Indigo Paints shares surge 20% in two days; exchanges seek clarification on movement
Nuvama Institutional Equities said Indigo Paints reported its highest revenue growth in four quarters (up 4.2 per cent year-on-year) and EBITDA growth of 12.1 per cent YoY, the best in six quarters.
- Nov 11, 2025,
- Updated Nov 11, 2025 3:54 PM IST
Shares of Indigo Paints Ltd extended their rally on Tuesday, rising 4.39 per cent to settle at Rs 1,206.80. The stock has now gained 20.12 per cent in two sessions. Around 1.37 lakh shares changed hands on BSE, against a two-week average of 59,000, taking turnover to Rs 16.07 crore. The company's market capitalisation (m-cap) stood at Rs 5,753.50 crore.
Bourses BSE and NSE have sought clarification from the company regarding the sharp movement in volume. A response was awaited at the time of publishing this story.
The surge follows a positive response to the company's September-quarter (Q2 FY26) results, with brokerages citing improving margins, steady demand recovery and operational gains.
Nuvama Institutional Equities said Indigo Paints reported its highest revenue growth in four quarters (up 4.2 per cent year-on-year) and EBITDA growth of 12.1 per cent YoY, the best in six quarters.
Emulsion volumes and value rose 3.9 per cent and 7 per cent YoY, respectively, while the primer and distemper segments grew 10 per cent each. Margins improved, with gross and EBITDA margins expanding 107 and 106 basis points (bps) YoY, aided by a favourable product mix.
Nuvama noted that advertising and promotion (A&P) expenses formed 6.02 per cent of sales in H1 FY26, compared to 7.36 per cent in FY25. The brokerage expects a gradual recovery in the second half of FY26, supported by the wedding season, better consumer sentiment and stable input prices.
However, due to a weak first half, it trimmed FY27 and FY28 earnings estimates by 4.3 per cent and 3.5 per cent, respectively, and set a revised target price (TP) of Rs 1,505 (from Rs 1,560), maintaining a 'Buy' rating.
ICICI Securities also highlighted Indigo's strong showing versus peers. It said revenue growth of 4.2 per cent (YoY) outpaced Kansai Nerolac (0.1 per cent), Berger Paints (1.9 per cent) and Akzo Nobel (-15 per cent). The EBITDA margin expansion of 106 bps was also superior to competitors.
ICICI Sec cited key growth drivers for H2 FY26–FY27, including capacity expansion, distribution gains from Apple Chemie and softening competition and input costs. It expects sales and earnings CAGR of 9.6 per cent and 11.4 per cent, respectively, over FY25–28E, and maintained an 'Add' rating with a revised TP of Rs 1,330 from Rs 1,200 earlier.
Shares of Indigo Paints Ltd extended their rally on Tuesday, rising 4.39 per cent to settle at Rs 1,206.80. The stock has now gained 20.12 per cent in two sessions. Around 1.37 lakh shares changed hands on BSE, against a two-week average of 59,000, taking turnover to Rs 16.07 crore. The company's market capitalisation (m-cap) stood at Rs 5,753.50 crore.
Bourses BSE and NSE have sought clarification from the company regarding the sharp movement in volume. A response was awaited at the time of publishing this story.
The surge follows a positive response to the company's September-quarter (Q2 FY26) results, with brokerages citing improving margins, steady demand recovery and operational gains.
Nuvama Institutional Equities said Indigo Paints reported its highest revenue growth in four quarters (up 4.2 per cent year-on-year) and EBITDA growth of 12.1 per cent YoY, the best in six quarters.
Emulsion volumes and value rose 3.9 per cent and 7 per cent YoY, respectively, while the primer and distemper segments grew 10 per cent each. Margins improved, with gross and EBITDA margins expanding 107 and 106 basis points (bps) YoY, aided by a favourable product mix.
Nuvama noted that advertising and promotion (A&P) expenses formed 6.02 per cent of sales in H1 FY26, compared to 7.36 per cent in FY25. The brokerage expects a gradual recovery in the second half of FY26, supported by the wedding season, better consumer sentiment and stable input prices.
However, due to a weak first half, it trimmed FY27 and FY28 earnings estimates by 4.3 per cent and 3.5 per cent, respectively, and set a revised target price (TP) of Rs 1,505 (from Rs 1,560), maintaining a 'Buy' rating.
ICICI Securities also highlighted Indigo's strong showing versus peers. It said revenue growth of 4.2 per cent (YoY) outpaced Kansai Nerolac (0.1 per cent), Berger Paints (1.9 per cent) and Akzo Nobel (-15 per cent). The EBITDA margin expansion of 106 bps was also superior to competitors.
ICICI Sec cited key growth drivers for H2 FY26–FY27, including capacity expansion, distribution gains from Apple Chemie and softening competition and input costs. It expects sales and earnings CAGR of 9.6 per cent and 11.4 per cent, respectively, over FY25–28E, and maintained an 'Add' rating with a revised TP of Rs 1,330 from Rs 1,200 earlier.