Kansai nerolac paints Limited has announced the grant of 3,313 Restricted Stock Units (RSUs) to selected employees under its RSU Plan 2022. The Nomination and Remuneration Committee (NRC) of the company approved this grant on 3rd February, 2026, with the grant date scheduled for 15th February, 2026.

RSU Grant Details

The newly granted RSUs are exercisable into 3,313 equity shares of the company with a face value of Re. 1 each, fully paid-up. This grant is part of the RSU Plan 2022, which was originally approved by the Board of Directors on 14th September, 2022, and by shareholders on 25th October, 2022.

Current RSU Plan Status

The company provided comprehensive details about the overall status of its RSU Plan 2022. The plan demonstrates significant employee participation with substantial vesting and exercise activity.

Plan Structure and Terms

The RSU Plan 2022 operates under the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. Each RSU carries the right to be issued one equity share of the company upon exercise. The vested RSUs must be exercised within four years from the date of vesting while in employment, with specific provisions for separation from employment as outlined in the plan.

The RSUs will vest according to the vesting schedule approved by the Nomination and Remuneration Committee. The pricing formula allows employees to acquire shares at face value as on the date of exercise, providing an attractive employee benefit structure.

Regulatory Compliance

This disclosure was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated 30th January, 2026. The announcement reflects the company's commitment to transparent communication with stakeholders regarding employee benefit programs.

Kansai nerolac paints Limited announced its unaudited financial results for the third quarter ended December 31, 2025, following a Board meeting held on February 3, 2026. The company reported revenue growth of 3.5% year-on-year, though profitability was impacted by exceptional charges related to new labour legislation and margin compression.

Financial Performance Overview

The company's standalone financial performance for Q3 FY26 demonstrated resilience in revenue generation despite market headwinds:

The EBITDA showed marginal growth at ₹247.28 crores year-on-year, but the EBITDA margin compressed to 13.00% from 13.46% in the corresponding quarter last year. The significant decline in net profit was primarily attributed to an exceptional charge of ₹44.72 crores related to the implementation of new Labour Codes by the Government of India.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company maintained steady revenue growth while facing margin pressures:

Segment Performance and Market Dynamics

Managing Director Pravin Chaudhari highlighted the contrasting performance across business segments. Industrial coatings registered strong growth during the quarter, primarily driven by the automotive sector. The positive impact of GST rate cuts implemented in late September contributed to improved demand across various Original Equipment Manufacturer (OEM) categories.

However, the decorative paints segment faced challenging conditions with subdued overall demand, compounded by a shorter festival season. Despite these headwinds, the company's internal initiatives helped achieve good growth in specific areas including Projects, Distribution, waterproofing, and Construction Chemicals.

Exceptional Items Impact

The company recorded an exceptional charge of ₹44.72 crores in Q3 FY26 due to the implementation of four Labour Codes notified by the Government of India on November 21, 2025. These codes consolidate 29 existing labour laws and resulted in increased gratuity and leave liability. The company assessed the financial implications based on legal opinion and guidance from the Institute of Chartered Accountants of India.

Market Outlook and Future Prospects

The domestic paint industry is estimated at approximately ₹77,500 crores as of March 2025. Growth momentum is expected to continue in Automotive and Performance Coatings segments, while recovery in Decorative paints is anticipated to be gradual. The company remains optimistic about long-term demand driven by infrastructure development, core sector growth, and expansion in automobile and real estate sectors.

Raw material prices remained stable during the quarter, though the period witnessed significant volatility in foreign exchange rates and geopolitical uncertainty, which could impact future operations.