Indigo Paints drops as Q2 net profit declines 47% YoY
Revenue from operations increased 14.96% year on year to Rs 358.75 crore from Rs 312.06 crore. However, revenue declined 2.95% quarter on quarter from Rs 369.67 crore in Q1 FY27.
EBITDA declined 33.5% year on year to Rs 31 crore from Rs 46.5 crore. EBITDA margin contracted to 8.6% from 14.9% in Q2 FY26.
Profit before tax stood at Rs 16.65 crore in Q2 FY27, down 70.28% vs previous quarter and 50.68% vs year-ago quarter.
Total expenditure increased 22.43% year on year to Rs 343.52 crore from Rs 280.58 crore. Raw material consumption rose 35.42% to Rs 214.86 crore from Rs 158.66 crore. Employee expenses increased 18.32% to Rs 36.81 crore, while interest costs rose 5.63% to Rs 0.75 crore. Depreciation and amortisation increased 4.45% to Rs 15.73 crore.
Consolidated net cash generated from operating activities stood at Rs 53.13 crore in H1 FY27, compared with Rs 81.89 crore in the corresponding period last year.
Indigo Paints expects growth momentum to sustain in the second half of FY27, supported by a revival in its dealer network and an improved product mix. The company said the impact of high-cost raw material inventory has been absorbed, leaving it with a cleaner cost base for the coming quarters. It expects gross margins to improve by Q3 FY27 and EBITDA margins to normalise in Q3 and Q4 as inventory levels are calibrated to market conditions.
The company will continue its brand-building initiatives, with disciplined annual advertising and promotion spending. It also plans to expand its presence into new territories.
Indigo Paints manufactures and sells decorative paints and allied products in India. Its portfolio includes interior and exterior emulsions, enamels, wood coatings, primers, putties, distempers, waterproofing solutions and construction chemicals.
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