Indigo Paints Limited Earnings Summary — Q1 FY2027
Indigo Paints Delivers 60% Profit Growth and Strong Margin Expansion in Q1 FY27
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 12.0% sequentially in Q1 FY2027.
- Revenue of ₹350 Cr is 18.7% higher year-on-year.
- Revenue has compounded at -2.0% annualised over the last 10 quarters.
- Net profit of ₹42 Cr is 60.7% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -9.9% annualised across the period.
- Operating margin stands at 17.7% in Q1 FY2027.
- Operating margin expanded by 291 bps year-on-year.
- Over the last two years operating margin has expanded by 212 bps.
- PBT margin is 16.3%.
- Expense growth of 14.7% remained below revenue growth of 18.7%.
- Operating profit of ₹62 Cr is 42.1% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 63/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 350 | 398 | 339 | 299 | 295 | 367 | 327 | 289 | 294 | 366 |
| Expenses | Stable | 288 | 306 | 273 | 253 | 251 | 281 | 270 | 246 | 248 | 284 |
| Operating Profit | Accelerating | 62 | 92 | 66 | 46 | 44 | 86 | 57 | 43 | 46 | 82 |
| Operating Margin | Stable | 17.7% | 23.0% | 19.4% | 15.3% | 14.8% | 23.4% | 17.5% | 14.8% | 15.6% | 22.5% |
| Other Income | Volatile | 10 | 0 | -2 | 3 | 6 | 6 | 3 | 5 | 4 | 4 |
| Interest | Volatile | 1 | 1 | 0 | 1 | 1 | 1 | 0 | 1 | 1 | 0 |
| Depreciation | Stable | 14 | 14 | 14 | 14 | 14 | 12 | 14 | 14 | 14 | 14 |
| Profit Before Tax | Accelerating | 57 | 77 | 49 | 34 | 35 | 78 | 46 | 33 | 35 | 72 |
| Tax | Volatile | 15 | 20 | 13 | 9 | 9 | 21 | 9 | 9 | 9 | 18 |
| Net Profit | Accelerating | 42 | 57 | 36 | 26 | 26 | 57 | 36 | 24 | 26 | 54 |
| Net Margin | Accelerating | 12.1% | 14.4% | 10.7% | 8.6% | 8.9% | 15.5% | 11.1% | 8.4% | 9.0% | 14.6% |
Key Takeaways
- Consolidated Revenue grew 19.7% YoY to ₹369.7 crores, driven by double-digit volume and value growth.
- Net Profit surged 60.0% YoY to ₹41.7 crores, aided by treasury income (other income) mark-to-market gains.
- Standalone EBITDA margin expanded to 17.7% from 14.8% YoY, though RM cost headwinds and inventory buildup slightly offset consolidated gains.
- The subsidiary Apple Chemie continued strong momentum with 40.1% revenue growth during the quarter.
- Gross margins remained healthy at 45.3% despite global supply chain disruptions caused by Middle East conflicts.
- The new water-based plant at Jodhpur is in final commissioning stages, with trial production expected to enhance supply in North/East India.
- Management shifted strategy towards aggressive top-line growth, signaling a willingness to trade off 200-250 bps of gross margin for market share.
Management Guidance
Management is targeting industry-leading top-line growth for FY27, specifically aiming for 30%+ growth in the Apple Chemie subsidiary. They anticipate stronger free cash flow generation from FY27 through FY29 as the heavy capex cycle concludes.
Sentiment Shift
Improving
The company has transitioned from a period of muted industry demand to aggressive volume-led growth, backed by new capacity and a shift in capital allocation towards higher shareholder returns.
Outlook
The company enters a high-growth phase with significant incremental capacity from the Jodhpur plant. Indigo expects to grow faster than the market by deepening penetration in Tier 1/2 cities while maintaining its stronghold in Tier 3/4 markets.
From the Annual Report (Key Quotes)
“We are in a phase where growing and gaining market share is the top priority. To pursue this with the urgency it warrants, we are prepared to accept some moderation in our gross margins.”
“The heavy investment cycle is largely complete... Indigo enters a phase of meaningfully stronger free cash flow generation.”
“Overall, as the revenue grew by 18.7%, the EBITDA increased by a healthy 42% and PAT increased by 60.7% on a standalone basis.”
Official Quarterly Documents
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This summary is AI-generated from Indigo Paints Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.