India's Kansai Nerolac posts profit fall on higher costs, monsoon-related demand dip

Kansai Nerolac Paints

04/08/2025 14:20

Aug 4 (Reuters) - India's Kansai Nerolac Paints KANE.NS reported a 4.3% fall in first-quarter profit on Monday, hurt by an uptick in costs and as monsoons dampened demand for decorative paints.

The company, owned by Japan's Kansai Paint Co 4613.T, said its consolidated net profit for April-June fell to 2.21 billion rupees ($25.23 million).

Expenses grew 3.2%, overshadowing an 1.3% growth in revenue.

For further earnings highlights, click here

KEY CONTEXT

Indian paint-makers have been grappling with intensifying competition from new entrants and sluggish retail demand for several quarters, as shoppers switched to cheaper labels or held off non-essential spending.

The April-June quarter, which overlaps with India's monsoon season, is typically slow for paint-makers as damp weather pushes clients into deferring projects.

Demand for decorative paints showed signs of revival but an early monsoon impacted sales during the later part of the quarter, Managing Director Pravin Chaudhari said.

Rival Akzo Nobel India AKZO.NS posted a quarterly profit fall earlier in the day, while larger peer Asian Paints ASPN.NS met its first-quarter estimates and signalled urban "green shoots" for retail demand.

PEER COMPARISON

Valuation (next 12 months)
Estimates(next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth(%)
Profit growth(%)
Mean rating
# of analysts
Stock to price target*
Div yield (%)
Kansai Nerolac Paints
KANE.NS
27.00
16.59
7.17
27.04
HOLD
13
0.88
1.00
Asian Paints
ASPN.NS
52.30
34.60
5.43
7.45
HOLD
34
1.02
1.02
Berger Paints India
BRGR.NS
49.32
30.86
8.79
10.24
HOLD
20
1.05
0.67
Akzo Nobel India
AKZO.NS
33.75
21.98
7.75
10.84
BUY
2
0.99
2.75

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

APRIL-JUNE STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 87.6090 Indian rupees

KANSAI NEROLAC-RESULTS/ https://tmsnrt.rs/4mj9YtY

 (Reporting by Aleef Jahan and Hritam Mukherjee in Bengaluru; Editing by Janane Venkatraman)

 ((aleefjahan.cs@thomsonreuters.com))