1. Opening Hook
Remember when your building’s paint started peeling faster than your patience? Well, Kansai Nerolac just had a quarter that didn’t peel… it just stayed flat. Markets rained harder than the monsoon, competition kept throwing shade (literally), and management kept chanting “premiumization” like it’s a magic spell that might eventually work.
As theDhammapadawisely puts it,“Drop by drop is the water pot filled.”Kansai too seems to be filling… slowly… very slowly. Stick around, the real color emerges later. 🎨
2. At a Glance
- Revenue up 0.4%– Technically “up,” practically a rounding error.
- PBDIT down 1.5%– Costs said “surprise!” and margins obeyed.
- PBT down 4%– Profit took a festive-season vacation.
- Decorative slightly negative– Blame clouds, competition, and consumer mood.
- Industrial low single-digit growth– Auto demand saved some face.
- Subsidiaries mixed– Nepal good; Sri Lanka & Bangladesh said “not today.”
3. Management’s Key Commentary (Raw Quotes + Translations)
Quote:“Our value growth was slightly negative.”(Translation: Growth went missing; please file a complaint at the nearest police station.)
Quote:“Paint+ products improved by 240 bps.”(Translation: We’re hanging on to premiumization like an MBA buzzword.)
Quote:“We added 2,500+ dealers.”(Translation: Dealers left for competition. We wooed them back with better snacks.)
Quote:“October was challenging due to early Diwali.”(Translation: Consumers painted their homes before we woke up.)
Quote:“We won’t get into low-margin products.”(Translation: Competitors can burn cash; we’ll just watch.) 😏
Quote:“Our backward integration strategy is selective.”(Translation: Others may build factories.
We believe in buying from people who already have them.)
Quote:“International markets remain challenging.”(Translation: Nepal okay, Bangladesh & Sri Lanka said ‘no thank you’ again.)
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Change | One-line Analysis |
|---|---|---|---|
| Revenue | +0.4% | Flat | Growth slower than paint drying. |
| PBDIT | -1.5% | Decline | Margins slipped, but not disastrously. |
| PBT | -4% | Down | Profitability still playing hide-and-seek. |
| Decorative Growth | Slightly negative | Weak | Monsoon washed demand. |
| Industrial Growth | Low single-digit | Muted | Auto segment saved grace. |
| Dealer Additions | 2,500+ | Strong | Distribution hustle is real. |
Post-table riff:Revenue flat, costs moody, margins shy, and festive season timing messed with visibility. But dealerships grew—so at least someone believes in them.
5. Analyst Questions – The Spicy Bits
Q:Why are Decorative numbers flat?Mgmt:Monsoon + short festive window + competition.(Translation: Nature + rivals → 1, Kansai → 0.)
Q:Gross margin outlook?Mgmt:Crude benign, rupee weak, TiO₂ duty stalled.(Translation: Fingers crossed, prayers offered.)
Q:Are dealers returning from the new entrant?
