Indigo Paints shares zoom over 17%; here's what brokerages say
Today's rally came after the company's September quarter (Q2 FY26) earnings drew a positive response from brokerages, citing improving margins, steady demand recovery and operational gains.
- Nov 10, 2025,
- Updated Nov 10, 2025 2:53 PM IST
Shares of Indigo Paints Ltd surged sharply in Monday's trade, jumping 17.43 per cent to hit a high of Rs 1,179.85 on BSE. The stock was last seen trading 16.65 per cent higher at Rs 1,172, though it remains down 15.28 per cent on a year-to-date (YTD) basis.
Today's rally came after the company's September quarter (Q2 FY26) earnings drew a positive response from 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 surged sharply in Monday's trade, jumping 17.43 per cent to hit a high of Rs 1,179.85 on BSE. The stock was last seen trading 16.65 per cent higher at Rs 1,172, though it remains down 15.28 per cent on a year-to-date (YTD) basis.
Today's rally came after the company's September quarter (Q2 FY26) earnings drew a positive response from 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.