Indigo Paints (INDIGOPNTS) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue declined 4% year-over-year due to persistent demand slowdown, while nine-month revenue grew 3.5% year-over-year; gross margins remained strong at 47.2% in Q3 FY25, though slightly lower than last year.

• EBITDA and PAT declined year-over-year, with Q3 FY25 consolidated EBITDA margin at 16.7% and PAT margin at 10.4%; nine-month EBITDA margin at 15.3% and PAT margin at 8.8%.

• Emulsion segment showed resilience with positive value and volume growth, driven by premium products, while other segments saw declines.

• Active dealer count reached 18,600 and printing machine population 10,800 as of December 2024.

• Key management changes included the resignation of the Company Secretary and Compliance Officer, effective February 18, 2025, and the appointment of a new Company Secretary effective April 16, 2025.

Financial highlights

• Standalone Q3 FY25 revenue: ₹327.5 Cr (-4.0% YoY); consolidated Q3 FY25 revenue: ₹342.6 Cr (-3.2% YoY); nine-month consolidated revenue: ₹953.1 Cr (+3.5% YoY).

• Standalone Q3 FY25 EBITDA: ₹57.3 Cr (-5.9% YoY); consolidated Q3 FY25 EBITDA: ₹57.2 Cr (-8.1% YoY); nine-month consolidated EBITDA: ₹146.1 Cr (-4.8% YoY).

• Standalone Q3 FY25 PAT: ₹36.5 Cr (-3.3% YoY); consolidated Q3 FY25 PAT: ₹35.8 Cr (-4.5% YoY); nine-month consolidated PAT: ₹84.8 Cr (-10.1% YoY).

• Treasury investments stood at INR 196 crore as of December 31, 2024, after funding all CapEx internally.

• Standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were approved with an unmodified review report.

Outlook and guidance

• January 2025 showed significant improvement in year-over-year growth, with expectations of gradual recovery and potential high single-digit or low double-digit growth in Q4 FY25.

• Management anticipates demand recovery supported by favorable monsoons, government stimulus, and lower interest rates.

• Expects margin expansion with higher growth in premium products and improved product mix.

• Sequential improvement in EBITDA margin and Apple Chemie profitability anticipated in Q4 FY25.

• No plans to introduce latex-based paints, as current market feedback shows limited traction.