Indigo Paints reported a 60% year-on-year rise in consolidated net profit to ₹41.7 crore for the June quarter, driven by a 19.7% jump in revenue. While the company achieved notable margin expansion, management flagged potential risks from rising raw material costs and current inventory levels that investors should monitor.
Indigo Paints released its financial results for the first quarter of the 2026-27 fiscal year, reporting strong growth across its key metrics. For the quarter ending June 30, 2026, the company posted a consolidated net profit of ₹41.7 crore, marking a 60% increase compared to ₹26.1 crore in the same period last year. This growth was fueled by steady demand, with the company recording double-digit increases in both the value and volume of its paint sales.
Revenue and Margin Performance
The company’s top-line growth remained robust, with revenue from operations climbing 19.7% year-on-year to reach ₹369.7 crore. A significant contributor to the improved bottom line was better operational efficiency. The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) rose by 40% to ₹62 crore. As a result, the consolidated EBITDA margin widened to 16.8%, a meaningful improvement from the 14.3% margin reported in the corresponding quarter of the previous year.
The standalone performance, which covers the core paint business, mirrored this upward trend. Standalone revenue grew 18.7% to ₹350 crore, while standalone net profit rose 60.7% to ₹42.4 crore. The standalone EBITDA margin improved to 17.7%, up from 14.8%. Additionally, the company’s subsidiary, Apple Chemie Pvt. Ltd., supported the overall performance with a 40.1% growth during the quarter.
Operational Risks and Outlook
Despite the positive quarterly performance, the company has highlighted specific challenges that could impact future operations. Management pointed to the risk of rising raw material costs, which could create pressure on profit margins in the coming quarters. Furthermore, the company noted that an existing buildup of inventory and ongoing supply-chain disruptions are areas of focus.
For investors, the key monitorable will be how the company manages these input cost pressures while maintaining its current margin levels. Future updates on raw material prices and the company’s ability to reduce its current inventory levels will be important factors in assessing whether the growth trajectory remains sustainable through the rest of the fiscal year.