Earnings Update: Kansai Nerolac Paints Limited (NSE:KANSAINER) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts

Last week saw the newest quarterly earnings release from Kansai Nerolac Paints Limited (NSE:KANSAINER), an important milestone in the company's journey to build a stronger business. Results were roughly in line with estimates, with revenues of ₹20b and statutory earnings per share of ₹14.12. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the consensus forecast from Kansai Nerolac Paints' 13 analysts is for revenues of ₹81.9b in 2026. This reflects a credible 4.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dive 36% to ₹9.10 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹82.4b and earnings per share (EPS) of ₹8.97 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for Kansai Nerolac Paints

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹275. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Kansai Nerolac Paints, with the most bullish analyst valuing it at ₹330 and the most bearish at ₹212 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 8.1% growth on an annualised basis. That is in line with its 9.3% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 13% annually. So although Kansai Nerolac Paints is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Kansai Nerolac Paints' revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹275, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Kansai Nerolac Paints going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Kansai Nerolac Paints (1 is significant) you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.