INDIGO Paints Ltd – Investor Presentation Summary

Key Operational Highlights

  • New depot opened at Bikaner (4th in Rajasthan)
  • Total depots expanded to 56 across 28 states
  • Active dealer count: 19,730
  • Tinting machines deployed: 12,718
  • 19 Colour Canvas Stores set up across India

Segment-wise Performance

Product Category Performance (Q2 FY27 vs Q2 FY26)
  • Putty + Cement Paints: Value growth 12.6%, Volume growth -0.2%
  • Emulsions: Value growth 13.3%, Volume growth 10.4%
  • Enamels and wood coatings: Value growth 17.8%, Volume growth 8.2%
  • Primers + Distempers + Others: Value growth 29.4%, Volume growth 9.4%

Financial Highlights

Q2 FY27 Standalone Performance
  • Gross Revenue Growth: 18.8% YoY
  • Net Revenue Growth: 14.1% YoY (affected by unfavorable product mix and higher discounts)
  • EBITDA Margin: 8.9% vs 15.3% in Q2 FY26
  • PAT Margin: 4.0% vs 8.5% in Q2 FY26
  • Advertising & Promotion Spend: Rs 18.3 crore vs Rs 15.7 crore in Q2 FY26
H1 FY27 Standalone Performance
  • Net Revenue Growth: 16.4% over H1 FY26
  • EBITDA Margin: 13.4% vs 15.1% in H1 FY26
  • PAT: Rs 56.2 crore vs Rs 51.9 crore in H1 FY26
  • PAT Margin: 8.0% vs 8.6% in H1 FY26

Geographical Revenue Split

  • Operational presence across 28 states in India
  • Focus on fortifying presence in Tier 3,4 cities and growing in Tier 1,2 cities
  • No specific domestic/export revenue breakdown provided

Capex & Cash Flow Health

Capacity Expansion
  • New plant at Jodhpur: Trial production at water-based plant (90,000 KLPA capacity) started in September 2026
  • Solvent-based plant & Putty Plant production commenced in FY26
  • Current installed solar capacity: 350 kW spread across Pune & Kochi
  • 1.2 GW solar power plant under commissioning in Jodhpur

Strategic & R&D Initiatives

Indigo Paints 2.0 Strategy
  • Product innovation: Develop differentiated products to grow market share and expand portfolio through inorganic growth
  • Geographic expansion: Grow in Tier I and II cities, augment engagement with painters & contractors
  • Capacity augmentation: Expand in existing strategic locations with state-of-the-art plant with automated material handling
Apple Chemie Acquisition
  • WPCC products for retail channel launched and marketed under Indigo brand (Protect Plus Series)
  • Apple Chemie targets B2B, fast-growing infrastructure segment
  • First construction chemical manufacturer to get accreditation from NABL
  • Q2 FY27 growth robust but margins constrained by elevated raw material costs

Sustainability initiatives

Community Service
  • Unique initiative involving painters in painting Government schools in Tier 2/3 towns: Over 260 schools painted
  • Education assistance & career guidance provided to about 480 girls through Payal Jalan Trust – Educare initiative
Healthcare Initiatives
  • Health benefit program extended to painter community across the country: Over 30,000 painter families covered
  • Healthcare for underprivileged through Cancure foundation near Kochi Factory
Skill Development
  • SkillUp Program for Painter Community: Trained over 2,360 painting professionals to brush up soft skills and assist in business development

Management Commentary & Growth Outlook

H2 FY27 Outlook
  • Anticipate improved growth and product mix driven by strong dealer network revival
  • Impact of high-cost raw material inventory has been absorbed, leaving clean base for quarters ahead
  • Expect to reclaim pole position on GM% front during seasonally strong Q3 & Q4
  • Commitment to brand building continues with disciplined annual A&P spend across ATL & BTL engagements
  • Q3 and Q4 should see EBITDA margins normalize with inventory calibrated to market conditions
  • Gross margin improvement expected to drive second-half recovery
Apple Chemie Outlook
  • Expect growth momentum to sustain
  • Gross margins to improve by Q3 FY27
  • Extending footprint into new territories

Key Risks

  • Unfavorable product mix affecting net realizations
  • Raw material cost headwinds from high-cost inventory
  • Higher promotional expenses impacting margins