |
| Other Comprehensive Income (Net of Tax) | (0.92) | 2.48 | N/M |
| Total Comprehensive Income for the Year | 574.92 | 1,111.81 | -48.29% |
| Basic Earnings Per Share (₹) | 7.29 | 14.14 | -48.44% |
| Diluted Earnings Per Share (₹) | 7.28 | 14.12 | -48.44% |
Operating expenditure reflects stable raw material consumption dynamics despite fluctuations in crude oil derivatives and currency movements. The cost of materials consumed marginally moved from ₹ 4,572.15 Crores to ₹ 4,581.64 Crores. Freight and forwarding expenses stood at ₹ 461.82 Crores, while advertisement and sales promotion outlays reached ₹ 339.26 Crores. Standalone metrics revealed an operating profit margin of 12.7% and a debtor turnover period of 50 days compared to 47 days in the preceding year.
Assets, Borrowings, & Net Worth
The consolidated balance sheet of Kansai Nerolac Paints Limited illustrates robust capitalization, characterized by high liquidity and a negative net debt position. Total consolidated assets stood at ₹ 8,711.11 Crores as of March 31, 2026, compared to ₹ 8,217.03 Crores in the previous year. Tangible Property, Plant and Equipment expanded to ₹ 2,085.68 Crores, while the current investment portfolio held in liquid mutual funds expanded to ₹ 2,358.88 Crores.
| Consolidated Balance Sheet (₹ in Crores) | As at 31st March, 2026 | As at 31st March, 2025 | Latest YoY (%) |
|---|---|---|---|
| ASSETS: | |||
| Property, Plant and Equipment | 2,085.68 | 2,007.06 | +3.92% |
| Capital Work-in-progress (CWIP) | 169.91 | 221.42 | -23.26% |
| Right of Use Assets (ROU) | 265.19 | 225.97 | +17.36% |
| Investment Property | 0.12 | 0.12 | 0.00% |
| Goodwill on Consolidation | 2.47 | 2.47 | 0.00% |
| Other Intangible Assets | 50.84 | 10.69 | +375.58% |
| Intangible Assets Under Development | 4.78 | 4.78 | 0.00% |
| Non-Current Financial Assets (Investments & Other) | 28.00 | 74.85 | -62.59% |
| Non-Current Tax Assets (Net) & Other Non-Current Assets | 330.45 | 317.37 | +4.12% |
| Total Non-Current Assets | 2,937.44 | 2,864.73 | +2.54% |
| Inventories | 1,530.17 | 1,665.07 | -8.10% |
| Current Financial Assets: | |||
| — Current Investments | 2,361.43 | 1,845.98 | +27.92% |
| — Trade Receivables | 1,467.36 | 1,356.70 | +8.16% |
| — Cash and Cash Equivalents | 196.79 | 94.00 | +109.35% |
| — Bank Balances other than Cash and Cash Equivalents | 28.99 | 196.06 | -85.21% |
| — Other Financial Assets | 7.69 | 20.49 | -62.47% |
| Other Current Assets | 181.24 | 174.00 | +4.16% |
| Total Current Assets | 5,773.67 | 5,352.30 | +7.87% |
| TOTAL ASSETS | 8,711.11 | 8,217.03 | +6.01% |
| EQUITY AND LIABILITIES: | |||
| Equity Share Capital | 80.87 | 80.84 | +0.04% |
| Other Equity | 6,632.91 | 6,342.32 | +4.58% |
| Equity Attributable to Owners of the Company | 6,713.78 | 6,423.16 | +4.52% |
| Non-Controlling Interests | (24.93) | (18.70) | +33.32% |
| Total Equity | 6,688.85 | 6,404.46 | +4.44% |
| Share Application Money Pending Allotment | 0.00 | 0.00 | N/M |
| Non-Current Liabilities: | |||
| Non-Current Borrowings | 8.68 | 30.00 | -71.07% |
| Non-Current Lease Liabilities | 172.33 | 145.47 | +18.46% |
| Non-Current Provisions & Deferred Tax Liabilities (Net) | 184.10 | 186.50 | -1.29% |
| Total Non-Current Liabilities | 365.11 | 361.97 | +0.87% |
| Current Liabilities: | |||
| Current Borrowings | 74.00 | 87.82 | -15.74% |
