Event Type: Q1 FY 2026-27 Earnings Conference Call hosted by ICICI Securities Limited

Date and Time: Monday, 3rd August, 2026 at 17:00 hrs India Time

Purpose: To discuss Q1 FY 2026-27 Financial Results of the Company

Management Participants:

  • Mr. Pravin Chaudhari – Managing Director
  • Mr. Yash Ahuja – Chief Financial Officer
  • Mr. Jason Gonsalves – Director-Corporate Planning, IT and Materials

Moderator: Mr. Aniruddha Joshi from ICICI Securities Limited

Financial Period Discussed: Q1 FY 2026-27 (April-June 2026)

Financial Highlights (Standalone Basis):

  • Net revenue growth: 10.2%
  • PBDIT growth: 7.7%
  • PBT growth: 5.1%

Financial Highlights (Consolidated Basis):

  • Net revenue growth: 9.8%
  • PBDIT growth: 8.3%
  • PBT growth: 5.8%

Business Performance Highlights:

Decorative Business Strategy (6 pillars): New products, project business, construction chemicals, waterproofing and wood finish, branding and media spend, influencer program and network expansion

Decorative Performance:

  • High single-digit value growth in decorative segment
  • Services contributing mid-single-digit percentage to decorative business
  • PaaS present in 250+ cities
  • AID program in 45+ cities
  • Pragati program covers 65,000 painters
  • Project/institutional business: double-digit growth, 80+ cities reach
  • Added 1,700 dealers in Q1
  • Construction chemicals: double-digit growth
  • Premium wood finish: high single-digit growth
  • Retail stores: 186 NXTGEN Shoppe, 275 Shop in Shop, 385 Nerolac Paint+ zones

New Product Launches (Decorative):

  • Excel Everlast 20: 20-year warranty exterior paint
  • Excel Total Floor Coat: premium water-based exterior emulsion
  • Perma NoDamp NXT: fiber reinforced waterproofing coating

Industrial Performance:

  • Automotive segment: strong growth with focus on innovation
  • Performance Coating Liquids: very strong growth led by construction equipment, drum/barrels, coil coating
  • Powder Coatings: robust growth in auto ancillaries, ACs, electrical segments
  • Auto Refinish: flat growth

Media Campaigns:

  • Excel Everlast: 550M+ impressions, 52M YouTube views, 30M reel views
  • No Heat: 210M impressions in heat-affected geographies

Capacity Expansion:

  • INR601 crores capex for automotive, powder coating and resin at Sayakha, Bawal and Hosur
  • Total capacity addition: 66,000 KL per year
  • Resin capacity: ~10,000 metric tons per year
  • Timeline: Over 2+ years

ESG Achievements:

  • EcoVadis bronze medal for third consecutive year (top 18% of companies)
  • CRISIL ESG Ratings: strong category, ranked 16 out of 548 chemical companies
  • CDP: low-risk rating

Risks and Outlook:

  • Risks: Geopolitical conflicts, supply chain disruptions, high commodity prices, rupee depreciation
  • Outlook: Sustained demand in infrastructure/construction, buoyant automotive demand, inflationary environment may impact consumer sentiment

Management Commentary Key Points:

  • Decorative volume growth lower than industry due to premium mix prioritization
  • Competition intensity remains high across all segments
  • Industrial margins under pressure due to delayed price increases (expected 5% increase)
  • Q2 expected to see additional 3% decorative pricing and 3-5% industrial pricing
  • Margin guidance maintained at 13-14% for FY27 with medium-term target of 14%+
  • Normal annual capex: INR150-200 crores
  • Employee Value Proposition initiative focused on talent retention and attraction

Market Share Strategy:

  • Maintain decorative market position
  • Target #1 position in non-auto industrial business within 2 years

Additional Notes Section

Attachment: Transcript of the Conference Call enclosed

Compliance: The conference call was in the nature of a group call as per Regulation 30(6) of SEBI LODR Regulations, 2015

Financial Data: Limited financial data was disclosed in the announcement (growth percentages only)