In a quarter where the paint industry hoped for a bright coat, the monsoon decided to play mural artist—smudging demand across Kerala and the Northeast. Indigo Paints managed a barely-there 0.3% standalone revenue growth and flat PAT, while still flaunting a gross margin of 46.1%—the best in class. CMD Hemant Jalan’s tone? A mix of weather report, competitive sass, and cautious optimism.
Why it matters now: Consumer sentiment is showing green shoots, FMCG peers are bouncing back, and Indigo’s July numbers hint the demand recovery could stick. But in paintland, the real art is keeping margins intact while brushing off competition—especially from big-brand entrants splashing cash.
Stick around—things get spicier two scrolls down.
AT A GLANCE• Standalone revenue ₹308.9 cr – Flat as a freshly primed wall• EBITDA ₹43.6 cr – Down 4.7% YoY; monsoon stole the gloss• PAT ₹26.1 cr – Flat YoY, but still in the black• Gross margin 46.1% – Pole position maintained• Dealer network 18,600 – Tinting machines at 11,300 and counting
MANAGEMENT’S KEY COMMENTARY
- “Demand picked up in April–May, then the monsoon hit early.”Translation: Kerala rain ≠ romantic; it’s retail kryptonite.
- “Gross margins remain industry-best at 46.1%.”Translation: Competitors can keep their discounts—we’ll keep the profits.
- “July sales were strong despite rains.”Translation: Please let this not be a false start.
- “Competition from new entrants hasn’t dented us.”Translation: Birla who?
- “Dealer count is fine; focus is now on per-dealer throughput.”Translation: Sell more paint to the
- same shop before adding new shops.
- “Apple Chemie will focus on profitable geographies and new high-margin products.”Translation: No more empire-building for bragging rights.
- “Capex delays won’t hurt—we have enough capacity.”Translation: Plants late? No panic, no paint shortage.
NUMBERS DECODED
| Revenue – The Hero | EBITDA – The Sidekick | Margins – The Drama Queen |
|---|---|---|
| ₹308.9 cr (-0.7% YoY) | ₹44.3 cr (-6.5% YoY) | Gross: 46.1%, EBITDA: 14.3%, PAT: 8.3% |
- Revenue: Monsoon wiped out Q1 growth despite early quarter momentum.
- EBITDA: Pressure from sales volume drop; costs in check.
- Margins: Still enviable; raw material softness offset higher dealer incentives.
ANALYST QUESTIONS
- Onsouthern market mix– Kerala hurts, but premium products sell better here.
- Oncompetitive pressure– New entrant’s discounts now moderating; impact minimal.
- Ondemand recovery– FMCG bounce gives hope; expect stronger H2.
- OnApple Chemie– Shrinking to grow: focusing on high-margin infra products and fewer geographies.
