Kansai Nerolac Q1 Revenue Rises 9.8%; Next Pricing Cycle May Lift Margins
Kansai Nerolac reported Q1 net profit of Rs 232 crore, up 4.8% year-on-year, on revenue growth of 9.8% to Rs 2,374 crore. Macquarie sees industrial price hikes, cost control and premiumisation supporting margins, while Rs 600 crore in auto-coatings capex may weigh on return ratios.
Kansai Nerolac’s Q1 profit and revenue rose, while Macquarie expects industrial price hikes, cost control and premiumisation to support FY27 margins. Decorative growth lagged Asian Paints, while Rs 600 crore auto-coatings capex could pressure return ratios.
Why this matters
The results extend Kansai Nerolac's recent pattern of using price hikes to offset West Asia cost pressures while pursuing Rs 601 crore of capacity expansion through FY29.
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