| Current Lease Liabilities | 47.72 | 33.10 | +44.17% |
| Trade Payables (MSME & Other Creditors) | 1,164.66 | 1,100.75 | +5.81% |
| Other Financial Liabilities | 231.08 | 130.40 | +77.21% |
| Other Current Liabilities, Provisions & Tax Liabilities | 139.69 | 98.53 | +41.77% |
| Total Current Liabilities | 1,657.15 | 1,450.60 | +14.24% |
| TOTAL EQUITY AND LIABILITIES | 8,711.11 | 8,217.03 | +6.01% |
Gross debt across non-current and current maturities contracted from ₹ 117.82 Crores to ₹ 82.68 Crores. When evaluated against cash, cash equivalents, and bank deposits totaling ₹ 223.37 Crores, the group reported an adjusted net debt of negative ₹ 140.69 Crores, yielding an adjusted net debt-to-equity ratio of -0.021. Total equity attributable to owners grew to ₹ 6,713.78 Crores, underscoring balance sheet resilience.
Cash Flow: Tracking the Money Movement
Kansai Nerolac generated ₹ 894.37 Crores in net operating cash flow during FY 2025-26, demonstrating an improvement of 33.02% over ₹ 672.36 Crores recorded in FY 2024-25. This operational cash flow expansion was achieved through improved inventory discipline, which released ₹ 124.68 Crores of capital, offset by an increase of ₹ 125.29 Crores in trade receivables.
| Consolidated Statement of Cash Flows (₹ in Crores) | FY 2025-26 | FY 2024-25 | Latest YoY (%) |
|---|---|---|---|
| Operating Profit Before Working Capital Changes | 1,000.84 | 970.60 | +3.12% |
| Working Capital Adjustments (Inventories, Receivables, Payables) | 116.55 | (40.61) | N/M |
| Cash Generated from Operations | 1,117.39 | 929.99 | +20.15% |
| Direct Taxes Paid (Net of Refunds) | (223.02) | (257.63) | -13.43% |
| Net Cash Flows generated from Operating Activities (A) | 894.37 | 672.36 | +33.02% |
| Purchase of PPE and Other Intangibles (CapEx & CWIP) | (213.12) | (326.30) | -34.69% |
| Proceeds from Sale of Investment Property (Net of Tax in FY 24-25) | — | 504.07 | – |
| Net Movement in Current & Non-Current Investments and Bank Deposits | (181.22) | (566.98) | -68.04% |
| Other Investing Inflows (Interest, Dividends, Asset Sale Proceeds) | 11.69 | 10.59 | +10.39% |
| Net Cash Flows used in Investing Activities (B) | (382.65) | (378.62) | +1.06% |
| Repayment of Long-Term & Current Borrowings (Net) | (30.00) | 2.97 | N/M |
| Payment of Lease Liabilities (Principal & Interest) | (56.86) | (50.45) | +12.71% |
| Interest Paid on Borrowings | (13.26) | (15.50) | -14.45% |
| Dividend Paid to Equity Shareholders & Minority Interests | (303.18) | (303.14) | +0.01% |
| Net Cash Flows used in Financing Activities (C) | (403.30) | (366.12) | +10.16% |
| Net Increase / (Decrease) in Cash & Cash Equivalents (A + B + C) | 108.42 | (72.38) | N/M |
| Cash & Cash Equivalents at Beginning of the Year (Net of Bank Overdraft) | 29.60 | 101.98 | -70.97% |
| Cash & Cash Equivalents at End of the Year (Net of Bank Overdraft) | 138.02 | 29.60 | +366.28% |
Investing cash outflows stood at ₹ 382.65 Crores, dominated by property, plant, and equipment additions of ₹ 213.12 Crores alongside ongoing treasury investments in liquid mutual funds. Financing cash outflows totaled ₹ 403.30 Crores, driven by shareholder dividend disbursements of ₹ 303.18 Crores, lease liability amortizations of ₹ 56.86 Crores, and debt repayments of ₹ 30.00 Crores, culminating in net cash and cash equivalents of ₹ 138.02 Crores.
