Indigo Paints reported YoY revenue growth of 4.2%, outperforming Kansai (0.1%), Berger (1.9%), and Akzo (-15%). It also achieved Ebitda margin expansion of +106bps, while Berger and Akzo saw margin contractions.
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ICICI Securities Report
Indigo Paints Ltd.’s Q2 FY26 delivered on both key parameters of market share gains as well as margin expansion. It reported revenue growth of +4.2% YoY vs Kansai Nerolac (+0.1%), Berger Paints (+1.9%) and Akzo Nobel (-15%).
Indigo Paints was also able to report Ebitda margin expansion (+106bps) higher than its key peers – Kansai (+15bps), Berger (-319bps) and Akzo (-166bps).
We consider this as commendable performance considering there was incessant rainfall and limited sales related to pre-Diwali.
We believe there are multiple tailwinds for H2 FY26 and FY27 such as -
capacity expansion of putty, water-based plant and solvent-based plant in H2 FY26,
revival in demand (green shoots visible),
additional efforts on distribution of Apple Chemie in South and East India coupled with brand relaunch,
softening of competitive pressures and
correction in commodity prices. Indigo has continued its investments in distribution expansion and added 358 active dealers and 355 tinting machines in Q2 FY26.
Maintain Add.
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