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INDIGO Paints Ltd Investor Presentation (Q2 FY27 & H1 FY27)
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Disclaimer Certain statements and opinions with respect to the anticipated future performance of Indigo Paints Ltd(“Indigo”) in the presentation (“forward-looking statements”), which reflect various assumptions concerning the strategies, objectives and anticipated results may or may not prove to be correct. Such forward-looking statements involve a number of risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These include, among other factors, changes in economic, political, regulatory, business or other market conditions. Such forward-looking statements only speak as at the date the presentation is provided to the recipient and Indigo is not under any obligation to update or revise such forward-looking statements to reflect new events or circumstances. No representation or warranty (whether express or implied) is given in respect of any information in this presentation or that this presentation is suitable for therecipient’s purposes. The delivery of this presentation does not imply that the information herein is correct as at any time subsequent to the date hereof and Indigo has no obligation whatsoever to update any of the information or the conclusions contained herein or to correct any inaccuracies which may become apparent subsequent to the date hereof. Certain figures may have been rounded off to the nearest decimal.
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3 3 Contents ▪ Financial Update - Standalone (Q2 FY27 & H1 FY27) - Consolidated (Q2 FY27 & H1 FY27) ▪ KPI ▪ Growth Drivers ▪ Sustainability initiatives ▪ Outlook
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4 Growth Steady, Profitability Hit by Product Mix and Material Costs Revenue from Operations Rs. 340.5 Cr 14.1% YoY Growth Gross Margin % 38.5% Vs 45.1% in Q2 FY26 A&P as % of Revenue from Ops 5.4% EBITDA Margin % 8.9% EBITDA Rs. 30.3 Cr -33.8% YoY Growth PAT Margin % 4.0% PAT Rs. 13.8 Cr -45.9% YoY Growth Standalone | Q2 FY27 Financial update KPIs Growth drivers YoY increase from 5.3%
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5 Growth Steady, Profitability Hit by Product Mix and Material Costs Revenue from Operations Rs. 690.5 Cr 16.4% YoY Growth Gross Margin % 41.9% Vs 45.6% in H1 FY26 A&P as % of Revenue from Ops 4.8% EBITDA Margin % 13.4% EBITDA Rs. 92.3 Cr 3.2% YoY Growth PAT Margin % 8.0% PAT Rs. 56.2 Cr 8.3% YoY Growth Standalone | H1 FY27 Financial update KPIs Growth drivers YoY decrease from 6.0%
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6 Quarterly EBITDA Margin Trends… 15.4% 17.9% 22.5% 15.6% 14.8% 17.5% 23.4% 14.8% 15.3% 19.4% 23.0% 17.7% 8.9% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2 FY27 Indigo Paints Quarterly EBITDA% Financial update KPIs Growth drivers Historically, for Indigo Paints, EBITDA Margin peaks in Q4 as the product mix improves Note: EBITDA% computed on Standalone basis
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7 Growth Steady, Profitability Hit by Product Mix and Material Costs Financial update KPIs Growth drivers
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8 Financial Analysis Financial update KPIs Growth drivers 1 2 3 4 5 For the Q2 FY27, While the gross revenue growth was a robust 18.8%; an unfavourable product mix resulted in higher discounts, leading to lower net revenue growth of 14.1% for the quarter. For the H1 FY27, net revenue growth was a healthy 16.4% over H1 FY26 The PAT% for the quarter was 4.0% compared to 8.5% in Q2 FY26. Other income affected due to adverse bond yield movement The PAT% for H1 FY27 was 8.0% compared to 8.6% in H1 FY26. and PAT was Rs. 56.2 Cr vs Rs. 51.9 Cr in H1 FY26 The A&P expense as a % of revenue was 5.4% in Q2 FY27 vs. 5.3% in Q2 FY26. A&P spend was Rs. 18.3 Cr vs Rs 15.7 Cr in Q2 FY 26. Higher spends on media & BTL engagement activities The EBITDA% for the quarter was 8.9% vs. 15.3% in Q2 FY26. EBITDA was mainly weighed down by gross margin erosion, compounded by higher A&P investment The EBITDA% for H1 FY27 was 13.4% vs. 15.1% in H1 FY26. Double impact on Gross Margins. 1) unfavourable product mix 2) material cost headwinds from high-cost raw material inventory carried over from last quarter
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9 9 Contents ▪ Financial Update - Standalone (Q2 FY27 & H1 FY27) - Consolidated (Q2 FY27 & H1 FY27) ▪ KPI ▪ Growth Drivers ▪ Sustainability initiatives ▪ Outlook
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10 Financial update KPIs Growth drivers Growth Steady, Profitability Hit by Product Mix and Material Costs
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11 Financial snapshot for last 5 years 906.0 1,073.3 1,306.1 1340.7 1405 728.4 FY22 FY23 FY24 FY 25 FY 26 H1 FY27 136.0 181.5 238.1 233.5 254.8 93 FY22 FY23 FY24 FY25 FY26 H1 FY27 84.1 115.6 148.8 142.2 152.2 55.1 FY22 FY23 FY24 FY25 FY26 H1 FY27 18.4 20.9 22.8 19.0 17.6 17.7 FY22 FY23 FY24 FY 25 FY26 H1 FY27 Sales (INR Cr) PAT (INR Cr) EBITDA (INR Cr) RoCE (%) Financial update KPIs Growth drivers Note: Financials on a consolidated basis
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12 12 Contents ▪ Financial Update - Standalone (Q2 FY27 & H1 FY27) - Consolidated (Q2 FY27 & H1 FY27) ▪ KPI ▪ Growth Drivers ▪ Sustainability initiatives ▪ Outlook
