Financial Performance Highlights

Standalone Q2 FY27 Results:

  • Net revenue increased by 18.9% YoY
  • PBDIT increased by 4.9% YoY
  • PBT increased by 4.3% YoY

Standalone H1 FY27 Results:

  • Net revenue increased by 14.2% YoY
  • PBDIT increased by 5.8% YoY
  • PBT increased by 4.0% YoY

Consolidated Q2 FY27 Results:

  • Net revenue increased by 18.6% YoY
  • PBDIT increased by 4.1% YoY
  • PBT increased by 3.6% YoY

Consolidated H1 FY27 Results:

  • Net revenue increased by 14.0% YoY
  • PBDIT increased by 6.6% YoY
  • PBT increased by 4.9% YoY

Business Segment Performance

Decorative Business Strategy & Performance

  • Six-pillar strategy: new products, project business, construction chemicals, waterproofing and wood finish, branding and media spend, influencer program, and network expansion
  • Retail services contributing to decorative business with mid- to high-single-digit growth
  • Paint as a Service (PaaS) present in 250+ cities
  • AID Connect in more than 45 important cities
  • Pragati program covered more than 90,000 painters in H1 FY27
  • Projects and institutional business recorded double-digit growth with geographical reach extending to more than 80 cities
  • Added 3,000+ dealers in the network with double-digit distribution growth
  • Construction chemicals and waterproofing recorded double-digit growth
  • Premium wood finish segment grew at healthy pace through rated contractors' engagement
  • NXTGEN stores: 190+ across India
  • Shop-in-shop stores: 270+
  • Paint zone stores: 490+ at H1 end

Industrial Business Performance

Automotive Coatings:

  • Witnessed robust growth in passenger vehicles, two and three-wheeler, and commercial vehicle segments
  • Strategy focused on accessibility, global technology tie-ups, innovation, new business (water-based, high solids, low-bake), and new segments (seam sealers, underbody black, alloy wheels, PT, booth chemicals)

Performance Coatings (Liquid):

  • Liquid segment witnessed very robust growth
  • Strong growth in construction equipment and infrastructure segment
  • Growth strategy centered around premiumization, new technologies, and dealer network expansion

Performance Coatings (Powder):

  • Powder coating segment witnessed strong growth
  • All segments witnessed strong growth, with top performers being auto ancillary and construction equipment
  • Growth strategy focused on premiumization, new technology, and maintaining high market share

Auto Refinish:

  • Witnessed good growth but mix deteriorated
  • Premium PU segment delivered notable body shop wins and remains on track to achieve annual target
  • Customer base expanded significantly

New Product Launches

Decorative New Products:

  • Excel Everlast 20: India's first exterior paint with 20-year warranty, crack bridging up to 2mm
  • Excel Total Floor Coat: Premium water-based exterior emulsion for floor tiles and cement surfaces
  • Perma NoDamp NXT: High-strength fiber-reinforced elastomeric liquid-applied waterproofing coating
  • Nova 2-in-1: Primer suitable for both interior and exterior application

Industrial New Products:

  • Wet-on-wet seam sealer and underbody coating system
  • Lead-free TSA bright red technology for three-wheelers
  • Premium clear coat systems for passenger vehicles
  • Next-generation PU clear coat for two-wheeler OEM
  • Anti-rust clear technology for tractor applications
  • Water-based polyurethane dispersion coating for pump applications
  • Fluoropolymer-based coating for bullet train station projects
  • Coil coating primer solutions for aluminium composite panels
  • Metallic brown powder coating for fan segment
  • Super durable anodic bronze coatings for architectural applications

Marketing & Brand Initiatives

  • TNPL activation in Tamil Nadu through principal sponsorship of Madurai Panthers
  • Noor-e-Kashmir campaign celebrating architectural heritage of Kashmir
  • Focused contractor engagement program
  • Digital marketing initiatives across all platforms
  • Won e4m Real-Time Programmatic Awards 2026 in gamification and advertising
  • Won ABBY Awards 2026: one Grand Prix, one gold, six silver, and three bronze

Manufacturing & ESG Accolades

  • Hosur plant won Golden Peacock Award for Energy Efficiency
  • Awarded bronze medal in EcoVadis 2026 for third consecutive year (top 18% companies)
  • Recognized in strong category by CRISIL ESG Ratings 2026
  • Water positive status
  • Committed to emission reduction and green energy

Subsidiary Performance

  • Nepal subsidiary: 20% growth with healthy profit improvement
  • Bangladesh subsidiary: facing issues with both top line and bottom line
  • Sri Lanka operations: closed
  • Nerofix (adhesives business): double-digit revenue growth but profitability impacted due to VAM price increase and inventory carry
  • Waterproofing business: growth upward of 30%
  • Construction chemicals: growth upward of 60%-70% on small base

Management Commentary & Outlook

Risks:

  • Continued West Asia tensions leading to supply chain disruption and market uncertainty
  • Sustained high crude oil and derivative prices coupled with currency volatility exerting pressure on input cost and procurement planning
  • Current crude oil price at $92/bbl

Outlook:

  • Demand conditions remain healthy as per RBI
  • Macro indicators point to continuing activity across construction, mobility, and broader domestic demand
  • Automotive demand continues buoyant, driven by new launches and inventory buildup for festive period
  • Consumer sentiment on discretionary spend may get impacted due to inflationary environment

Margin Outlook:

  • Input cost inflation upwards of 25%
  • Price increases of 7-8% secured from industrial OEMs effective April 1/June 1, 2026
  • Further price discussions ongoing for select categories
  • Target sustainable EBITDA margin range of 13-14%
  • Expect to reach target margins by Q4 FY27
  • Sequential margin improvement expected quarter-on-quarter

Competitive Environment:

  • Tremendous competition intensity across regions in decorative business
  • Competition affecting all stakeholders including dealers, painters, contractors, architects
  • Industrial business seeing increased competition as players balance decorative competition

Conference Call Participants

Management Team:

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

Moderator: Mr. Aniruddha Joshi - ICICI Securities Limited

Analysts Participating:

  • Aditya Bhartia from Investec
  • Pratik from HSBC
  • Aniket from ICICI Securities