Kansai Nerolac Paints Limited announced its audited standalone and consolidated financial results for the quarter and financial year ended 31st March 2026. The statutory auditors, S R B C & CO LLP, issued an unmodified audit opinion on the financial results. The Board of Directors recommended a dividend of 250% (₹2.50 per share) for FY26, compared to 375% (₹3.75 per share) in FY25, which included a special dividend of 125% (₹1.25 per share).

Q4 FY26 Standalone Financial Performance

For the quarter ended 31st March 2026, the company reported standalone net revenue from operations of ₹1873.44 Crores, a growth of 7.6% year-on-year. EBITDA stood at ₹215.1 Crores, growing 21.0%, while Profit Before Tax (PBT) before exceptional items was ₹184.73 Crores, up 12.8%. The following table summarises the key standalone quarterly metrics:

Full-Year FY26 Standalone Performance

For the full financial year, standalone net revenue was ₹7739.23 Crores, a growth of 3.2% over the previous year. EBITDA for the year was ₹986.2 Crores, a growth of 1.2%. PBT before exceptional items was ₹898.91 Crores, a de-growth of 0.9%. Standalone net profit after tax stood at ₹619.85 Crores, compared to ₹1021.24 Crores in FY25, which benefited from exceptional gains. The key full-year standalone metrics are:

Standalone Balance Sheet & Working Capital

As at 31st March 2026, standalone total assets stood at ₹8538.59 Crores, compared to ₹7969.24 Crores in the prior year. Total equity increased to ₹6695.77 Crores from ₹6366.23 Crores. Net working capital improved to ₹41166 Millions (₹4116.6 Crores) from ₹38864 Millions (₹3886.4 Crores) in the previous year. Inventories decreased to 14929 Millions (₹1492.9 Crores) from 16097 Millions (₹1609.7 Crores), while trade receivables increased to 13798 Millions (₹1379.8 Crores).

Capital Expenditure and Dividend History

The company reported a total capital expenditure of ₹174.1 Crores for FY26, comprising ₹54.9 Crores on projects and ₹119.1 Crores on normal capex. This is lower than the ₹349.6 Crores spent in FY25. The dividend payout history over the last five years shows a payout of 250% (₹2.50 per share) for FY26, following 375% for both FY24 and FY25.

Consolidated Financial Results

On a consolidated basis, the Group reported revenue from operations of ₹8051.91 Crores for FY26, compared to ₹7822.97 Crores in FY25. Consolidated profit for the period stood at ₹575.84 Crores for FY26, against ₹1109.33 Crores in FY25. Total consolidated assets as of 31st March 2026 stood at ₹8711.11 Crores. The key consolidated full-year metrics are:

Exceptional Items

Exceptional items for FY26 amounted to ₹(60.70) Crores on a standalone basis and ₹(63.15) Crores on a consolidated basis. The breakdown of standalone exceptional items is as follows:

Management Commentary

Managing Director Pravin Chaudhari noted that the revival in demand seen in Q3 continued in Decorative, driven by new products and Construction Chemicals. Industrial demand was robust, led by Automotive. Raw material costs rose sharply during the quarter due to the West Asia crisis and rupee depreciation, prompting price increases to offset inflationary impact.

Kansai nerolac paints Limited has received a penalty confirmation of Rs 29,26,459 under Central Goods and Services Tax (CGST) Rules for partial disallowance of Input Tax Credit (ITC). The company disclosed this development through a regulatory filing dated 24th April, 2026, pursuant to SEBI listing regulations.

Order Details and Authority

The Commissioner (Appeals), CGST & CX Appeal, Allahabad passed the order under Rules 113(1) & 115 of CGST Rules, 2017. The company received the direction on 23rd April, 2026, confirming the penalty amount.

Nature of Violation

The penalty relates to a demand confirmed in appeal on account of partial disallowance of Input Tax Credit claimed by the company during FY 2020-2021 for the State of Uttar Pradesh. The disallowance pertains to ITC claims made by the company during that financial year.

Company's Response and Next Steps

Kansai Nerolac Paints has indicated that it possesses relevant records and legal precedence to support its claim. The company plans to file a further appeal against the said order before the GST Tribunal to contest the penalty.

Financial Impact Assessment

According to the company's disclosure, there is no material impact on financials, operations or other activities resulting from this penalty. The company has assessed that the Rs 29,26,459 penalty amount does not significantly affect its overall business operations.

The disclosure was made in compliance with SEBI listing regulations and relevant circulars, ensuring transparency with stakeholders regarding regulatory developments affecting the company.