Indigo Paints , a key player in the Indian paint industry, is showing signs of resilience and growth amid challenging market conditions. The company's Q2 FY26 performance and recent market indicators suggest a positive outlook for the coming quarters.

Q2 FY26 Performance Highlights

Indigo Paints reported a steady performance in Q2 FY26:

The company maintained its leadership in gross margins, which expanded to 45.10% from 44.10% in the same quarter last year.

Market Recovery Signals

Hemant Jalan, Chairman and Managing Director of Indigo Paints, expressed optimism about the market's recovery:

• Unprecedented levels of token scanning by painters and contractors, indicating strong secondary sales.
• Excellent fund inflow from dealers, suggesting successful inventory liquidation.
• Improved consumer sentiment driven by factors such as good monsoon, income tax reductions, and lower GST rates.

Product Performance

• Emulsions and enamels categories showed healthy growth in both volume and value terms.
• Premium products outperformed, contributing to higher value growth compared to volume growth.
• Waterproofing and construction chemical products continued to show phenomenal growth.

Strategic Initiatives

1. Dealer Network Expansion: The company has over 18,900 active dealers and more than 11,650 tinting machines as of September 30, 2025.
2. Capacity Expansion: New solvent-based and water-based plants in Jodhpur are nearing completion, set to enhance production capabilities.
3. Apple Chemie Subsidiary: The construction chemicals subsidiary is expanding its presence beyond Maharashtra, entering new markets like Madhya Pradesh, Tamil Nadu, Assam, and Bihar.

Outlook

Indigo Paints anticipates a strong recovery in the coming quarters, with expectations of double-digit growth by Q4 FY26. The company remains focused on executing better strategies, tailoring offerings to dealer and influencer needs, and maintaining financial discipline.

Mr. Jalan stated, "We are very hopeful that we'll come back to you at the end of the present quarter with significantly better numbers. And hopefully, the industry as a whole will also be back on track with good growth numbers in the days to come."

As the paint industry shows signs of revival, Indigo Paints appears well-positioned to capitalize on the improving market conditions and continue its growth trajectory.

Indigo Paints Limited , a prominent player in the Indian paint industry, has reported a 3.5% year-on-year growth in standalone revenue for Q2, reaching INR 298.50 crores. The company's performance, while modest, comes against the backdrop of extended monsoon conditions that affected the entire paint industry.

Financial Highlights

Despite the challenging environment, Indigo Paints managed to improve its profitability metrics. The company's gross margins expanded by 100 basis points to 45.1%, while EBITDA margin improved to 15.3% from 14.8% in the same quarter last year. Profit after tax stood at INR 25.50 crores, representing a PAT margin of 8.5%, up from 8.2% in the previous year's quarter.

Operational Performance

The company reported a mixed performance across its product categories:

• Emulsions: Achieved 7% value growth and 3.9% volume growth
• Enamels: Showed strong performance in the premium segment
• Putty and cement paints: Experienced a decline in both volume and value

Hemant Jalan, Chairman and Managing Director of Indigo Paints, commented on the putty segment, stating, "We moderate sales of putty depending upon pricing. If you find that there is too much of competitive intensity and the prices are dropping to unreasonable levels, we pull it back consciously because it doesn't make sense to sell products at a loss."

Market Expansion and Distribution

Indigo Paints continues to focus on expanding its market presence:

• Added 8 more Indigo Color Canvas experiential retail stores during the quarter
• Expanded dealer network to over 18,900 active dealers
• Increased tinting machines to more than 11,650

Subsidiary Performance

Apple Chemie, the company's subsidiary specializing in construction chemicals, delivered strong performance with 22.6% revenue growth to INR 13.60 crores. The subsidiary has expanded its presence beyond Maharashtra into states like Madhya Pradesh, Tamil Nadu, Assam, and Bihar.

Future Outlook

Management expressed optimism about demand recovery, citing several favorable factors:

• Good monsoon leading to bumper harvest
• RBI rate cuts totaling 100 basis points
• Government income tax reductions
• Lower GST rates on household items

Jalan noted, "We are very hopeful that we'll come back to you at the end of the present quarter with significantly better numbers. And hopefully, the industry as a whole will also be back on track with good growth numbers in the days to come."

The company reported unprecedented levels of token scanning by painters and strong dealer money inflows, indicating robust secondary sales. These factors, combined with the upcoming wedding season and favorable market conditions, are expected to provide a strong tailwind for demand revival in the paint industry.

As Indigo Paints continues to navigate the evolving market landscape, its focus on premium products, strategic expansion, and operational efficiency positions it well to capitalize on the anticipated demand recovery in the coming quarters.