Indigo Paints Q1 FY27: consol PAT +60% YoY to ₹41.7 Cr, margins expand despite RM pressure
PAT +60.03% YoY · revenue +19.69% · margins expanding · beat vs street
₹369.67 Cr
+19.69% YoY
₹41.7 Cr
+60.03% YoY
10.98%
+2.7pp YoY
₹8.76
Indigo Paints' consolidated PAT (primary basis) rose 60.0% YoY to ₹41.7 Cr on revenue of ₹369.7 Cr, up 19.7% YoY — standalone tracked closely at ₹42.4 Cr PAT (+60.7% YoY) on ₹350.0 Cr revenue (+18.7% YoY). Both reported figures are clean YoY comparisons since neither this quarter nor the year-ago quarter carried any exceptional item (the ₹6.13 Cr consolidated labour-code charge flagged in the notes was a FY26 full-year balancing entry only, not a quarterly one). Sequentially, revenue fell 13.1% and PAT fell 29.5% versus Q4 FY26, which is a seasonal step-down for a paints business coming off its strongest quarter, not underlying deterioration.
Q1 FY-2027 vs prior quarters
The margin story is bifurcated by basis. Standalone EBITDA margin expanded ~290bps YoY to 17.7% (from 14.8%) on a gross margin held at 45.3% despite supply-chain disruptions, per the company's press release. Consolidated EBITDA margin (excluding other income) also expanded YoY to 16.8% from 14.35%, but eased sharply from 22.47% in Q4 FY26 — management attributes this to rising raw-material costs and inventory buildup at the group level. Consolidated NPM expanded to 11.0% from 8.28% YoY, flattered by a jump in other income to ₹10.2 Cr (from ₹6.0 Cr YoY), which the company describes as mark-to-market treasury gains — a non-operating tailwind investors should separate from the operating margin story.
The stock went into the print at ₹1,121, up 3.4% over the past month of trading.
What the summary numbers don't show
Basic EPS ₹8.76 consol (₹5.44 YoY), ₹8.89 standalone (₹5.53 YoY) — sequential decline from Q4 FY26's ₹12.10/₹12.03 reflects a seasonally stronger Q4
Management has signaled a more aggressive stance on top-line growth for FY27, aiming to outpace industry growth by pursuing market share gains. This strategy may involve a deliberate trade-off in gross margins (potentially 200-250 bps reduction) to fund increased spending on trade schemes and influencer engagement. Whi
— This quarter: beat
Against our pre-result preview, the print clears the bar on every watch item: standalone revenue growth of 18.7% resolves the "can standalone paint growth reignite" question raised after a stalled Q3, printing well above the ~₹250-260 Cr expectation; Apple Chemie sustained 40.1% growth against a >30% FY27 target and the preview's expected consol revenue of ~₹360 Cr; and EBITDA margins (16.8% consol / 17.7% standalone) landed at or above the previewed 15-18% range. Against management's own May 2026 guidance — an aggressive FY27 top-line push funded by a flagged 200-250bps gross-margin trade-off, with EBITDA margins expected merely stable — the quarter beats: margins expanded rather than compressed, and growth came in strong on both bases without visible erosion in gross margin.
W1
Consol EBITDA margin fell to 16.8% from 22.47% QoQ on RM cost inflation and inventory buildup — watch if Q2 FY27 margin stabilizes as management's guided industry price hikes offset RM costs
W2
Apple Chemie grew 40.1% this quarter against a >30% FY27 target — watch whether this pace holds through the rest of FY27
W3
Standalone gross margin held at 45.3% this quarter versus management's flagged 200-250bps FY27 trade-off risk — watch if margin gives way as trade-scheme/influencer spend ramps
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