Earnings Call Transcript

September 03, 2026 To, To BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza, Plot No. C-1, Block G, 25th Floor, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (East) Dalal Street, Mumbai- 400001 Mumbai - 400051 Scrip Code: 543258 NSE SYMBOL: INDIGOPNTS Dear Sir/Madam, Sub: Intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for Transcript of Earnings Call for the quarter ended June 30, 2026 held on August 14, 2026. Pursuant to the Regulation 30 read with clause 15 of Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), please find enclosed the transcript of the earnings conference call held with the analyst and investors on August 14, 2026 at 11:00 hrs (IST) to discuss the unaudited standalone and consolidated Financial Results of the Company for the quarter ended June 30, 2026. Pursuant to the provisions of Regulation 46 of the Listing Regulations the above information will also be made available on the website of the company at https://indigopaints.com/investors/analystinvestors-meets/ You are requested to take note of the same. Thanking you, For Indigo Paints Limited Hemant Kamala Jalan Chairman and Managing Director DIN: 00080942 Encl.: As Above Registered Office: INDIGO Paints Limited, Indigo Tower, Street-5, Pallod Farm-2, Baner Road, Pune - 411045 T: +91 20 6681 4300, Email: info@indigopaints.com, Website: www.indigopaints.com, CIN: L24114PN2000PLC014669 “Indigo Paints Limited Q1 FY27 Earnings Conference Call” August 14, 2026 MANAGEMENT: MR. HEMANT JALAN – MANAGING DIRECTOR MR. SURESH BABU – CHIEF OPERATING OFFICER MR. AISHWARYA PRATAP SINGH – CHIEF BUSINESS OFFICER MR. CHETAN HUMANE – CHIEF FINANCIAL OFFICER MR. SRIHARI SANTHAKUMAR – GENERAL MANAGER FINANCE AND INVESTOR RELATIONS MODERATOR: MR. ANIRUDDHA JOSHI – ICICI SECURITIES LIMITED Moderator: Ladies and gentlemen, good day and welcome to Indigo Paints Q1 FY27 Earnings Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this Page 1 of 17 Indigo Paints Limited August 14, 2026 conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aniruddha Joshi. Thank you and over to you, sir. Aniruddha Joshi: Yes. Thanks, Atharva. On behalf of ICICI Securities, we welcome you all to Q1 FY27 Results Conference Call of Indigo Paints Limited. I hand over the call to Mr. Srihari Santhakumar, General Manager, Finance and Investor Relations to introduce the management and take the call forward. Thanks, and over to you, Srihari sir. Srihari Santhakumar: Yes. Thanks, Aniruddha. Good morning, everyone. Thanks once again for joining the Earnings conference call today. To discuss the performance of the company for the quarter, from the management side, we have with us Mr. Hemant Jalan, Managing Director; Mr. Suresh Babu, Chief Operating Officer; Mr. Aishwarya Pratap Singh, the Chief Business Officer; Mr. Chetan Humane, Chief Financial Officer and myself will be discussing the performance of the company today. As usual, there will be a brief note from the MD regarding the performance of the company, followed by a quick Q&A. Over to you, sir. Hemant Jalan: Good morning, everyone, and thank you for joining us today to discuss Indigo Paints performance for the first quarter of FY '27. Now we have uploaded the investor presentation on the stock exchange portals and trust that you've had the opportunity to go through them. Now the demand momentum that we described at the close of FY26 has carried through into the first quarter of FY27. Revenue has grown in double digits, the first such quarter in almost two years for us. And while the price increases that we implemented also aided in achieving this outcome, what is more encouraging is that volumes also grew in double digits and did so across the product portfolio. On the input side, raw material prices, which rose very steeply in March following the disruption to global supply chains due to the Iran war, have since retreated from their peaks. However, they remain elevated and continue to be volatile, which necessitates constant monitoring on this front. Set against this backdrop, we are satisfied with the quality of what we have discovered in Q1, a top line growth well ahead of the paint sector, meaningful margin expansion and further strengthening of our distribution network and product mix. We'll first briefly look at the performance on a stand-alone basis before going to the console financials. Our standalone revenue from operations for the quarter was INR350 crores as against INR295 crores in the corresponding period last year, reflecting a growth of 18.7%. We believe that this places us comfortably ahead of the paint sector, and we would highlight that the growth was accompanied by double-digit expansion in volumes as well as in value across all 4 of our product categories, details of which have been given in the presentation. The gross margin for the quarter stood at 45.3%. Although it is slightly lower than the level that we recorded in Q1 of last year, our margin continues to run well ahead of the average for all the listed paint companies, a lead that we have now sustained for many years. EBITDA for the Page 2 of 17 Indigo Paints Limited August 14, 2026 quarter was INR61.9 crores against INR43.6 crores a year ago, reflecting a growth of 42% lifting our EBITDA margin from 14.8% in Q1 of last year to 17.7% in Q1 this year. This is the healthiest Q1 quarter that we have recorded as far as EBITDA margins are concerned during the last 4 years. The improvement is principally due to the operational leverage that comes with a larger revenue base, together with tighter control of discretionary expenditure across the organization. The PAT was INR42.4 crores as against INR26.4 crores in the same quarter last year, reflecting a growth of 60.7% with the PAT margin moving up from 8.8% to 11.8% in Q1 of this year. Now we did have a mark-to-market gain on our treasury income, which also partially contributed to the expansion in the PAT margin. Our advertising and promotion expenditure was 4.3% of revenue in Q1 compared to 6.8% in the same quarter last year. Now although we took a strategic timeout from advertising during the IPL season, we have redirected a lot of those funds towards painter and contractor engagement, influencer partnerships and measurable digital advertising channels. Our commitment to brand investment for the year as a whole is undiminished, and we would encourage you to assess our A&P intensity on an annual basis rather than viewing it on a quarterly basis. Turning to the consolidated picture, which includes our subsidiary, Apple Chemie. Revenue for the quarter was INR369.7 crores, a Y-o-Y growth of 19.7%. EBITDA was INR62 crores at a margin of 16.8%, up 40% on an absolute amount and PAT was INR41.7 crores at a margin of 11%, up 60% on a total amount. Apple Chemie's performance was accretive to our growth this quarter, but marginally dilutive to our margin, and I'll come to those reasons in a short while. On the product mix front, I'm glad to highlight that every product category recorded growth in both volume and value terms during the quarter. The category of primers and distempers led with almost a 30% value growth and a volume growth in excess of 18%. This was followed by the putty and cement paint segment, where the value growth was upwards of 21% and the volume growth was closer to 14%. The enamel and wood coating segment, the value grew at 17.5% and the volume growth was close to 10%. And for the emulsion category, which is the largest category in paints, the value growth [Showing first 8,000 characters — download PDF for full document]