{"id":180895,"date":"2026-02-16T01:58:10","date_gmt":"2026-02-16T06:58:10","guid":{"rendered":"https:\/\/alphastreet.com\/india\/?p=180895"},"modified":"2026-02-16T01:58:10","modified_gmt":"2026-02-16T06:58:10","slug":"indigo-paints-q3-profit-rises-11-margins-expand-on-lower-ad-spend-and-benign-raw-material-costs","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/indigo-paints-q3-profit-rises-11-margins-expand-on-lower-ad-spend-and-benign-raw-material-costs\/","title":{"rendered":"Indigo Paints Q3 Profit Rises 11%, Margins Expand on Lower Ad Spend and Benign Raw Material Costs"},"content":{"rendered":"\n<p>Indigo Paints Limited (BSE: 543258 | NSE: INDIGOPNTS), a decorative paints manufacturer, reported a 11.2% year-on-year rise in third-quarter profit, aided by improved operating margins, lower advertising spends and easing raw material prices, even as revenue growth remained moderate.<\/p>\n\n\n\n<p>The company has a pan-India presence across 28 states, supported by five manufacturing plants, and over 19,000 active dealers and 55 depots. The company focuses on differentiated products, premiumization and expansion into construction chemicals through its subsidiary Apple Chemie India Ltd.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q3 Profit Rises 11% on Margin Expansion<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Indigo Paints reported a 11.2% year-on-year rise in standalone Q3 FY26 profit to \u20b940.5 crore (excluding exceptional items), supported by improved operating efficiencies and lower advertising spends.<\/li>\n\n\n\n<li>Revenue from operations rose 3.5% to \u20b9338.9 crore.<\/li>\n\n\n\n<li>EBITDA increased 14.5% to \u20b965.6 crore, with EBITDA margin expanding to 19.4% from 17.5% a year earlier.<\/li>\n\n\n\n<li>Gross margin remained strong at 47.1%, sustaining its industry-leading position among listed peers.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Nine-Month Performance Shows Steady Gains<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>For 9M FY26, revenue rose 2.4% to \u20b9932.2 crore.<\/li>\n\n\n\n<li>PAT increased 6.2% to \u20b992.4 crore, while EBITDA grew 6.4% to \u20b9155.0 crore.<\/li>\n\n\n\n<li>EBITDA margin improved to 16.6% from 16.0% last year.<\/li>\n\n\n\n<li>The company booked a one-time gratuity provision of \u20b95.85 crore during the quarter linked to the draft Labour Code impact. Excluding this, PAT margin stood at 11.8% in Q3 versus 11.0% a year earlier.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"872\" src=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2026\/02\/Untitled-design-1024x872.png\" alt=\"\" class=\"wp-image-180898\" srcset=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2026\/02\/Untitled-design-1024x872.png 1024w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2026\/02\/Untitled-design-300x255.png 300w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2026\/02\/Untitled-design-768x654.png 768w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2026\/02\/Untitled-design.png 1171w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Cost Control and Advertising Rationalization Drive Margins<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Advertising and promotional (A&amp;P) expenses declined to 5.6% of revenue in Q3 FY26 from 8.2% last year. For 9M FY26, A&amp;P stood at 5.9% versus 7.0%.<\/li>\n\n\n\n<li>Management attributed margin gains to better cost discipline, favourable product mix and raw material prices reverting to pre-COVID levels, enabling improved discounts while sustaining gross margins.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Segment Performance: Enamels Lead Growth<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Enamels &amp; wood coatings: Value growth 18.9%, volume growth 20.2%<\/li>\n\n\n\n<li>Primers, distempers &amp; others: Value growth 12.5%<\/li>\n\n\n\n<li>Putty &amp; cement paints: Value growth 5.5%<\/li>\n\n\n\n<li>Emulsions: Marginal value growth, volume decline<\/li>\n\n\n\n<li>The company noted moderated sales in October 2025, followed by double-digit growth from November onwards.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Distribution Expansion and Pan-India Presence<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Indigo expanded its dealer network to 19,134 active dealers, supported by 55 depots and over 11,900 tinting machines. A new depot was opened in Uttar Pradesh to enhance service efficiency.<\/li>\n\n\n\n<li>The company operates across 28 states with five manufacturing plants and continues to deepen penetration in Tier 1\u20134 cities.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Adjacency Growth Through Apple Chemie India Ltd<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Apple Chemie, focused on construction chemicals and waterproofing, posted Q3 revenue of \u20b920.0 crore versus \u20b915.2 crore a year earlier.<\/li>\n\n\n\n<li>Nine-month revenue rose to \u20b947.6 crore.