Indigo Paints LimitedChemicalsINDIGOPNTS
Q1 FY27 concall · earnings callIndigo Paints Limited
Indigo Paints posted first double-digit revenue quarter in almost two years with volume growth across all categories and a four-year high Q1 EBITDA margin, while closing its major capex cycle and pivoting to more aggressive top-line investment.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Standalone revenue from operations | ₹350 Cr | growth of 18.7% | |
| Standalone EBITDA | ₹61.9 Cr | growth of 42% | |
| Standalone EBITDA margin | 17.7% | from 14.8% to 17.7% | |
| Standalone PAT | ₹42.4 Cr | growth of 60.7% | |
| Standalone PAT margin | 11.8% | from 8.8% to 11.8% | |
| Consolidated revenue | ₹369.7 Cr | Y-o-Y growth of 19.7% | |
| Standalone gross margin | 45.3% | slightly lower YoY |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹342.62 Cr-3.2% YoY+14.4% QoQ | ₹35.85 Cr-4.5% YoY+61.1% QoQ | ₹7.56-3.3% YoY+58.8% QoQ |
| Q2 FY25 | ₹299.53 Cr+7.4% YoY-3.7% QoQ | ₹22.26 Cr-12.1% YoY-16.5% QoQ | ₹4.76-10.7% YoY-13.5% QoQ |
| Q1 FY25 | ₹310.96 Cr+7.8% YoY-19.2% QoQ | ₹26.65 Cr-15.5% YoY-51% QoQ | ₹5.50-15.6% YoY-51.2% QoQ |
| Q4 FY24 | ₹384.88 Cr— YoY+8.8% QoQ | ₹54.44 Cr— YoY+45% QoQ | ₹11.28— YoY+44.2% QoQ |
| Q3 FY24 | ₹353.77 Cr— YoY+26.8% QoQ | ₹37.55 Cr— YoY+48.3% QoQ | ₹7.82— YoY+46.7% QoQ |
TL;DR
- Standalone revenue was INR350 crores with growth of 18.7% on double-digit volume and value growth across all 4 product categories, ahead of paint sector
- Standalone EBITDA was INR61.9 crores with growth of 42% and margin at 17.7%, and PAT was INR42.4 crores with growth of 60.7%, aided partly by mark-to-market treasury gain
- Raw material prices spiked in March on Iran war disruption then retreated but remain elevated and volatile; price increases protected margins
- Jodhpur water-based plant of 90,000 kiloliters per annum to start trial production in second half of August, ending principal capex cycle
- Subsidiary Apple Chemie revenue was INR19.7 crores with top line growth of more than 40% but margin compressed by B2B pass-through limits and high-cost inventory
Said on the call
“From here, incremental revenue should translate into free cash flows at a considerably better rate than over the last 5 years.”
From the Q&A
| Topic | What management said |
|---|---|
| Chief Business Officer strategy | Focus on juicing existing network of around 19,400 dealers via micro-segmentation, category-specific inputs across brand, influencer and trade, and field manpower; brand building to step up in Q2 on traditional and digital after Q1 timeout. |
| Growth gap vs market leader | Management said steep unprecedented price hikes structurally benefit the market leader via pre-buying, and conceded bottom line growing faster than top line means it was not aggressive enough and gap versus industry must widen. |
| IPL advertising timeout | IPL opt-out was due to Iran war supply-chain uncertainty and inability to ensure supply, not media costs, rival activity or Dhoni playing; funds redirected to painter engagement and digital and will be redeployed. |
| July trading and Q2 margins | July maintained momentum at or above Q1 with no overstocking in Indigo channel; Q2 margin outlook fuzzy due to mixed low-cost and high-cost inventory and seasonally inferior monsoon mix, better viewed on six-month basis. |
| Premium and wood coatings | No gap in emulsion portfolio versus competition, premium share gain is slow brand-equity led work with influencers; new phased launches planned in two-pack polyurethane wood coatings, not positioned as differentiated products. |
| Competitive intensity | No visible change from JSW Paints acquisition of AkzoNobel as they operate separately, and Birla Opus disruption has stabilized into base; sector remains highly competitive. |
Guidance
- Pursue accelerated top line growth even if at marginal cost to bottom line, with more aggressive spends on trade and influencer engagement in Q2
- Maintain full-year brand investment commitment and assess A&P intensity on an annual basis after strategic timeout from IPL advertising in Q1
- Expect trial production at Jodhpur water-based plant in the second half of August ahead of festive season, with no significant capex requirements for the next 3 years
- Expect Apple Chemie gross margins to improve through the second quarter and return to normal level by Q3, and propose to acquire a further 11% stake to take holding up to 62%
- No business case for further price increases as of now; possible price drop post Diwali if input prices stabilize with offsetting reduction in trade discounts
- Launch phased range of two-pack polyurethane wood coatings during September and October
Source
Summary written from the transcript filed by Indigo Paints Limited for the call held on 14 Aug 2026; published 10 Sept 2026, 15:35 IST.
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