Kansai Nerolac Paints (KNPL IN) – Q2FY26 Result Update – Deco paints revival key to re-rating – Accumulate
Published on 04 Nov 2025
KNPL plans to maintain its decorative market share led by 1) Innovations and new launches under Paint + initiatives (10% of sales) 2) distribution improvement in Nextgen Nerolac Shoppe 3) rising scale and focus on projects business and 4) customer loyalty and influencer program. Outlook in non-auto industrials remains positive led by strong infra investments (Infra, Railways, marine etc.) and Powder coatings (positive outlook for durables).
We expect 8/9% volume growth and 70bps margin expansion over FY26-28. We estimate a CAGR of 7% in sales and 8.2% in PAT over FY26-28. We value the stock at 26xSep27 EPS (No change) and assign a target price of Rs265 (Rs272 earlier). Retain Accumulate.
