Indigo Paints Ltd. share price target

Indigo Paints (INDIGOPN) reported standalone sales growth of 3% YoY in 3QFY26 on a soft base (-4%). The sluggish revenue growth was attributed to muted demand in Oct’25, the impact of early Diwali, and the delayed monsoon.

Indigo saw revenues growing 4.7% YoY on the back of Apple Chemie’s revenue expanding a strong 31.6% (construction chemicals and waterproofing).

Indigo Paints (INDIGOPN) reported standalone sales growth of 3% YoY in 2QFY26 as demand was impacted by extended monsoon.

Indigo Paints’ (INDIGOPN) standalone sales were flat YoY in 1QFY26 due to consistent demand headwinds and the early onset of monsoon. Apple Chemie’s (subsidiary) sales declined 18% YoY.

IPL’s Q4FY25 numbers were muted as sluggishness in the paints industry continued to impact performance. Consolidated revenues grew 0.7% y-o-y to Rs. 388 crore (versus our expectation of Rs. 389 crore).

Quarterly Update Q4FY25

Indigo Paints (INDIGOPN)’s standalone sales were flat YoY in 4QFY25 due to consistent demand headwinds. The paint industry saw a 1% YoY decline in 4Q. Apple Chemie (subsidiary) sales grew 8% YoY. Consolidated sales inched up 1% YoY to INR3.9b (in line).

Quarterly Update Q3FY25

Indigo Paints (INDIGOPN)’s standalone sales declined 4% YoY in 3QFY25 due to consistent pressure on demand. The paint industry dipped 4% YoY in 3Q. Apple Chemie (subsidiary) clocked a robust sales growth of 21% YoY.

Indigo Paints reported revenue of Rs 2,995 mn in the quarter, a growth of 7.4% YoY, but a
decline of 3.7% QoQ.

Quarterly Update Q2FY25

Indigo Paints’ (INDIGOPN) standalone sales growth stood at 7% YoY in 2QFY25 (6% in 1QFY25, 18% in FY24) due to subdued industry demand (1% down in 1HFY25).

Quarterly Update Q1FY25

Indigo Paints Limited’s (IPL’s) Q1FY2025 numbers were weak as margins lagged expectations. OPM fell by ~180 bps y-o-y to 15.2%, while PAT declined by 15% y-o-y. Consolidated revenue grew by 7.8%.

INDIGOPN’s standalone sales growth decelerated to 6% YoY (from 12% in 4QFY24 and 18% in FY24) due to subdued industry sales (down 2% YoY) and demand weakness in Kerala.

Initiating Coverage Report

Indigo Paints (INDIGOPN) delivered consolidated sales growth of 18% YoY
to INR3.8b (est. INR3.9b). Standalone sales growth decelerated to 12.5%
YoY in 4QFY24 vs. 19% in 9MFY24. Apple Chemie clocked 24% YoY growth
in FY24 to INR517mn (since acquisition in 1QFY24) and supported
consolidated growth

Indigo’s strategy 2.0 has continued to yield strong results with market share gains for straight fourth quarter.

Indigo’s strategy 2.0 is resulting in industry-leading revenue growth and market share gains. While we are enthused by Indigo’s strong volume-led revenue growth across segments, we believe steep increase in tinting machines (18.1%YoY) is also one of the chief reasons for growth.