KANSAI PAINT CO.,LTD.
4613・Prime Market・Chemicals
Business
Kansai Paint Co., Ltd. is a paint and coatings specialist founded in 1918, forming a global group consisting of the company, 118 subsidiaries, and 22 affiliated companies. It covers a wide range of applications including Automotive Coatings, Industrial Coatings, Decorative Coatings, marine coatings, and protective coatings, and operates business across five reporting segments: Japan, India, Europe, Asia, and Africa. Consolidated net sales for FY2026 (ending March 2026) were ¥589,795 million, and the company has evolved into a truly global enterprise where the overseas sales ratio exceeds that of the domestic market. Major customers span a wide range of industries including automakers, construction companies, shipbuilders, and industrial product manufacturers, and the company conducts region-focused business built on local manufacturing and sales structures in each country.
Business Model
The company establishes manufacturing bases in each country, basing its operations on local production and local sales, while adopting indirect sales through franchised distributors and sales companies domestically. Royalty income linked to sales, based on technical assistance agreements with overseas subsidiaries (such as Kansai Nerolac Paints), is also one source of revenue. With a product portfolio diversified across five applications—automotive, industrial, decorative, marine, and protective—the company has a structure that secures stable earnings while limiting dependence on any specific market.
Company Strengths
Kansai Nerolac Paints Ltd., in which the company acquired shares in 1986, is a company listed on the Bombay Stock Exchange and a core subsidiary supporting the India segment's net sales of ¥138,358 million and segment profit of ¥13,566 million. Through the establishment of local manufacturing and sales systems, the company has a competitive advantage that allows it to directly capture domestic demand-driven growth in India.
The company has a sales structure diversified across five regions: Japan at ¥159,888 million, India at ¥138,358 million, Europe at ¥162,738 million, Asia at ¥68,064 million, and Africa at ¥51,748 million. The Africa segment has shown high growth, with segment profit up 45.7% year on year to ¥6,337 million, and regional diversification contributes to the stability of business performance and the diversification of growth opportunities.
The company has a sales composition diversified by application: Automotive Coatings at ¥178,421 million, Industrial Coatings at ¥176,151 million, Decorative Coatings at ¥139,367 million, Marine & Protective Coatings at ¥60,328 million, and Other at ¥35,525 million. While maintaining resilience against demand fluctuations in specific applications, the track record of accumulating technical capabilities in each field serves as a differentiating factor from competitors.
ENVALITH's Perspective
Performance Trend
Revenue increased 40.7% over five periods, from ¥419,190 million in FY2022 to ¥589,795 million in FY2026, but growth has decelerated to a 0.2% year-on-year increase over the most recent two periods. Operating profit peaked at ¥51,595 million in FY2024, followed by ¥52,050 million in FY2025 and ¥49,726 million in FY2026, reflecting a declining trend. Net income of ¥31,641 million in FY2026 fell 17.4% year on year, due to the disappearance of the previous period's one-time extraordinary gains (gain on sale of fixed assets of ¥12,197 million and gain on sale of investment securities of ¥7,023 million), compounded by one-time extraordinary losses including early retirement incentive payments of ¥2,059 million, impairment loss of ¥1,069 million, and loss on revision of retirement benefit plan of ¥627 million. As external factors, the yen's appreciation weighed on the India segment's foreign currency translation, along with a slowdown in the Chinese real estate market and a decline in automobile production volumes in Southeast Asia, acting as headwinds. On the other hand, foreign exchange gains of ¥5,268 million and equity in earnings of affiliates of ¥4,160 million (up from ¥1,829 million in the previous period) pushed ordinary profit up 11.4% to ¥54,713 million.
Growth Strategy
Under the 18th Medium-Term Management Plan, the company is advancing structural reforms, DX, and human capital strengthening, aiming for net sales of ¥610,000 million in FY2027 (ending March 2027)
In Europe, the structural reform project "True Color" is being implemented in phases starting FY2026, promoting withdrawal from and downsizing of low-profitability, non-core businesses and reorganizing production, sales, and administrative functions. Approximately ¥7,000 million in extraordinary losses is expected in FY2027 (ending March 2027), but the aim is to improve mid- to long-term profitability. Total cost reduction efforts also continue in Japan and Asia.
As one of the key policies of the 18th Medium-Term Management Plan, the company is strengthening product development capabilities and promoting digital transformation. Software assets increased substantially from ¥3,362 million in the previous fiscal year to ¥15,019 million, reflecting the acceleration of DX investment.
The Africa segment achieved high growth in FY2026 (ended March 2026), with net sales of ¥51,748 million (up 9.1% year on year) and segment profit of ¥6,337 million (up 45.7% year on year). Capital expenditure is also being actively increased (¥1,441 million in FY2026, ended March 2026). In India, the company is capturing the benefits of GST tax cuts in the automotive sector while waiting for demand recovery in the decorative sector.
In FY2026 (ended March 2026), the annual dividend was significantly increased from ¥50 to ¥110, achieving a dividend payout ratio of 61.2% and a dividend-to-net-assets ratio (DOE) of 6.8%. The annual dividend of ¥110 is expected to be maintained in FY2027 (ending March 2027) as well (with a projected payout ratio of 71.7%). The equity ratio improved to 37.4%, and the ratio of interest-bearing debt to operating cash flow improved from 6.4x to 4.2x.
Last updated: July 19, 2026