Indigo Paints

Indigo Paints reported a strong Q4 FY26 with standalone revenue from operations at INR397.9 crores, growing 8.4% YoY, and consolidated revenue at INR425.3 crores, up 9.7% YoY. For the full year FY26, standalone revenue reached INR1,330 crores (4.1% YoY growth) and consolidated revenue was INR1,405 crores (4.8% growth). The company's gross margin improved to 48.6% in Q4 (from 47.4% last year) and 46.9% for FY26 (from 46.5% in FY25), despite significant raw material price surges in March 2026.

The month of March 2026 saw an unprecedented^🌐 spike in raw material costs, with key inputs surging 50-100% due to the Middle East conflict, leading to supply chain disruptions. Despite this, the company's gross margin remained resilient at 48.6% in Q4, an improvement over the previous year. Management noted that the growing contribution of differentiated products helped offset input cost pressures, and industry-wide price increases of approximately 12% have largely covered the cost impact for water-based paints.

The subsidiary, Apple Chemie, delivered a strong quarter with Q4 revenues of INR27.5 crores, marking a 34.7% YoY growth. For the full year FY26, Apple Chemie recorded revenues of INR75.1 crores, an 17.8% growth over the previous fiscal. Management is ambitiously targeting a 30% plus growth rate for Apple Chemie in FY27, expecting it to become a meaningful and increasingly profitable contributor to the consolidated business.

The company's new water-based plant at Jodhpur, with an annual capacity of 90,000 KL, is in the final stages of commissioning and expected to begin trial production in June 2026. The new solvent-based plant and expanded putty plant at Jodhpur have already commenced production. Management stated that the heavy investment cycle is largely complete, and they do not envisage any further major capex until FY29, positioning the company for stronger free cash flow generation from FY27 onwards. The Board proposed a dividend of INR5 per share for FY26, a 43% increase over the INR3.5 per share distributed in the last two years.

Indigo Paints is entering a phase focused on growing and gaining market share, with a deliberate decision to 'press the accelerator' and potentially accept some moderation in gross margins (2-2.5 percentage points) to achieve higher top-line growth. While EBITDA margins are expected to remain unchanged, the overall focus is on aggressive top-line expansion. The company aims for double-digit growth at the gross level, translating to significantly higher net sales growth than the high single-digits reported in Q4 FY26.

The company's distribution network expanded to over 19,350 active dealers, more than 12,200 tinting machines, and 55 depots across all 28 states as of March 31, 2026. All four product categories (primers & distemper, putty & cement paint, emulsions, enamels & wood coatings) delivered positive volume and value growth in Q4 FY26. The company continues to deepen its stronghold in Tier 3 and Tier 4 markets while growing its presence in Tier 1 and Tier 2 markets, aiming to improve network productivity.

Indigo Paints highlighted its sustainability efforts, including a fully operational 330-kilowatt solar installation at its Kochi factory. Through its Indigo Seva Utsav initiative, over 230 government schools have been repainted. The Painter Health Benefit program covers more than 36,000 painter families, and the skill-up initiative has trained over 1,100 painting contractors. The Educare program supports approximately 360 underprivileged girls through the Payal Jalan Charitable Trust.