Target: ₹1,180

CMP: ₹1,062.60

In Q4 FY25, Indigo Paints Ltd (IPL) reported flat revenue growth of about 0.7 per cent on a y-o-y basis, reflecting continued weak demand sentiment and challenging market conditions, which also led to an industry-wide degrowth of about 0.7 per cent.

Despite muted volumes in some categories, all segments reported improvement in realisations. The Enamels and Wood Coatings segment posted strong volume growth of around 7.9 per cent on a y-o-y basis, accompanied by a 3.5 per cent increase in realisations. The Primers, Distempers, and Others segment registered a volume growth of 2.2 per cent on a y-o-y basis, with realisations rising around 4.1 per cent, driven by a higher contribution from WPCC products.

In contrast, the Cement Paint and Putty segment witnessed a volume decline of around 10.3 per cent, though realisations improved by 1.9 per cent on a YoY basis. The Emulsions segment also saw a volume decline of 2.5 per cent, offset by a 3.8 per cent increase in realisations, supported by strong performance in premium products and an improved product mix.

Persistent weak market demand, industry degrowth, and widespread price cuts have weighed on growth and profitability in FY25, resulting in flat revenue performance, in line with expectations. However, we anticipate a gradual recovery in demand, with IPL well-positioned to benefit disproportionately.

Published on May 28, 2025