MUMBAI–Indian paint manufacturer Indigo Paints reported a 47% decline in net profit for the quarter ended September 2026, as rising revenue failed to offset pressure on operating earnings and profit margins.
The company posted a net profit of Rs 13.3 crore for the second quarter of fiscal 2027, down from Rs 25.1 crore in the same period last year, according to a stock exchange filing.
Revenue from operations increased 15% year over year to Rs 359 crore, compared with Rs 312 crore in the corresponding quarter of fiscal 2026.
Despite the revenue growth, operating profitability weakened significantly. Earnings before interest, taxes, depreciation and amortization (EBITDA) declined 33.5% to Rs 31 crore from Rs 47 crore a year earlier.
The company’s EBITDA margin contracted to 8.7% from 14.9%, indicating that higher sales did not translate into stronger operating earnings.
Although quarterly profitability declined, Indigo Paints reported revenue and earnings growth for the first six months of fiscal 2027.
On a standalone basis, revenue from operations rose 16.4% to Rs 690.5 crore for the six months ended September 30, 2026, compared with Rs 593.4 crore during the same period last year.
Standalone EBITDA, excluding other income, increased 3.2% to Rs 92.3 crore, while net profit climbed 8.3% to Rs 56.2 crore from Rs 51.9 crore in the previous year.
For the first half, the company reported a gross profit margin of 41.9%, an EBITDA margin of 13.4% and a net profit margin of 8%.
Consolidated results also showed growth during the April-September period, with revenue increasing 17.3% year over year to Rs 728.4 crore.
Consolidated EBITDA, excluding other income, rose 2.4% to Rs 93 crore, while net profit increased 7.4% to Rs 55.1 crore.
However, consolidated EBITDA margin stood at 12.8%, while net profit margin was 7.4%, reflecting continued pressure on profitability despite higher sales.
The results highlight a divergence between Indigo Paints’ revenue growth and earnings performance, with the company maintaining positive first-half results even as second-quarter margins weakened.
Shares of Indigo Paints closed 2.06% lower at Rs 991 on October 30, declining Rs 20.80 from the previous closing price ahead of the earnings announcement. (Source: IANS)
