EXHIBIT 11
                                   COMPUTATION OF EARNINGS PER SHARE

            
            

            LILLY INDUSTRIES, INC.
            (In thousands, except per share data)

                                               Three Months Ended
                                             February 28 February 28
                                                1995        1994    
                                                    
            Primary:
             Average shares outstanding--
              Note A                           22,700      22,600          
             Net income                       $ 4,647     $ 3,141        
             Net income per common share--
              Note A                          $  0.20     $  0.14        
                                              =======     =======        

            Average shares outstanding--
             Note A                            22,700      22,600         
            Dilutive stock options based
             on treasury stock method
             using average market
             price--Note A                        600         620           
                                              -------     -------        
                                               23,300      23,220         

             Net income                       $ 4,647     $ 3,141        
             Net income per common
              and common equivalent
              share--Note A                   $  0.20     $  0.13        
                                              =======     =======        

            Fully diluted:
             Average shares outstanding--
              Note A                           22,700      22,600          
             Dilutive stock options based
              on the treasury stock
              method using the higher
              of quarter end or average
              market price--Note A                600         620            
                                              -------     -------        
                                               23,300      23,220

             Net income                       $ 4,647     $ 3,141        
             Net income per common







              and common equivalent
              share--Note A                   $  0.20     $  0.13        
                                              =======     =======        
            <FN>

            Note A--Share and per share amounts have been adjusted to reflect the
            three-for-two stock split distributed June 1, 1994.