Mixed Palette for Kansai Nerolac: Q4 Profit Dips 7%, Yet Revenue and Dividend Keep Investors in the Picture

Kansai Nerolac Paints Ltd disclosed its consolidated financial results for the fourth quarter ended March 31, 2025, which were a mixed bag. The company reported consolidated net profit of ₹1.08 billion, which was lower than analysts' forecast of ₹1.37 billion, and down 7% year-on-year. The decline in profit was due to higher expenses, which diluted the impact of firm demand, particularly from the auto segment.

 

Even as the company fell short of profit expectations, operating revenue of Kansai Nerolac rose 3% to ₹18.17 billion, ahead of an estimated ₹17.69 billion. The revenue growth shows the ability of the company to outperform market expectations on topline growth despite the overall Indian paint industry grappling with soft retail demand and increasing competition.

 

The Board of Directors has also recommended a dividend of ₹3.75 per share for the year wherein a special dividend of ₹1.25 per share is being recommended. This payment matches last year's payment of a dividend, reflecting that the company is not looking to reduce dividend payments in the face of challenging market conditions.

 

Kansai Nerolac is the first major paintmaker to announce its quarterly numbers this quarter. Its diversified customer base, or its auto sector stronghold, has protected it from the effects of weak retail demand versus some of its competitors.

 

Source: Marketscreener, BSE India, CNBC-TV18