Funding the Future: CapEx, CWIP & R&D Spending
KNPL continues to fund capital expenditure programs entirely through internal accruals. During FY 2025-26, aggregate cash additions to property, plant, equipment, and intangibles (incorporating adjustments for capital advances and creditors) reached ₹ 213.12 Crores. Capital Work-in-Progress (CWIP) as of March 31, 2026, closed at ₹ 169.91 Crores compared to ₹ 221.42 Crores in the preceding period, reflecting the commercial commissioning of projects at Jainpur and Sayakha.
Research and development expenditure serves as an engine for proprietary formulations, import substitution, and VOC abatement. Total R&D expenditure incurred during FY 2025-26 expanded to ₹ 54.32 Crores (representing ₹ 3.10 Crores in capital additions and ₹ 51.22 Crores in recurring expenses), compared to ₹ 51.86 Crores in FY 2024-25. The company held capital commitments of ₹ 92.80 Crores remaining to be executed on capital account as of year-end.
- R&D Allocation: ₹ 54.32 Crores invested across polymer synthesis, automotive CED systems, and sustainable architectural emulsions.
- Energy Conservation CapEx: Dedicated capital expenditure of ₹ 23.50 Crores directed toward energy efficiency, offsite solar, and wind infrastructure.
- Forward CapEx Commitments: ₹ 92.80 Crores in capital contracts pending execution across manufacturing sites.
🗺️ The Corporate Family Tree: Structure & Investments
Subsidiaries, Associates, & Joint Ventures (Form AOC-1)
KNPL exercises operational control over several domestic and overseas operating entities. In accordance with Section 129(3) of the Companies Act, 2013 and Schedule III requirements, performance metrics across group subsidiaries are summarized below:
| Entity Name | Jurisdiction / Relationship | Equity Stake Held by KNPL | Turnover (₹ in Crores) | Profit / (Loss) After Tax (₹ in Crores) | Net Assets / Equity (₹ in Crores) |
|---|---|---|---|---|---|
| Nerofix Private Limited | India / Wholly Owned Subsidiary | 100.00% | 163.89 | (7.64) | (13.22) |
| KNP Japan Private Limited | Nepal / Overseas Subsidiary | 68.00% | 76.12 | 6.01 | 66.48 |
| Kansai Nerolac Paints (Bangladesh) Limited | Bangladesh / Overseas Subsidiary | 55.00% | 91.25 | (27.55) | (101.56) |
| Kansai Paints Lanka (Private) Limited | Sri Lanka / Former Subsidiary (Divested 16th Dec 2025) | 60.00% (Divested) | Disclosed till sale | (7.89) | 0.06 |
Strategic reorganization was prominent throughout the fiscal year. Nerofix Private Limited recorded operational turnover growth of 30.87% to ₹ 163.89 Crores while narrowing its net loss to ₹ 7.64 Crores; its amalgamation into the parent company will integrate construction chemical operations. In Bangladesh, macroeconomic turbulence impacted sales, resulting in turnover of ₹ 91.25 Crores and a loss of ₹ 27.55 Crores, prompting an impairment provision of ₹ 5.76 Crores. In contrast, KNP Japan Private Limited in Nepal achieved steady performance, generating ₹ 76.12 Crores in turnover and ₹ 6.01 Crores in profit after tax.
