Indigo Paints (INDIGOPNTS) Q2 25/26 earnings summary

Executive summary

• Revenue and profitability grew modestly year-over-year, with consolidated Q2 FY26 revenue up 4.2% and standalone up 3.5%, reflecting demand recovery after a prolonged slowdown.

• Gross and EBITDA margins improved, supported by premium product mix, operational discipline, and stable raw material prices.

• Premium segments in emulsions and enamels outperformed, with value growth outpacing volume growth and contrary to industry trends.

• Subsidiary Apple Chemie delivered strong growth, expanding into new regions and product lines, contributing 22.6% revenue growth in Q2 FY26.

• Secondary sales and dealer collections were strong, indicating robust market activity ahead of festive and wedding seasons.

Financial highlights

• Standalone Q2 FY26 revenue: ₹298.5 crore, up 3.5% YoY; gross margin: 45.1%; EBITDA margin: 15.3%; PAT: ₹25.5 crore, up 5.8% YoY.

• Consolidated Q2 FY26 revenue: ₹312.1 crore, up 4.2% YoY; EBITDA: ₹46.5 crore, up 12.1%; PAT: ₹25.2 crore, up 13.5%.

• H1 FY26 consolidated revenue: ₹620.9 crore, up 1.7% YoY; EBITDA margin: 14.6%; PAT: ₹51.3 crore, up 4.9%.

• Apple Chemie Q2 revenue: ₹13.6 crore, up 22.6% YoY; gross margin improved due to product mix optimization.

• ROCE declined to 18.2% (standalone) and 18.5% (consolidated) in H1 FY26.

Outlook and guidance

• Management expects double-digit growth to return by Q4, with continued demand recovery and strong post-Diwali sales anticipated.

• Margins projected to strengthen as raw material prices moderate and product mix improves.

• Capacity expansion completed; no significant new capex expected until FY29.

• Apple Chemie expected to deliver strong revenue and profitability growth with new product launches and regional expansion.

• Anticipates continued strong performance in premium products and waterproofing/construction chemicals.