Indigo Paints Q1 FY27 Results (NSE: INDIGOPNTS)
Signal: Margin expansion
The read
Q1FY27 marks a sharp operating inflection: consolidated revenue accelerated to +19.7% YoY from +9.5% in Q4FY26, EBITDA growth of +43.7% outpaced revenue by 24.0 percentage points and margin expanded 330bps to 19.5%; however, PAT growth of +60.9% also benefited from ₹1,019.13 lakh of other income and management cited rising raw-material costs and inventory buildup as continuing risks.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹369.67 Cr | 19.7% | -13.1% |
| EBIT | ₹56.61 Cr | 59.7% | |
| Net profit | ₹41.7 Cr | 60.9% | |
| EPS | ₹8.76 | 61.0% | |
| EBIT margin | 19.5% |
P&L walk
Consolidated revenue grew 19.7% YoY to ₹36,967.08 lakh, EBITDA grew 43.7% to ₹7,221 lakh and EBITDA margin expanded to 19.5%, while PAT increased 60.9% to ₹4,170.32 lakh; management attributed the margin headwind to rising raw-material costs and inventory buildup.
Segments
The group reports one operating segment, while the subsidiary Apple Chemie India grew 40.1% but recorded a ₹9.47 lakh net loss, so subsidiary growth expanded consolidated revenue without yet contributing profit.
Key positives
- Consolidated revenue rose 19.7% YoY to ₹36,967.08 lakh, accelerating from 9.5% YoY growth in Q4FY26.
- Standalone value and volume both grew in double digits, with revenue up 18.7% YoY to ₹35,004.54 lakh.
- Consolidated EBITDA grew 43.7% YoY versus revenue growth of 19.7%, a 24.0 percentage-point growth gap, while EBITDA margin expanded 330bps to 19.5%.
- Standalone EBITDA margin expanded 570bps YoY to 20.5%, with employee costs up 17.5% YoY versus revenue growth of 18.7%.
- Basic EPS grew 61.0% YoY to ₹8.76, tracking PAT growth of 60.9% and passing the PAT-to-EPS dilution check.
Key concerns
- Management cited rising raw-material costs and inventory buildup as margin headwinds despite consolidated EBITDA margin expansion to 19.5%.
- Other income rose 71.1% YoY to ₹1,019.13 lakh and included mark-to-market treasury gains, contributing to PAT growth of 60.9% versus EBITDA growth of 43.7%.
- The subsidiary grew 40.1% but reported a ₹9.47 lakh net loss, so its faster revenue growth has not yet translated into group profit contribution.
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