Strategic Investments & Treasury Holdings
The company maintains a conservative, liquidity-oriented treasury portfolio. Non-current investments stood at ₹ 3.87 Crores as of March 31, 2026, comprising quoted equity instruments valued at ₹ 1.80 Crores and unquoted holdings of ₹ 2.07 Crores. The company held no debenture investments or encumbered non-current investment assets.
Current treasury investments totaled ₹ 2,361.43 Crores, deployed predominantly in unquoted debt and liquid mutual fund schemes valued at ₹ 2,358.88 Crores, alongside quoted bonds of ₹ 2.55 Crores. These liquid reserves provide financial flexibility, allowing the company to fund capital programs internally and meet working capital requirements without structural bank borrowing.
👥 Power & Control: Who Pulls the Strings?
The Brain Trust: Board of Directors & Key Managerial Personnel (KMP)
The governance structure of Kansai Nerolac Paints Limited is overseen by a Board of Directors that balances independent professional oversight with strategic promoter alignment. As of March 31, 2026, the Board comprised seven directors, including three Non-Executive Independent Directors, two Non-Executive Promoter Nominee Directors, and two Executive Directors.
| Name of Director / Executive | DIN / Designation | Category / Board Function | Background & Core Competencies Disclosed |
|---|---|---|---|
| Mr. Bhaskar Bhat | 00148778 / Chairman | Non-Executive Independent Director | B.Tech (IIT Madras), PGDBM (IIM Ahmedabad); Leadership, Business Strategy, Sales & Marketing, Corporate Governance. |
| Mr. Pravin D. Chaudhari | 02171823 / Managing Director | Executive Director (MD & CEO) | B.E., Masters in Management (Mumbai University); Operations Management, Manufacturing, Supply Chain, and Strategy. |
| Ms. Sonia Singh | 07108778 / Director | Non-Executive Independent Director | BA (Economics), MBA; Brand Strategy, Sales & Marketing, Risk Management, People Management, ESG. |
| Mr. Uday S. Bhansali | 00363902 / Director | Non-Executive Independent Director | Chartered Accountant; Strategic Investing, Large Scale Transformation, M&A, Financial Due Diligence, Forensics. |
| Mr. Takashi Tomioka | 08736654 / Director | Non-Executive Director (Promoter Nominee) | Tokyo Gakugei University; Paint Sales, International Business Strategy, Sustainability, M&A. |
| Mr. Gen Yokota | 11084786 / Director | Non-Executive Director (Promoter Nominee) | M.S. in Material and Life Science Engineering (Osaka University); Paint R&D, Technology, International Procurement. |
| Mr. Hirokazu Kotera | 10707431 / Executive Director | Executive Director (Resigned w.e.f. 31st March 2026) | BA (Kyoto University), MBA (Kwansei Gakuin University); Sales, Brand Management, Corporate Planning. |
| Mr. Yash Ahuja | Chief Financial Officer (CFO) | Key Managerial Personnel | Appointed CFO w.e.f. August 1, 2025; Oversees corporate financial controllership, treasury, and risk reporting. |
| Mr. G. T. Govindarajan | Company Secretary (CS) | Key Managerial Personnel | Compliance Officer and Secretary to Board Committees; Oversees corporate secretarial governance and IEPF compliance. |
Changes in executive leadership occurred during the year. Mr. Pravin D. Chaudhari assumed the office of Managing Director effective April 1, 2025, for a three-year tenure concluding March 31, 2028. In the finance function, former CFO Mr. P. D. Pai retired on July 31, 2025, with Mr. Yash Ahuja appointed as Chief Financial Officer on August 1, 2025. Executive Director Mr. Hirokazu Kotera resigned from the Board effective March 31, 2026, pursuant to directions from promoter entity Kansai Paint Co., Ltd., Japan.
