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Indigo Paints is targeting 25% annual revenue growth

ICICIdirect Research 20 Aug 2026 DISCLAIMER

News: As per interview on media, Indigo Paints is targeting 25% annual revenue growth, well ahead of the industry’s expected 13–14% growth, as it prioritises revenue growth over margins. Indigo, which currently has around 3% share of India’s decorative paints market, aims to grow at least 10 percentage points faster than the industry. It is also expanding beyond decorative paints into wood coatings, waterproofing, industrial coatings and auto refinish, while increasing its stake in Apple Chemie India to 62% in FY26 from 51% in FY25.

View: The commentary is in-line with management’s strategy of pursuing an aggressive growth path, with revenue growth taking precedence over margins in the near term. We estimate 14% revenue CAGR over FY26–28E, supported by volume growth, distribution expansion and higher marketing spends. Along with marketing spends, the company continues will leverage capacity augmentation and distribution expansion. Though gross margins are expected to taper a bit due to higher trade margins and discounts, improving operating leverage should keep EBITDA margins at 18–19%. With capacity expansion largely completed and no major capex planned until FY29, FCF is expected to improve over the next 2 years.

Impact: Positive

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