Earnings Call Transcript
INDIGOPNTS · price
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Indigo Paints reported Q3 FY26 standalone revenue of INR 338.9 crores, up 3.5% year-on-year, with EBITDA margin expanding sharply from 17.5% to 19.4% and profit after tax (excluding a one-time gratuity provision of INR 5.85 crores) growing 11.2% to INR 40.5 crores. The quarter was weak in October due to delayed monsoon withdrawal and an early Diwali, but the company posted double-digit value growth for three straight months from November through January, signalling demand recovery. For the first nine months of FY26, revenue rose 2.4% to INR 932.2 crores with EBITDA up 6.4% at INR 155 crores and gross margins holding steady near 47.1%. Subsidiary Apple Chemie grew 31.5% in the quarter with a new sealant plant in Nagpur starting production and export opportunities being explored. Management said it plans to deploy its industry-leading gross margins into higher trade discounts to drive outsized sales growth without hurting EBITDA, but acknowledged that the new water-based plant at Jodhpur (now delayed to June 2026) will temporarily pressure PAT via depreciation.
Margin expansion, three consecutive months of double-digit growth, and aggressive distribution push are positive signals for shareholders, though PAT margins will face short-term depreciation headwinds as the Jodhpur plant comes online. Investors should watch Q4 FY26 and FY27 for sustained demand revival and execution of the growth-back-to-20% strategy.