Indigo Paints reported robust financial results for Q3 FY26, showcasing sustained growth alongside enhanced profitability across key metrics. Standalone revenue grew 3.5% YoY to Rs. 338.9 Cr, while EBITDA margin expanded significantly to 19.4%. The company maintained its industry-leading Gross Margin at 47.1% and achieved substantial A&P expense reduction, demonstrating operational efficiencies. Furthermore, the presentation detailed aggressive progress in network expansion and the strategic development through its 2.0 strategy.
Financial Performance Highlights (Standalone Q3 FY26)
Indigo Paints demonstrated strong operational performance in the third quarter of FY26. Revenue from Operations reached Rs. 338.9 Cr, marking a 3.5% Year-over-Year (YoY) growth. Profitability metrics saw significant improvement:
- Gross Margin remained industry-leading at 47.1% (compared to 47.2% in Q3 FY25).
- EBITDA Margin sharply improved to 19.4%, with EBITDA reaching Rs. 65.6 Cr (14.5% YoY growth).
- PAT Margin stood at 11.8%, as PAT (excluding exceptional items) grew 11.2% YoY to Rs. 40.5 Cr.
- Advertising & Promotion (A&P) expense as a percentage of revenue reduced notably to 5.6% from 8.2% in Q3 FY25.
Nine Months Ended FY26 Snapshot
For the nine months ended December 31, 2025, the company sustained its trajectory:
- Revenue from Operations was Rs. 932.2 Cr (2.4% YoY Growth).
- EBITDA Margin improved to 16.6%, with EBITDA at Rs. 155.0 Cr (6.4% YoY Growth).
- PAT Margin reached 9.8%, with PAT at Rs. 92.4 Cr (6.2% YoY Growth).
- A&P expenses reduced to 5.9% of revenue from 7.0% in the previous corresponding period.
Consolidated Quarterly Trends
On a consolidated basis, Q3 FY26 also showed positive momentum:
- Sales grew 4.7% to Rs. 358.8 Cr.
- EBITDA improved by 19.5% to Rs. 68.3 Cr, resulting in a 19.0% margin.
- PAT increased by 16.4% to Rs. 41.7 Cr, achieving an 11.5% margin.
Financial Analysis: Key Drivers
The improved profitability was driven by several strategic factors:
- Sales Traction: Growth moderated in October 2025 but regained double-digit momentum since November 2025.
- Gross Margin Strength: Maintained industry leadership, aided by raw material prices reaching pre-COVID levels, allowing for increased discounts.
- Cost Management: Significant reduction in A&P expense proportion and better cost management aided EBITDA expansion.
- Exceptional Item: PAT figures exclude an exceptional provision of Rs. 5.85 Cr made for gratuity due to a draft Labour code.
Indigo Paints 2.0 Strategy: Growth Drivers
The company continues to execute its five-pillar strategy:
- Product Innovation: Developing differentiated products and expanding the portfolio via inorganic growth.
- Geographic Expansion: Focusing on growing in Tier I and II cities and augmenting engagement with painters and contractors. Network expansion is ongoing, reaching 19,134 active dealers and 55 depots.
- Capacity Augmentation: The new water-based plant in Jodhpur (90,000 KLPA capacity) is in the final stages, with commissioning anticipated in June 2026.
- Brand & Marketing Focus: Increasing sales force, enhancing brand promotion, and deepening digital engagement, with A&P spend as a percentage of revenue declining to 5.87% for 9M FY26.
- Expansion into Adjacencies: Foray into non-decorative segments like construction chemicals and waterproofing through Apple Chemie India Ltd. Apple Chemie showed stellar growth, with revenues reaching Rs. 47.6 Cr in 9M FY26.
Sustainability and Outlook
ESG initiatives include transitioning to renewable energy (330 kW solar panels commenced at Kochi Factory) and community service programs, such as painting over 200 government schools. For the outlook, the company expects sales traction to continue, RM prices to remain benign, A&P expense percentage to decline further, and EBITDA margins to improve in FY26.
Source: BSE
