Kansai Nerolac Paints Limited (KANSAINER)
Micro CapChemicals stocks · Micro cap · NSE
Kansai Nerolac Paints is a leading Indian paint manufacturer, ranked 2nd in consumer paint brands and a leader in industrial paints, leveraging Japanese technology. It focuses on creating healthy and beautiful environments through protective and inspiring solutions, with a vision to design solutions that protect, inspire, and touch lives everyday.
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 argues for patience, and recent execution is consistent.
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 30 Jun 2026
Average · 32/100margin compression · Rev +10% YoY · PAT +6% YoY · +21% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,374 Cr | +9.8% | +21.5% |
| EBITDA | ₹328 Cr | +8.3% | +51.9% |
| Operating margin | 14.0% | +0 bps | +300 bps |
| PAT | ₹228 Cr | +5.6% | +107.3% |
| PAT margin | 9.6% | -39 bps | +397 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q4 FY26 consolidated net revenue grew 7.5% YoY, with PBDIT (Operating) up 30.6% YoY, driven by strong industrial demand. Full-year FY26 consolidated net revenue grew 2.9% YoY, with PBDIT (Operating) up 3.4% YoY, indicating a weaker annual performance despite Q4 recovery.
While Q4 FY26 showed strong operational recovery with robust PBDIT growth, the full-year performance was modest. The company faces significant external headwinds from crude oil prices, rupee depreciation, and supply chain disruptions, which could pressure margins and demand visibility. The focus on new products and B2B projects in decorative, and premiumization in industrial, are positive, but execution against macro challenges is key.
New Decorative Products
Launched Excel Sheen, Excel Everlast (14/20-year warranty), Beauty Gold Washable+, Perma No Heat, Soldier Rain Raksha.
Decorative New Business
Robust growth witnessed in Construction Chemicals, Water Proofing, and Premium Wood Finish, increasing saliency.
Decorative Projects (B2B)
Expanded presence to 80+ towns, high double-digit growth, and increased saliency.
Automotive Segment Demand
Healthy demand in Passenger Vehicles, high double-digit growth in 2W+3W, and strong double-digit demand in Commercial Vehicles & Tractors.
Government Infrastructure Focus
Government focus on infrastructure development.
Automotive Sector Demand
Healthy demand witnessed in automotive, supported by new models and SUVs.
Construction Activity Momentum
As per RBI, construction activity is expected to sustain momentum.
Rural Demand Support
Strong harvest season supported demand for Commercial Vehicles & Tractors.
Crude Oil Price Increase
Significant crude oil price increase.
Rupee Depreciation
Significant rupee depreciation leading to import cost surge.
West Asia Crisis
West Asia Crisis causing supply chain disruptions.
Material Inflation & Price Increase
Steep material inflation leading to paint price increases.
General Economic Conditions
Future results could differ materially from current views due to general economic conditions.
Foreign Exchange Fluctuations
Foreign exchange fluctuations are a potential risk.
Competitive Pressures
Competitive product and pricing pressures are potential risks.
Regulatory Developments
Regulatory developments could cause actual results to differ materially.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
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.
The document explicitly provides YoY growth for Q4 and the full fiscal year, which is standard for paint companies due to seasonality and long-term trend analysis.
Consolidated Net Revenue Growth (Q4 FY26)
7.5% YoY
Consolidated PBDIT (Operating) Growth (Q4 FY26)
30.6% YoY
Consolidated PBT (Before Exceptional Items) Growth (Q4 FY26)
23.2% YoY
Standalone Net Revenue Growth (FY26)
3.2% YoY
Construction Activity Outlook
As per RBI, construction activity is expected to sustain momentum.
Demand Visibility
Demand visibility remains uncertain due to the inflationary scenario.
Material Inflation Impact
Paint price increases are expected on account of steep material inflation.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Consolidated Net Revenue Growth | Q4 FY26: 7.5% YoY; FY26: 2.9% YoY | Sustained growth momentum in decorative and industrial segments amidst price increases. |
| Consolidated PBDIT (Operating) Margin | Q4 FY26: 11.1%; FY26: 12.1% | Ability to maintain or expand margins despite raw material inflation and rupee depreciation. |
| Working Capital Days | Inventories 109 NOD, Debtors 50 NOD (FY26) | Efficiency in managing inventory and receivables to optimize cash flow. |
| Raw Material Price Trends | Significant crude oil price increase, high commodity prices. | Stabilization or reduction in crude oil and other commodity prices. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
41Neutralfull bear SMA stack · MACD −
Technical chart
KANSAINERdaily · 1Y · AUTO+0.4%Daily technical trend read
NeutralTrend is undirectional — long-term trend down. RSI 39.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 roughly flat — short-term momentum stalled.
- RSI(14) at 39 — sideways, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 26% off 52W high · 23% 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
U-Score 38 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 38 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 3.3%.
- Piotroski is strong at 8/9.
- Balance sheet contributes 13/15 to the score.
Main drags
- Fair-value margin of safety is negative at -195.7%.
- Quality is weaker at 1/20; verify the latest quarterly trend.
- Valuation is weaker at 5/30; 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
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
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 90th percentile of the scored universe and 85th percentile within Chemicals. No major sub-score weakness stands out.
High Trust Lite: Promoter holding is 75%. Key concern: 1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Chemicals: 85th pctile, median 73 · Micro: 81st pctile, median 73
121 documents have extracted text, 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 3.3%.
- ▸11 years of positive FCF.
Trust risks
- ▸1 of the latest 4 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.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 24.40
- P/B
- 2.34
- EV/EBITDA
- 12.93
- Market Cap
- 15706.00Cr
Profitability
- ROE
- 8.82%
- ROCE
- 12.00%
- ROA
- 6.76%
- Dividend Y
- 1.29%
Growth (CAGR)
- Revenue 5Y
- 10.00%
- EPS 5Y
- 2.00%
- Revenue 3Y
- 2.00%
- EPS 3Y
- 7.00%
Balance Sheet
- Debt/Equity
- 0.05
- Interest Coverage
- 30.30×
- Altman Z
- 7.39
- Book Value
- 83.00
Cash Flow
- FCF Yield
- 3.25%
- FCF Positive Y
- 11/5
- OCF
- 894.00 Cr
- EPS TTM
- 7.42
Shareholding
- Promoter Hold
- 74.96%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 34%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in Chemicals, ranked by similarity
Peers
Business-comparable peers in Chemicals — 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.