Indigo Paints (INDIGOPNTS) Q2 24/25 earnings summary

Executive summary

• Achieved sixth consecutive quarter of industry-leading growth, with consolidated revenue up 7.4% year-over-year in Q2 FY25, despite a challenging demand environment for the industry.

• Maintained highest gross margin among paint companies, though margins compressed year-over-year due to industry-wide price cuts and higher depreciation from new plant commissioning.

• Standalone sales grew 6.7% year-over-year, maintaining a lead over industry growth rates.

• Expanded dealer network and tinting machine deployment, supporting deeper market penetration and fulfillment efficiency.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, were approved, with statutory auditors issuing an unmodified review report.

Financial highlights

• Consolidated Q2 FY25 revenue up 7.4% YoY to Rs 299.5 crore; standalone revenue up 6.7% to Rs 288.5 crore.

• Standalone Q2 EBITDA rose 1.9% YoY to Rs 42.6 crore; EBITDA margin at 14.8% (down from 15.2%).

• Consolidated Q2 FY25 EBITDA margin at 13.9% (down from 15.1% YoY); PAT margin at 7.3% (down from 9.0% YoY).

• Consolidated Q2 FY25 net profit fell 12.1% YoY to Rs 22.3 crore; standalone net profit down 7.7% to Rs 24.1 crore.

• H1 FY25 consolidated revenue grew 7.6% to Rs 610.5 crore; net profit declined 13.9% to Rs 48.9 crore.

Outlook and guidance

• Expects to continue outpacing industry growth, with demand improvement anticipated in Q3 FY25.

• Margin expansion expected in Q3 FY25 due to price hikes and festive season; full-year EBITDA margin to increase slightly.

• Confident in expanding market share with broad product portfolio and robust distribution as demand picks up.

• Focus on improving margin profile for Apple Chemie while maintaining growth momentum.

• Continued focus on operational efficiency and margin improvement.