Indigo Paints Reports Strong Q3 FY26 Performance with 16.4% Profit Growth
Indigo Paints Limited reported strong Q3 FY26 results with consolidated revenue growing 4.7% to Rs 358.8 crores and net profit increasing 16.4% to Rs 41.7 crores (excluding exceptional items). The company maintained industry-leading gross margins at 47.1% while expanding EBITDA margin from 17.5% to 19.4%. For nine months, consolidated revenue reached Rs 979.9 crores with net profit of Rs 93.0 crores, up 9.8% year-on-year. The subsidiary Apple Chemie recorded strong 31.5% growth, contributing to overall performance. Results included exceptional items of Rs 613.31 lakhs related to new labour code implementation.
*this image is generated using AI for illustrative purposes only.
Indigo Paints Limited has delivered a strong financial performance for the quarter and nine months ended December 31, 2025, showcasing robust growth across revenue and profitability metrics. The paint manufacturer's consolidated results reflect sustained business momentum despite seasonal challenges, with the company maintaining its industry-leading margins while expanding market presence.
Quarterly Financial Performance
The company's Q3 FY26 consolidated performance demonstrated strong growth across key parameters. Revenue from operations increased to Rs 358.8 crores compared to Rs 342.6 crores in the corresponding quarter of the previous year, representing a growth of 4.7%. The consolidated net profit reached Rs 41.7 crores (excluding exceptional items) against Rs 35.8 crores in Q3 FY25, marking a significant increase of 16.4%.
| Metric | Q3 FY26 | Q3 FY25 | Growth (%) |
|---|---|---|---|
| Consolidated Revenue | Rs 358.8 crores | Rs 342.6 crores | +4.7% |
| Consolidated Net Profit* | Rs 41.7 crores | Rs 35.8 crores | +16.4% |
| Standalone Revenue | Rs 338.9 crores | Rs 327.5 crores | +3.5% |
| Standalone Net Profit* | Rs 40.5 crores | Rs 36.5 crores | +11.2% |
*Excluding exceptional items
On a standalone basis, the company recorded revenue from operations of Rs 338.9 crores in Q3 FY26, up from Rs 327.5 crores in the corresponding quarter last year, representing growth of 3.5%. The standalone net profit (excluding exceptional items) stood at Rs 40.5 crores compared to Rs 36.5 crores in Q3 FY25.
Margin Expansion and Profitability
The company demonstrated strong operational efficiency with significant margin expansion during the quarter. EBITDA (excluding other income) on a consolidated basis increased to Rs 68.3 crores from Rs 57.2 crores in the corresponding quarter, representing growth of 19.5%. On a standalone basis, EBITDA grew to Rs 65.6 crores from Rs 57.3 crores, marking an increase of 14.5%.
| Performance Metric | Q3 FY26 | Q3 FY25 | Improvement |
|---|---|---|---|
| Standalone Gross Margin | 47.1% | - | Industry leading |
| Standalone EBITDA Margin | 19.4% | 17.5% | +190 bps |
| Standalone PAT Margin | 11.8% | - | Strong profitability |
The company maintained its industry-leading gross margin at 47.1% on a standalone basis, while EBITDA margin expanded sharply from 17.5% in Q3 FY25 to 19.4% in Q3 FY26. The PAT margin for the quarter stood at 11.8%, reflecting strong operational performance.
Nine-Month Performance Overview
For the nine months ended December 31, 2025, the consolidated revenue from operations reached Rs 979.9 crores compared to Rs 953.1 crores in the corresponding period last year, representing growth of 2.8%. The consolidated net profit for the nine-month period stood at Rs 93.0 crores (excluding exceptional items) against Rs 84.8 crores in the previous year, marking an increase of 9.8%.
| Nine-Month Metrics | FY26 (9M) | FY25 (9M) | Growth (%) |
|---|---|---|---|
| Consolidated Revenue | Rs 979.9 crores | Rs 953.1 crores | +2.8% |
| Consolidated EBITDA | Rs 159.2 crores | Rs 146.1 crores | +9.0% |
| Consolidated Net Profit* | Rs 93.0 crores | Rs 84.8 crores | +9.8% |
| Standalone Revenue | Rs 932.2 crores | Rs 910.0 crores | +2.4% |
| Standalone EBITDA | Rs 155.0 crores | Rs 145.7 crores | +6.4% |
| Standalone Net Profit* | Rs 92.4 crores | Rs 87.0 crores | +6.2% |
*Excluding exceptional items
Subsidiary Performance and Market Dynamics
The company's subsidiary, Apple Chemie India Private Limited, contributed significantly to the consolidated performance with strong growth of 31.5% along with good profitability metrics. This subsidiary performance helped bolster the overall consolidated results, demonstrating the group's diversified business approach.
The management noted that sales in October 2025 were affected due to early Diwali and delayed withdrawal of monsoon. However, post-festive period demand was robust, indicating strong underlying market fundamentals and consumer preference for the company's products.
Exceptional Items Impact
The financial results included exceptional items of Rs 613.31 lakhs on a consolidated basis and Rs 585.33 lakhs on a standalone basis. These exceptional items relate to the implementation of new labour codes effective November 21, 2025, which consolidated multiple existing labour legislations into a unified framework. The impact primarily arose from changes in the definition of wages and recognition of past service costs under the new regulatory framework.
Given the regulatory-driven and non-recurring nature of this impact, the company presented these costs as exceptional items. The management continues to monitor the finalization of central and state rules and further government clarifications, with any additional accounting impact to be recorded as required.
Financial Position and Outlook
The company's balance sheet remains strong with paid-up equity share capital of Rs 4,767.57 lakhs and other equity of Rs 98,294.47 lakhs on a consolidated basis. The earnings per share (EPS) for Q3 FY26 stood at Rs 7.63 (basic) and Rs 7.60 (diluted) on a consolidated basis, compared to Rs 7.56 (basic) and Rs 7.54 (diluted) in the corresponding quarter last year.
The company operates in the manufacturing and selling of paints and allied products segment, with business performance reviewed as a single reportable operating segment due to the interlinked nature of products and observed synergies. The results demonstrate the company's ability to maintain growth momentum while expanding profitability margins in a competitive market environment.
