Indigo Paints (INDIGOPNTS) Q4 24/25 earnings summary

Executive summary

• Achieved modest revenue growth in FY25, with standalone revenue up 1.8% and consolidated revenue up 2.7% year-over-year, despite a challenging demand environment.

• Profitability improved in Q4 FY25, with standalone EBITDA margin at a record 23.4% and PAT margin at 15.3%, though full-year PAT declined modestly.

• Maintained industry-leading gross margins and focused on premiumization, network expansion, and digital outreach to drive future growth.

• Audited consolidated and standalone financial results for FY25 were approved with unmodified audit opinions.

• Board recommended a final dividend of Rs 3.50 per share for FY25, subject to shareholder approval.

Financial highlights

• Standalone Q4 FY25 revenue: ₹367.2 Cr (0.3% YoY growth); FY25: ₹1,277.2 Cr (1.8% YoY growth); consolidated FY25 revenue: ₹1,340.7 Cr (2.7% YoY growth).

• Standalone Q4 FY25 EBITDA: ₹85.9 Cr (4.4% YoY growth); FY25: ₹231.6 Cr (-0.5% YoY); consolidated FY25 EBITDA: ₹233.5 Cr (-1.9% YoY).

• Standalone Q4 FY25 PAT: ₹56.9 Cr (6.3% YoY growth); FY25: ₹143.9 Cr (-3.2% YoY); consolidated FY25 PAT: ₹142.2 Cr (-4.5% YoY).

• Q4 FY25 consolidated EBITDA margin at 22.6%, PAT margin at 14.6%; standalone Q4 FY25 EBITDA margin at 23.4%, PAT margin at 15.3%.

• A&P spend as a percentage of revenue reduced to 5.0% in Q4 and 6.4% for FY25.

Outlook and guidance

• Demand sentiment improved in Q4 FY25 and is expected to return to normal or double-digit growth by Q2 FY26.

• EBITDA margins expected to improve in FY26 due to lower raw material costs and better product mix.

• Strategic focus on expanding dealer network, tinting machine population, and premium/differentiated products.

• Apple Chemie margins expected to recover with improved product mix and geographic focus.