Indigo Paints Sees Revenue Rise Amidst Market Recovery

Indigo Paints' consolidated revenues rose by 4.7% to ₹359 crore as of February 19, 2026. This growth was primarily fueled by a 31.5% increase in its subsidiary, Apple Chemie, which reached ₹20 crore. The company's standalone business also contributed positively with a 3.5% growth, totaling ₹339 crore.

While emulsions experienced a 3.4% volume decline, other segments like enamels and wood coatings saw robust growth of 20.2% in volume. Putty and cement paints increased by 2.1% in volume, and primers, distemper, and others also posted healthy volume gains. This diverse performance underscores a dynamic market.

Gross margins remained stable at 46.8%, supported by favorable raw material prices and a better product mix. Operating profit margins saw a significant rise of 236 basis points to 19%, largely due to a reduction in advertising and publicity (A&P) expenses. A&P spends were 260 basis points lower year-on-year, standing at 5.6% of revenues.

Looking ahead, the company anticipates revenue and profit after tax (PAT) to grow at a compound annual growth rate (CAGR) of 9% and 11%, respectively, from FY25 to FY28E. This projection is based on expectations of a gradual recovery in the paints industry, market expansion, and planned capacity additions. The stock is currently trading at attractive multiples for the upcoming fiscal years.