Indigo Paints reported sustained and resilient growth for Q3 FY’26, delivering double-digit value growth for three consecutive months (Nov ’25 to Jan ’26). Standalone revenue grew 3.5% Y-o-Y to INR338.9 crores, with EBITDA margin expanding from 17.5% to 19.4%. The company emphasized strong performance in premium product mixes and rigorous cost management, offsetting initial seasonal headwinds.
Q3 FY’26 Financial Highlights
Indigo Paints reported a resilient performance for the quarter ending December 31, 2025, despite a temporary setback in October due to delayed monsoons and an early Diwali. The management noted double-digit growth in November and December, which offset the early headwinds.
Standalone Performance
- Revenue from operations stood at INR338.9 crores, marking a 3.5% Year-on-Year (Y-o-Y) growth.
- Gross margins were sustained at 47.1%.
- EBITDA margin significantly improved to 19.4% (up from 17.5% last year).
- Absolute EBITDA reached INR65.6 crores, a 14.5% Y-o-Y increase.
- Excluding a one-time gratuity provision of INR5.85 crores, PAT was INR40.5 crores, reflecting an 11.2% absolute growth.
Consolidated Performance
On a consolidated basis, the results showed robust expansion:
- Consolidated revenues reached INR358.8 crores (4.7% Y-o-Y growth).
- EBITDA grew significantly by 19.5% to INR68.3 crores, with an EBITDA margin of 19%.
- Consolidated PAT grew 16.4% to INR41.7 crores (excluding exceptional items).
Subsidiary and Operational Insights
The subsidiary, Apple Chemie, demonstrated stellar growth, recording Q3 revenues of INR20 crores, a 31.5% increase over the previous year, benefiting from infrastructure development spends.
Product Mix and Investment Focus
Management detailed shifts in the product portfolio:
- The premium end of emulsions has seen significant, continuous rising share over the last two years.
- Waterproofing products now account for close to 7% of top line, up from nearly zero two years ago.
- The category of enamels and wood coatings led Q3 growth with 18.9% value growth.
- Advertising spend (A&P) as a percentage of revenue has declined to 5.87% over the last 9 months, as the focus shifts to direct influencer engagement over traditional ATL spend.
Capex and Future Outlook
Indigo Paints has commissioned its new solvent-based plant in Jodhpur. The new water-based plant at Jodhpur, with a 90,000 kiloliters per annum capacity, is expected to commence production in June 2026. Management stated that this expansion marks the end of major Capex for the next 4 to 5 years (till FY ’29).
The outlook is optimistic, with management expecting the robust momentum seen in the last three months to carry into Q4 and position the company strongly for FY ’27, anticipating a return to 20% growth next fiscal year.
Source: BSE
