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EBITDA declines, margins compress; company flags ₹44.7-crore labour code impact. Shares of Kansai Nerolac Paints Ltd closed at ₹227.89, down ₹6.28 or 2.68%, on February 3.
Kansai Nerolac Paints Ltd reported a sharp decline in net profit for Q3FY26, with profit falling 82.2% year-on-year to ₹121 crore from ₹680 crore. Revenue for the quarter rose marginally by 3.1% to ₹1,928 crore compared with ₹1,922 crore in the year-ago period.
EBITDA declined 2.3% YoY to ₹230 crore from ₹235 crore, while the EBITDA margin fell slightly to 11.6% compared with 12.2% in the corresponding quarter last year.
The company informed that it reported a new labour code impact of ₹44.7 crore during the quarter.
For the nine-month period ended December, 2025, the company's net revenue stood at ₹5,865.79 crore, registering a growth of 1.9% compared with the same period last year. EBITDA was ₹771.10 crore, down 3.2% year-on-year, while profit before tax (before exceptional items) declined 4% to ₹714.18 crore.
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Commenting on the results, Pravin Chaudhari, Managing Director, Kansai Nerolac Paints Ltd said, “Industrial coatings registered strong growth during the quarter led by automotive. The positive effect of the rate cuts in GST done towards the end of September has led to good demand across various OEM categories."
He added that raw material prices have been stable though the quarter saw a lot of volatility in forex and geopolitical uncertainty. "Looking forward, the growth momentum is expected to be maintained in automotive and performance coatings. The recovery in decorative will continue to be gradual," he stated.
Shares of Kansai Nerolac Paints Ltd closed at ₹227.89 on the NSE, down ₹6.28 or 2.68%, on February 3.
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(Edited by : Shoma Bhattacharjee)