Who Owns the Stock? Shareholding Pattern
The shareholding structure of Kansai Nerolac Paints is anchored by Kansai Paint Co., Ltd., Japan, which maintains a 74.96% equity stake. The remaining 25.04% public float is distributed among institutional bodies, domestic mutual funds, insurance conglomerates, and retail investors across India.
| Shareholder Category | Number of Folios | % to Number of Folios | Number of Equity Shares Held | % Shareholding |
|---|---|---|---|---|
| Promoter & Promoter Group: | ||||
| — Kansai Paint Co., Ltd., Japan (Foreign Promoter) | 1 | 0.00% | 60,62,03,847 | 74.96% |
| Sub-Total Promoter Holding (A) | 1 | 0.00% | 60,62,03,847 | 74.96% |
| Institutional Investors: | ||||
| — Insurance Companies | Disclosed in aggregate | — | 6,42,68,818 | 7.95% |
| — Mutual Funds | Disclosed in aggregate | — | 2,92,97,446 | 3.62% |
| — Alternate Investment Funds (AIFs) | Disclosed in aggregate | — | 26,40,500 | 0.33% |
| — Banks & NBFCs registered with RBI | Disclosed in aggregate | — | 13,588 | 0.00% |
| Sub-Total Institutional Investors (B1) | — | — | 9,62,20,352 | 11.90% |
| Non-Institutional Investors: | ||||
| — Indian Public | Disclosed in aggregate | — | 6,51,80,656 | 8.06% |
| — Foreign Portfolio Investors (FPIs / FIIs) | 3,646 (total foreign) | 2.36% | 2,91,74,453 | 3.61% |
| — Non-Resident Indians (NRIs) | Included above | — | 34,67,979 | 0.43% |
| — Bodies Corporate, HUF, Trusts, LLPs & Clearing | Disclosed in aggregate | — | 64,17,049 | 0.79% |
| — Investor Education and Protection Fund (IEPF) | Disclosed in aggregate | — | 11,20,614 | 0.14% |
| — Escrow Account | Disclosed in aggregate | — | 8,73,580 | 0.11% |
| Sub-Total Non-Institutional Investors (B2) | — | — | 10,62,34,074 | 13.14% |
| Total Non-Promoter Shareholding (B = B1 + B2) | 1,54,704 | 100.00% | 20,24,54,426 | 25.04% |
| GRAND TOTAL (A + B) | 1,54,705 | 100.00% | 80,86,58,273 | 100.00% |
As of March 31, 2026, the authorized share capital stood at ₹ 85.00 Crores divided into 85,00,00,000 equity shares of ₹ 1 each. The issued, subscribed, and fully paid-up equity share capital stood at ₹ 80.87 Crores represented by 80,86,58,273 equity shares of ₹ 1 each, following the allotment of 2,13,393 equity shares upon the exercise of units under the RSU Plan 2022. Dematerialized equity accounted for 99.85% of total paid-up share capital.
🎯 The Strategic Outlook: Future Plans & Potential Pitfalls
Competitive Advantages & Economic Moats
Kansai Nerolac maintains distinct structural competitive advantages across the Indian industrial and decorative paint landscapes. In industrial coatings, the company’s economic moat is reinforced by high technological barriers to entry. Automotive OEMs require multi-year technical qualification cycles, proprietary CED polymer chemistry, dedicated on-site technical service teams, and automated dispensing capabilities—competencies KNPL has refined through its partnership with Kansai Paint Co., Ltd., Japan.
- Technical Moat in Automotive: Pioneer in Cathodic Electrodeposition (CED) and high-solid coatings, supported by Japanese parentage and integrated R&D.
- Extensive Retail Distribution: Pan-India commercial footprint reaching 35,232 active retail dealers serviced via 112 distribution depots and 8 regional distribution centers.
- Turnkey Service Ecosystem: NxtGen Painting Services operational in over 250 towns, supported by more than 150 NxtGen Shoppe outlets.