<\/li>\n\n\n\n<li>The subsidiary commenced production at its Nagpur sealant plant, launched retail waterproofing products under the Indigo brand and is exploring export opportunities.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Capacity Expansion and Sustainability Initiatives<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The company is in the final stages of commissioning a 90,000 KLPA water-based plant, expected by June 2026. Production has also begun at its solvent-based and brownfield putty plants.<\/li>\n\n\n\n<li>On ESG, Indigo commissioned 330 kW solar panels at its Kochi facility and expanded healthcare and skill-development programs for over 36,000 painter families.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Outlook: Margin Improvement Expected in FY26<\/strong><\/h2>\n\n\n\n<p>The company expects improved sales momentum to continue, with EBITDA margins projected to strengthen in FY26 due to better demand, improved product mix and benign raw material prices. A&amp;P spending as a percentage of revenue is expected to decline for the full fiscal year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Takeaway<\/strong><\/h2>\n\n\n\n<p>Despite modest revenue growth, Indigo Paints delivered double-digit profit expansion and meaningful margin improvement, reflecting strong cost management, premiumization strategy and growing contribution from construction chemicals.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Indigo Paints Limited (BSE: 543258 | NSE: INDIGOPNTS), a decorative paints manufacturer, reported a 11.2% year-on-year rise in third-quarter profit, aided by improved operating margins, lower advertising spends and easing raw material prices, even as revenue growth remained moderate. The company has a pan-India presence across 28 states, supported by five manufacturing plants, and over [&hellip;]<\/p>\n","protected":false},"author":2378,"featured_media":125269,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[5,1941,392,5753],"tags":[16547,10226,16548],"class_list":["post-180895","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest","category-stock-analysis","category-earnings","category-industrials","tag-indigopnts-2","tag-paints","tag-waterproofing"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":170433,"url":"https:\/\/alphastreet.com\/india\/indigo-paints-q1-fy26-earnings-results\/","url_meta":{"origin":180895,"position":0},"title":"Indigo Paints Q1 FY26 Earnings Results","author":"Divyansh_Kasana","date":"August 21, 2025","format":false,"excerpt":"Indigo Paints Ltd, incorporated in 2000, is engaged in the manufacturing and sale of decorative paints. Presenting below are its Q1 FY26 Earnings Results. Q1 FY26 Earnings Results Revenue: \u20b9309 crore, down 0.64% year-on-year (YoY) from \u20b9311 crore in Q1 FY25. Total Expenses: \u20b9281 crore, up 0.36% YoY from \u20b9280\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"INDIGOPNTS Q1 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/INDIGOO.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/INDIGOO.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/INDIGOO.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/INDIGOO.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/INDIGOO.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/INDIGOO.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":138477,"url":"https:\/\/alphastreet.com\/india\/indigo-paints-limited-q2-fy23-net-profit-surged-by-174\/","url_meta":{"origin":180895,"position":1},"title":"Indigo Paints Limited Q2 FY23; Net Profit Surged By 174%","author":"Hardik Bhandare","date":"December 14, 2022","format":false,"excerpt":"Indigo Paints Limited (NSE: INDIGOPNTS) reported Q2FY23 result with a Revenue from Operations growth of 24% up to \u20b9242.6 Crores from \u20b9196.11 Crores year on year. The Net Profit surged up to \u20b937.08 Crores from \u20b913.54 Crore, an increase of 174%. The Earnings per share is \u20b97.78 for this quarter.","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/12\/fa5ef447-3980-499b-b661-9e7db44962d3-scaled.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/12\/fa5ef447-3980-499b-b661-9e7db44962d3-scaled.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/12\/fa5ef447-3980-499b-b661-9e7db44962d3-scaled.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/12\/fa5ef447-3980-499b-b661-9e7db44962d3-scaled.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/12\/fa5ef447-3980-499b-b661-9e7db44962d3-scaled.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/12\/fa5ef447-3980-499b-b661-9e7db44962d3-scaled.