Indigo Paints Limited demonstrated resilient performance in the third quarter of FY26, overcoming temporary market challenges to deliver sustained growth across key financial metrics. The company reported encouraging results despite facing headwinds in October due to delayed monsoon withdrawal and compressed festive season sales window.
Financial Performance Highlights
The company's standalone financial results for Q3 FY26 showcased strong operational efficiency and margin expansion:
| Financial Metric: |
Q3 FY26 |
Q3 FY25 |
Growth (%) |
| Revenue from Operations: |
₹338.9 crores |
₹327.4 crores |
3.5% |
| Gross Margin: |
47.1% |
47.2% |
-0.1% |
| EBITDA: |
₹65.6 crores |
₹57.3 crores |
14.5% |
| EBITDA Margin: |
19.4% |
17.5% |
+190 bps |
| PAT (excluding exceptional items): |
₹40.5 crores |
₹36.4 crores |
11.2% |
| PAT Margin: |
11.8% |
11.0% |
+80 bps |
The company maintained its industry-leading gross margin position at 47.1%, while EBITDA margin expansion of 190 basis points reflected improved operational efficiency and favorable product mix emphasizing premium offerings.
Nine-Month Performance and Consolidated Results
For the nine-month period, Indigo Paints recorded standalone revenue of ₹932.2 crores, representing 2.4% YoY growth. The company sustained healthy profitability with EBITDA margin of 16.6% and PAT margin of 9.8%. On consolidated basis, Q3 FY26 revenues reached ₹358.8 crores with 4.7% YoY growth, while EBITDA grew significantly by 19.5% to ₹68.3 crores.
| Nine-Month Metrics (Standalone): |
FY26 |
FY25 |
Growth (%) |
| Revenue: |
₹932.2 crores |
₹910.8 crores |
2.4% |
| EBITDA: |
₹155.0 crores |
₹145.7 crores |
6.4% |
| PAT: |
₹92.4 crores |
₹87.0 crores |
6.2% |
Product Category Performance
The company demonstrated strong performance across multiple product segments, with enamels and wood coatings leading growth momentum:
| Product Category: |
Value Growth (%) |
Volume Growth (%) |
| Enamels and Wood Coatings: |
18.9% |
20.2% |
| Primers, Distempers and Others: |
12.5% |
7.4% |
| Putty and Cement Paint: |
5.5% |
2.1% |
| Emulsions: |
0.2% |
-3.4% |
Waterproofing products continued exceptional growth trajectory, now accounting for approximately 7% of total revenue. The premium segment of emulsions showed resilience with value growth outpacing volume trends, contrasting with industry-wide down-trading patterns.
Management Commentary and Market Recovery
During the earnings conference call held on February 16, 2026, Chairman and Managing Director Hemant Jalan expressed optimism about sustained recovery momentum. The company reported consistent double-digit growth for three consecutive months from November 2025 through January 2026, significantly outpacing broader market trends.
Jalan highlighted that the paint industry is exhibiting unmistakable signs of measured recovery, attributing improved demand to government initiatives including income tax relief to the middle class and multiple rounds of interest rate reductions by RBI. He noted that while October faced challenges due to delayed monsoon withdrawal and early Diwali festival timing, the company successfully delivered impressive double-digit growth in both November and December.
Strategic Focus and Operational Expansion
Indigo Paints strengthened its market presence through strategic network expansion and infrastructure development. The company operated with over 19,100 active dealers and more than 11,900 tinting machines as of December 31, 2025. During the quarter, the company opened an additional depot in Prayagraj, Uttar Pradesh, bringing total depot count to 55.
Production commenced at the new solvent-based plant in Jodhpur, enhancing enamel supply capabilities for Northern and Eastern regions. The brownfield putty plant expansion at Jodhpur also began operations, while the new water-based plant with 90,000 kiloliters annual capacity is expected to start production in June 2026.
Management highlighted strategic shifts in advertising approach, with A&P spend declining to 5.9% of revenue compared to 7% in the previous year. The company is focusing more on direct influencer engagements and expanding Indigo Colour Canvas stores to showcase their full portfolio in immersive environments.
Subsidiary Performance and Future Outlook
Apple Chemie, the company's subsidiary, delivered stellar performance with Q3 revenues of ₹20 crores, marking 31.5% growth over the previous year. The subsidiary commenced production at its new sealant plant in Nagpur and is actively pursuing export opportunities across Southern and Eastern India.
The company anticipates strong performance in the seasonally favorable Q4 period, supported by improving market conditions and operational resilience. Management emphasized their confidence in leveraging industry-leading gross margins for aggressive market expansion while maintaining profitability leadership.
Source: None/Company/INE09VQ01012/003d2f95-07ec-4459-9451-66a06f7b0fcb.pdf
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