Kansai Nerolac Paints Limited has announced its decision to divest its entire stake in its Sri Lankan operations. The board of directors approved the sale of the company's 60% equity stake in Kansai Paints Lanka (Private) Limited during a meeting held on December 11, 2025.

Divestment Details

The transaction involves the complete exit from the Sri Lankan subsidiary through a sale to Atire (Private) Limited, a local Sri Lankan entity. The divestment covers Kansai Nerolac Paints' entire shareholding in the subsidiary.

Regulatory Compliance

The company has committed to fulfilling all regulatory requirements under SEBI Listing Regulations. Detailed information mandated under Regulation 30 of SEBI Listing Regulations, read with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, will be submitted to stock exchanges upon execution of the sale agreement.

Impact on Corporate Structure

Kansai Paints Lanka (Private) Limited is not classified as a material subsidiary of Kansai Nerolac Paints Limited. Following the completion of this divestment transaction, Kansai Paints Lanka will cease to be a subsidiary of the company, marking a complete exit from the Sri Lankan market operations.

The announcement was made in compliance with listing obligations and disclosure requirements for the mid-cap paints and varnish sector company.

Kansai Nerolac Paints , a leading player in the Indian paint industry, has recently outlined its financial objectives and capital expenditure plans during a conference call. The company has set ambitious targets for its EBITDA margins and shared insights on its growth prospects.

EBITDA Margin Targets

Kansai Nerolac has set clear goals for its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins:

The company's management expects to maintain margins above 13% for FY26, supported by favorable material costs.

Capital Expenditure Plans

Kansai Nerolac has announced significant capital expenditure plans:

• The company plans to invest over ₹200.00 crores for regular activities.
• This investment underscores Kansai Nerolac's commitment to growth and operational improvements.

Growth Prospects

The management of Kansai Nerolac Paints has expressed optimism about future growth:

• Q4 FY26 is expected to show improved growth compared to previous quarters.
• This positive outlook applies to both decorative and industrial segments of the company's business.

The company's strategic focus on maintaining healthy EBITDA margins while investing in regular activities suggests a balanced approach to financial management and growth. As the paint industry continues to evolve, Kansai Nerolac's clear financial targets and investment plans may position it to capitalize on emerging opportunities in both decorative and industrial segments.

Investors and market observers may want to keep a close eye on Kansai Nerolac's performance in the coming quarters to see how well the company executes its plans and achieves its stated financial objectives.