Indigo Paints Q2FY26 Concall Decoded: When the Skies Clear, So Does the Mood


1. Opening Hook

Extended monsoons, sluggish August, and a short Diwali—basically the holy trinity of bad luck for paint companies. Yet Indigo Paints somehow managed to brush up a smile on its numbers. The management sounded like they just survived a weather apocalypse with a roller and a prayer. Still, CMD Hemant Jalan believes the worst is over, and the industry’s long dry spell (ironically caused by too much rain) might be ending. Grab your color charts, folks — things are about to get interesting.


2. At a Glance

  • Revenue up 4.2% (₹312.1 Cr) – Rain couldn’t wash away their sales streak.
  • EBITDA up 12.1% (₹46.5 Cr) – Margins painted themselves a little brighter.
  • PAT up 13.5% (₹25.2 Cr) – The bottom line finally picked a bold color.
  • Gross margin 45.1% – Creamier than last year’s 44.1%, courtesy of premium shades.
  • Apple Chemie revenue up 22.6% – Waterproofing profits? Yes, please.
  • Dealer count 18,900+; tinting machines 11,650+ – The retail army expands quietly.

3. Management’s Key Commentary

“We are pleased to see growth picking up again despite extended monsoons.”
(Translation: The rain gods were unkind, but we still found a dry patch to sell paint.) 😏

“Gross margins expanded to 45.1% from 44.1% last year.”
(Translation: Premium paints and fewer discounts — finally, some math that adds up!)

“EBITDA margin improved to 15.3%.”
(Translation: Operational efficiency met a fresh coat of discipline.)

“Apple Chemie grew 22.6% with better product mix.”
(Translation: Our side hustle in chemicals is now the teacher’s pet.)

“Demand

is showing clear signs of recovery.”
(Translation: Consumers finally remembered walls need love too.)

“New competitors’ discounts didn’t impact us.”
(Translation: Others fought a price war; we just waited for them to get tired.)

“Diwali was short, but dealers paid up fast.”
(Translation: Money flowed, stocks moved, and prayers were answered.) 🎨


4. Numbers Decoded

MetricQ2FY26YoY GrowthComment
Revenue (Consol)₹312.1 Cr+4.2%Modest but resilient growth amid weather woes
EBITDA₹46.5 Cr+12.1%Higher margins despite muted volumes
PAT₹25.2 Cr+13.5%Profit palette looking brighter
Gross Margin45.1%+100 bpsPremium paints save the day
Dealers18,900++10%Expanding canvas
Tinting Machines11,650++8%More colors, more reach
Apple Chemie Revenue₹13.6 Cr+22.6%Waterproofing gold mine

Comment: When margins climb while the rain pours, you know someone’s mixing the right shades of strategy.


5. Analyst Questions

Q: Why not double-digit growth yet?
A: Blame the longest monsoon in living memory. But double digits will return soon — Q4 is our Q4tune.

Q: What’s the deal with competition and heavy discounts?
A: “Let them play with extra litres; we’ll play with logic.”

Q: Bihar’s election freebies boosting sales?

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