Q1 2027 Indigo Paints Ltd Earnings Call Transcript
Key Points
- Revenue grew 18.7% year-over-year to INR350 crores, with double-digit growth in both volume and value across all product categories.
- EBITDA margin expanded to 17.7%, the highest Q1 margin in four years, driven by operational leverage and cost control.
- PAT surged 60.7% to INR42.4 crores, with PAT margin improving to 11.8%.
- Distribution network strengthened, with active dealers up by 800 and tinting machines up by 1,100 year-over-year.
- New water-based plant at Jodhpur is set to commence trial production in August, ahead of the festive season, enhancing capacity and freight economics.
- Raw material prices remain elevated and volatile, posing ongoing margin pressure.
- Gross margin slightly declined to 45.3% from the prior year's level.
- Apple Chemie's profitability was compressed due to high-cost inventory and limited ability to pass on price increases.
- Advertising and promotion expenditure was reduced to 4.3% of revenue, reflecting a strategic timeout from IPL advertising.
- Management acknowledged that top-line growth was not aggressive enough, indicating a need for more spending to widen the gap with the industry.
Ladies and gentlemen, good day, and welcome to Indigo Paints Q1 FY '27 earnings call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Anirudh Joshi. Thank you, and over to you, sir.
Yeah, thanks, Atharva. On behalf of ICICI Securities, we welcome you all to Q1 FY '27 Results conference call of Indigo Paints Limited.
I hand over the call to Mr. Srihari Santhakumar, General Manager, Finance and Investor Relations, to introduce the management and take the call forward. Thanks, and over to you, Sir.
Yeah, Thanks, Anirudh. Good morning, everyone. Thanks once again for joining the earnings conference call today. To discuss the performance of the company for the quarter, from the management side, we have with us Mr.
Hemant Jalan, Managing Director; Mr. Suresh Babu, Chief Operating Officer; Mr. Aishwarya Pratap Singh,
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