Earnings Call Transcript

November 06, 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 and half-year ended September 30, 2026 held on November 02, 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 November 02, 2026 at 11:00 Hrs (IST) to discuss the unaudited standalone and consolidated Financial Results of the Company for the quarter and half-year ended September 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/wp- content/uploads/2026/11/Audio-Transcript-02.11.2026.pdf 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 Q2 FY27 Earnings Conference Call” November 02, 2026 MANAGEMENT: MR. HEMANT JALAN – CHAIRMAN & MANAGING DIRECTOR MR. T.S. SURESH BABU – CHIEF OPERATING OFFICER MR. CHETAN HUMANE – CHIEF FINANCIAL OFFICER MR. AISHWARYA PRATAP SINGH – CHIEF BUSINESS OFFICER MR. SRIHARI SANTHAKUMAR – GENERAL MANAGER FINANCE AND HEAD, INVESTOR RELATIONS MODERATOR: MR. ANIRUDDHA JOSHI – ICICI SECURITIES LIMITED Moderator: Ladies and gentlemen, good day, and welcome to the Indigo Paints Q2 FY27 Earnings Conference Call hosted by ICICI Securities Limited. As a reminder, all participants line will be Page 1 of 16 Indigo Paints Limited November 02, 2026 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 conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aniruddha Joshi from ICICI Securities Limited. Thank you, and over to you, sir. Aniruddha Joshi: Yes. Thanks, Iqra. On behalf of ICICI Securities, we welcome you all to Q2 FY27 Results Conference Call of Indigo Paints Limited. We have with us senior management today. Now 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: Thanks, Aniruddha. Good morning, everyone. Once again, thanks for joining the earnings call today. We have uploaded the results for the quarter and half yearly ending September 30th on the portals of the stock exchanges, kindly go through them along with the disclaimer. To discuss the highlights of the performance, We have with us Mr. Hemant Jalan, Chairman and Managing Director of the company; Mr. T. S. Suresh Babu, Chief Operating Officer; Mr. Aishwarya Pratap Singh, Chief Business Officer; Mr. Chetan Humane, Chief Financial Officer; and myself in the call today. Over to you, sir, for the opening remarks. Hemant Jalan: Thanks. Good morning, everyone, and thank you for joining us today to discuss Indigo Paints performance for Q2 and the first half of FY27. As mentioned, we have uploaded the investor presentation on the stock exchange portals, and trust you've had the opportunity to review our results. Now let me start with an honest summary. Our top line continued to grow well through the quarter, but profitability was materially affected. Stand-alone revenues grew 14.1% on a Y-on-Y basis. At the same time, our EBITDA margins fell from 15.3% a year ago to 8.9% this quarter. Almost all of this decline is accounted for by a decline in gross margins, which was affected by an unfavorable product mix and mainly by high- cost raw material inventory carried over from the previous quarter. Now we are not satisfied with this margin outcome, and let me take you through what drove it and what we are doing about it and what we expect in the quarters ahead. Now the raw material shock that began in March 2026, typically, I would say, from mid-March onwards, continued to weigh on our cost base right through Q2 of FY27. During March and April, prices of many key raw materials almost doubled and I'm not exaggerating, due to the start of the Iran war. And consequent to that, the industry implemented price increases of approximately 10% to 12% as a response. Thereafter, raw material prices started falling sharply during May and June. And for a while, it appeared that the price increases that the industry had implemented were now more or less adequate with the modified raw material pricing. However, raw material prices again started climbing up in July and August, and the industry has already announced two sets Page 2 of 16 Indigo Paints Limited November 02, 2026 of price hikes in Q3, one of which has already been implemented in the last few days and another one due to come in the third week of this month. Now when input prices go through such an unprecedented roller coaster ride, sometimes sharply up, sometimes dramatically down and then up again, the cost of goods sold that passes through the P&L becomes a little unpredictable. For example, during Q1, when our top line grew by 19%, our EBITDA grew by 42% and PAT grew by 61% on a Y-on-Y basis. Figures almost too good to be true. Obviously, what had happened is that the low-cost raw material inventory that we were carrying purchased prior to March got expensed out of the P&L in Q1, leading to unbelievably good increases in EBITDA and PAT. This quarter in Q2, the reverse has happened. High-cost raw materials purchased in March and April have got expensed out in the P&L, leading to a drastic drop in both EBITDA and PAT. The picture becomes a little better and clearer when you see the profitability movement over the entire 6 months of H1. And during H1, our top line has increased by 16.4%, and the EBITDA margin has dropped slightly from 15.1% last year to 13.4% this year. Not a great set of numbers, but not as bad as what Q2 looks in isolation. If I can just spell out the stand-alone results in Q2, our stand-alone revenue from operations in Q2 was INR340.5 crores, up 14.1% Y-o-Y. At the gross level, our revenue growth in Q2 was actually 18.8%. However, an unfavorable product mix resulted in higher discounts compared to discounts last year, leading to a lower net revenue growth of 14.1%, which is what is reported. The top line growth may appear to be in line with industry performance and not an industry beating performance as we were hoping for. The reason is that we have embarked on many initiatives on an aggressive basis to enhance our top line growth, many of which will take a little time to show results, and we are confident that results will emerge in the quarters ahead. Our gross margin for the quarter was 38.5% against 45.1% in Q2 of last year, a decline of 660 basis points. Now this is the largest single driver of this quarter's profitability performance. Part of this drop reflects the shift in product mix, but the major part reflects the higher cost of raw material inventory purchased in the previous quarter, which got expensed out in Q2. The saving grace is that the pass-through of this higher-priced raw material inventory was la [Showing first 8,000 characters — download PDF for full document]