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":148480,"url":"https:\/\/alphastreet.com\/india\/indigo-paints-revolutionizing-the-coating-industry-with-innovative-solutions-and-sustainable-practices\/","url_meta":{"origin":180895,"position":2},"title":"Indigo Paints: Revolutionizing the Coating Industry with Innovative Solutions and Sustainable Practices.","author":"Divyansh_Kasana","date":"June 6, 2023","format":false,"excerpt":"Stock Data: TickerNSE: INDIGOPNTSExchangeNSEIndustryPAINTS Price Performance: Last 5 Days+0.74%YTD+12.44%Last 12 Months-3.27% Company Description: Founded in 2000, Indigo Paints Ltd is a leading paint company in India. The company started its operations by manufacturing lower-end cement products and gradually expanded its product range to cover various segments of water-based paints, including\u2026","rel":"","context":"In &quot;Research Summary&quot;","block_context":{"text":"Research Summary","link":"https:\/\/alphastreet.com\/india\/category\/research-summary\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/06\/f6ceac66-f2a3-45a2-ae80-d4455cad9356.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/06\/f6ceac66-f2a3-45a2-ae80-d4455cad9356.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/06\/f6ceac66-f2a3-45a2-ae80-d4455cad9356.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/06\/f6ceac66-f2a3-45a2-ae80-d4455cad9356.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/06\/f6ceac66-f2a3-45a2-ae80-d4455cad9356.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/06\/f6ceac66-f2a3-45a2-ae80-d4455cad9356.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":142767,"url":"https:\/\/alphastreet.com\/india\/earnings-summary-of-indigo-paints-limited-for-q3-fy23\/","url_meta":{"origin":180895,"position":3},"title":"Earnings Summary Of Indigo Paints Limited For Q3 FY23","author":"Hardik Bhandare","date":"February 10, 2023","format":false,"excerpt":"Indigo Paints (NSE: INDIGOPNTS) is an Indian paint manufacturing company founded in 2000, with its headquarters located in Pune, Maharashtra. The company primarily focuses on producing decorative paints, including emulsions, enamels, wood coatings, distempers, primers, and putties, among others. Indigo Paints has a vast distribution network of 37 depots and\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-31.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-31.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-31.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-31.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-31.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-31.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":138574,"url":"https:\/\/alphastreet.com\/india\/everything-you-need-to-know-about-pindigo-paints-ltd-nse-indigopnts\/","url_meta":{"origin":180895,"position":4},"title":"Everything You Need to Know About Indigo Paints Ltd.(NSE :INDIGOPNTS)","author":"Divyansh_Kasana","date":"January 10, 2023","format":false,"excerpt":"A few more new product lines have been recently added, one being a budget range of exterior emulsion and another being a high sheen variant of an existing premium exterior emulsion. We sincerely hope that we will be able to report a much higher growth trajectory on behalf of Indigo\u2026","rel":"","context":"In &quot;Analysis&quot;","block_context":{"text":"Analysis","link":"https:\/\/alphastreet.com\/india\/category\/stock-analysis\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/08\/iStock-687982910.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/08\/iStock-687982910.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/08\/iStock-687982910.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":143419,"url":"https:\/\/alphastreet.com\/india\/indigo-paints-improvement-in-result-despite-headwinds-other-updates\/","url_meta":{"origin":180895,"position":5},"title":"Indigo Paints: Improvement In Result Despite Headwinds &#038; Other Updates","author":"Hardik Bhandare","date":"March 27, 2023","format":false,"excerpt":"\u201cFor Indigo Paints, you may have noticed that Q4 of every year is traditionally our strongest quarter in terms of sales volumes, in terms of absolute profits and also in terms of profit margins. We expect this to continue in this fiscal. The company has witnessed good sales growth in\u2026","rel":"","context":"In &quot;Analysis&quot;","block_context":{"text":"Analysis","link":"https:\/\/alphastreet.com\/india\/category\/stock-analysis\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/03\/desktop-gcd88c37a6_640-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/03\/desktop-gcd88c37a6_640-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/03\/desktop-gcd88c37a6_640-1.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/180895","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/2378"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=180895"}],"version-history":[{"count":3,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/180895\/revisions"}],"predecessor-version":[{"id":180899,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/180895\/revisions\/180899"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125269"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=180895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=180895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=180895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}