Kansai Nerolac Paints to Sell Entire 60% Stake in Sri Lankan Subsidiary

Kansai Nerolac Paints announced on December 11, 2025, that its board has approved the sale of its entire 60% stake in Kansai Paints Lanka (Private) Limited. The stake will be sold to Atire (Private) Limited, a Sri Lanka–based entity.

The company will execute a formal agreement for the transaction, after which Kansai Paints Lanka will no longer remain a subsidiary. The exchange filing clarified that Kansai Paints Lanka is not classified as a material subsidiary.

Details Of the Transaction

The approved transaction involves divesting 60% of the total equity share capital of Kansai Paints Lanka (Private) Limited. The buyer, Atire (Private) Limited, is a Sri Lankan entity.

Kansai Nerolac stated that an agreement for the sale will be executed shortly. Once completed, the Sri Lankan arm will cease to be part of Kansai Nerolac’s consolidated operations.

Subsidiary Classification and Compliance

According to the company’s filing, Kansai Paints Lanka does not qualify as a material subsidiary under regulatory norms. As a result, the sale will not trigger additional compliance requirements related to material subsidiary provisions.

The company has stated that all required approvals will be obtained. It also confirmed that documentation will be completed in accordance with applicable laws.

Recent Financial Performance

Kansai Nerolac reported its September quarter (Q2 FY26) results last month. Consolidated net sales stood at ₹1,954.18 crore, marginally higher than ₹1,951.37 crore in the same quarter last year.

Net profit rose 9.9% year-on-year to ₹134.93 crore, while EBITDA increased 2.1% to ₹243.69 crore. These figures reflect stable revenue performance and improved profitability during the quarter.

Impact On Operations

The divestment of Kansai Paints Lanka is expected to streamline Kansai Nerolac’s international portfolio. Although the Sri Lankan unit contributed to overseas operations, its non-material classification suggests minimal impact on consolidated financials.

The move aligns with the company’s strategy to optimise its global footprint. Kansai Nerolac continues to prioritise growth in India and other key strategic markets.

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Conclusion

Kansai Nerolac’s decision to sell its entire stake in Kansai Paints Lanka marks a significant move in its international restructuring strategy. The transaction, once formalised, will result in the Sri Lankan subsidiary exiting the group structure.

The company maintains a strong domestic presence. It has reported improved profitability in Q2 FY26.

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