- Influencer Scale: Over 1,00,000 applicators trained via the Pragati curriculum and 12,000 design professionals engaged through the Illuminati program.
- Operational Capital Structure: Negligible reliance on bank debt, negative net debt of ₹ 140.69 Crores, and a current investment liquidity reserve of ₹ 2,361.43 Crores.
What Could Go Wrong? Key Challenges & Business Risks
Kansai Nerolac faces several external and operational risks that could impact operating margins and volume expansion. Profitability remains sensitive to raw material cost fluctuations, as key inputs such as titanium dioxide, phthalic anhydride, solvents, and specialty additives are crude oil derivatives or imported commodities. While average crude oil prices moderated during the fiscal year, foreign exchange depreciation partially offset input cost savings, leaving import outgo at ₹ 1,099.32 Crores.
The company also monitors outstanding contingent liabilities and disputed fiscal demands. Note 35 details claims against the group not acknowledged as debt totaling ₹ 44.79 Crores, comprising sales tax disputes of ₹ 17.66 Crores, income tax challenges of ₹ 14.87 Crores, excise and service tax matters of ₹ 8.59 Crores, and GST demands of ₹ 3.06 Crores. Additionally, seasonal disruptions, such as extended monsoon periods, can impact exterior painting cycles, while intense competitive dynamics from established peers and new entrants continue to influence promotional pricing across retail channels.
The Next Chapter: Growth & CapEx Initiatives
The strategic roadmap for FY 2026-27 is centered on premium product innovation, operational decarbonization, and capacity expansion. In manufacturing, the company is advancing automotive paint capacity additions at its Sayakha facility to support emerging OEM vehicle platforms. At the same time, resin synthesis capacity enhancements (industrial alkyd and polyester at Sayakha; acrylic resins at Bawal) are underway to support internal consumption and contain intermediate input costs.
In sustainability, KNPL is working toward its Corporate RE 70 theme and SBTi-approved decarbonization targets, which aim for a 46.2% absolute reduction in Scope 1 and Scope 2 GHG emissions by FY 2029-30 relative to the FY 2018-19 baseline. During the year, the company commissioned a second captive wind turbine (2,100 KW) at Sayakha, lifting total captive windmill capacity to 10,500 KW. It also commissioned a 3,000 KW offsite captive solar installation in Yavatmal, Maharashtra, to power the Lote facility, bringing its total renewable power green footprint across its 8 primary plants to 46.8%.
- Sayakha Expansions: Commissioning dedicated OEM automotive paint lines alongside expanded alkyd and polyester resin units.
- Bawal Expansions: Ongoing acrylic resin enhancements and offsite solar integration to optimize unit power costs.
- Digital Modernization: Enterprise migration to SAP S/4HANA alongside predictive artificial intelligence applications for distributor ordering and painter engagement.
- Green Energy Mix: Progressing toward the RE 70 benchmark via expanded offsite solar purchase agreements and onsite captive wind generation.
The Verdict: Strategic Outlook & Conclusion
Kansai Nerolac Paints Limited closed FY 2025-26 with steady core operations, generating ₹ 8,051.91 Crores in consolidated revenue from operations and ₹ 860.13 Crores in pre-exceptional pre-tax profit. The absorption of exceptional charges—including the Wage Code implementation liability of ₹ 44.72 Crores and foreign subsidiary restructuring adjustments—impacted reported net earnings but resolved several transitional legacy exposures.
Supported by a negative net debt position, cash generation of ₹ 894.37 Crores from operations, and total equity of ₹ 6,688.85 Crores, KNPL maintains a resilient balance sheet. Backed by technological collaboration with Kansai Paint Co., Ltd., Japan, leadership across automotive and powder coatings, and ongoing brownfield resin integrations, the company remains positioned to participate in India’s structural infrastructure expansion, automotive demand, and consumer premiumization trends.
Official Site: https://www.nerolac.com