Event Type and Details:

  • This document contains the transcript of the Q2 FY27 Earnings Conference Call held on November 02, 2026, at 11:00 Hrs (IST).
  • The call was hosted by ICICI Securities Limited to discuss the unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026.

Management Participants:

  • Mr. Hemant Jalan – Chairman & Managing Director
  • Mr. T.S. Suresh Babu – Chief Operating Officer
  • Mr. Chetan Humane – Chief Financial Officer
  • Mr. Aishwarya Pratap Singh – Chief Business Officer
  • Mr. Srihari Santhakumar – General Manager Finance and Head, Investor Relations

Financial Period Discussed:

  • The call discussed Q2 FY27 (quarter ended September 30, 2026) and H1 FY27 (half-year ended September 30, 2026) results.

Key Financial Highlights (Standalone):

  • Q2 FY27 Revenue: INR 340.5 crores (up 14.1% YoY)
  • Q2 FY27 Gross Margin: 38.5% (vs 45.1% in Q2 FY26)
  • Q2 FY27 EBITDA: INR 30.3 crores (down 33.8% YoY) at margin of 8.9% (vs 15.3%)
  • Q2 FY27 PAT: INR 13.8 crores (down 46% YoY) at margin of 4.0% (vs 8.5%)
  • H1 FY27 Revenue: INR 690.5 crores (up 16.4% YoY)
  • H1 FY27 EBITDA: INR 92.3 crores at margin of 13.4%
  • H1 FY27 PAT: INR 56.2 crores at margin of 8.0%
  • Advertising & Promotion Spend: INR 18.3 crores (5.4% of revenue) in Q2; INR 33.1 crores (4.8% of revenue) in H1

Key Financial Highlights (Consolidated - including subsidiary Apple Chemie):

  • Q2 FY27 Revenue: INR 358.7 crores (up 15% YoY)
  • Q2 FY27 EBITDA: INR 31 crores at margin of 8.6%
  • Q2 FY27 PAT: INR 13.4 crores at margin of 3.7%
  • H1 FY27 Revenue: INR 728.4 crores (up 17.3% YoY)
  • H1 FY27 EBITDA: INR 93 crores (up 2.5% YoY) at margin of 12.8%
  • H1 FY27 PAT: INR 55.1 crores (up 7.4% YoY)
  • Apple Chemie Q2 Revenue: INR 18.4 crores (up 35.3% YoY)
  • Apple Chemie H1 Revenue: INR 38.1 crores (up 37.8% YoY)

Operational Highlights:

  • Raw material volatility due to Middle East geopolitical situation caused inventory cost issues
  • High-cost inventory from March-April 2026 was expensed in Q2 FY27, impacting margins
  • Management stated this high-cost inventory impact is largely over by August 2026
  • Gross margins and EBITDA margins returned to near normal from September 2026
  • Product category performance (Q2 value/volume growth):
  • Primers, distempers and others: 29.4%/9.4%
  • Enamels and wood coatings: 17.8%/8.2%
  • Emulsions: 13.3%/10.4%
  • Putty and cement paints: 12.6%/-0.2%

Network and Capacity Expansion:

  • Distribution network: 19,730 active dealers, 12,700+ tinting machines, 56 depots across 28 states
  • New depot opened at Bikaner (Rajasthan) during quarter; 2-3 more depots planned in Q3/Q4
  • 19 Indigo Color Canvas stores operational nationwide
  • New water-based plant at Jodhpur (90,000 KL annual capacity) commenced trial production in September 2026
  • Plant expected to be fully operational by end-November 2026
  • Solar capacity: 350 kW installed; additional 1,200 kW commissioning at Jodhpur expected by December 2026

Forward-looking Statements and Guidance:

  • Expect gross margins to improve substantially from Q3 FY27 onwards
  • Expect to reclaim leading gross margin position during seasonally strong Q3 and Q4
  • EBITDA margins should normalize in second half with inventory calibrated to market conditions
  • Strong revival in dealer network gives confidence for improved growth and better product mix in H2
  • Commitment to continue brand building with disciplined annual A&P spends
  • Expect subsidiary Apple Chemie to sustain momentum as it enters new territories

Compliance Statement:

  • The transcript was made available on the company website as required by Regulation 46 of SEBI Listing Regulations
  • The document represents a disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Additional Notes Section

  • The document includes the full transcript of the earnings conference call containing management commentary and Q&A session with analysts
  • The transcript provides detailed financial results discussion but does not contain new financial data beyond what was already disclosed in results filings