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13 Product category snapshot for Q2 FY27 Financial update KPIs Growth drivers Product Value growth (%) Volume growth (%) Putty + Cement Paints 12.6% -0.2% Emulsions 13.3% 10.4% Enamels and wood coatings 17.8% 8.2% Primers + Distempers + Others 29.4% 9.4% YoY growth for Q2 FY27 vs. Q2 FY26
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14 Financial update KPIs Growth drivers Continued network expansion Active dealers and depots (#) 51 53# of depots 9,114 9,510 53 9,842Active Tinting m/c Active Dealer count 17,148 17,745 18,105 18,500 18,718 18,598 18,371 18,556 18,914 19,134 19,352 19,382 19,730 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 53 10,210 54 10,555 54 10,772 54 11,000 54 11,301 11,656 54 11,913 55 12,129 55 12,395 55 12,718 56 • New depot opened at Bikaner (4th in Rajasthan)
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15 15 Contents ▪ Financial Update - Standalone (Q2 FY27 & H1 FY27) - Consolidated (Q2 FY27 & H1 FY27) ▪ KPI ▪ Growth Drivers ▪ Sustainability initiatives ▪ Outlook
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16 Future growth drivers – Indigo Paints 2.0 Strategy I. Product innovation II. Geographic expansion III. Capacity augmentation -being future ready • Develop differentiated products to grow market share • Expand product portfolio on the back of inorganic growth initiatives • Grow in Tier I and II cities • Augment engagement with painters & contractors • Expand in the existing strategic locations • State of the art plant with automated material handling • Ramp up salesforce • Step up brand promotion and engage with influencer community • Increase customer engagement through digital channel Financial update KPIs Growth drivers IV. Brand & marketing focus • Expand into non decorative segment. Foray into adjacencies like construction chemicals & waterproofing. • Tapping high growth India infrastructure segment through Apple Chemie India Ltd V. Expansion into adjacencies
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17 Geographical Expansion | Deepening our Network Tinting machines Active dealers Depots Financial update KPIs Growth drivers 56 19,730 12,718 States28 Manufacturing plants6 Fortifying our presence in Tier 3,4 cities and fast growing in Tier 1,2 cities
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18 Capacity Augmentation | Expansion Progress Financial update KPIs Growth drivers • Trial production at the water based plant (90,000 KLPA capacity) started in Sep’26. • Production commenced in Solvent based plant & Putty Plant in FY 26. Upcoming Plant at Jodhpur Upcoming Plants Existing Plants Jodhpur Kochi Pudukkottai
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19 Marketing Focus | Enhancing Digital Outreach & New Advertisements Financial update KPIs Growth drivers
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20 Marketing Focus | Expanding Indigo Colour Canvas Stores Financial update KPIs Growth drivers Set up 19 Colour Canvas Stores across India till date.
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21 Apple Chemie| Healthy revenue momentum; margins constrained by elevated raw material costs…. Financial update KPIs Growth drivers • WPCC products for retail channel launched and marketed under Indigo brand (Protect Plus Series) while Apple Chemie continues to target the B2B, fast growing infrastructure segment. • Apple Chemie is the first construction chemical manufacturer to get accreditation from NABL. • Robust Q2 FY27 Growth Offset by Margin Headwinds from Rising RM Costs and promotional expenses. Revenue (INR Cr) 13.6 18.4 27.6 38.1 Q2 FY26 Q2 FY27 H1 FY26 H1 FY27
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22 22 Contents ▪ Financial Update - Standalone (Q2 FY27 & H1 FY27) - Consolidated (Q2 FY27 & H1 FY27) ▪ KPI ▪ Growth Drivers ▪ Sustainability initiatives ▪ Outlook
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23 ESG Updates Transitioning to renewable energy - Current installed capacity of 350 kW spread across Pune & Kochi - 1.2 GW solar power plant under commissioning in Jodhpur Community Service -Unique initiative involving Painters in “Community service” to undertake painting of Government schools in Tier 2/3 towns. Over 260 schools painted through this service
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24 Education of underprivileged girls Healthcare for the underprivileged Health benefit program for the Painter Community Education assistance & career guidance provided to about 480 girls through Payal Jalan Trust – Educare initiative Continuing to provide healthcare for the underprivileged through Cancure foundation near Kochi Factory Extended the health benefit program to painter community across the country. Over 30,000 painter families covered under this program CSR SkillUp Program A new initiative to empower painting professionals to brush up soft skills and assist in their business development initiatives. Trained over 2,360 painting professionals.
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25 25 Contents ▪ Financial Update - Standalone (Q2 FY27 & H1 FY27) - Consolidated (Q2 FY27 & H1 FY27) ▪ KPI ▪ Growth Drivers ▪ Sustainability initiatives ▪ Outlook
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26 Outlook 1 2 3 4 5 Driven by a strong dealer network revival, we anticipate improved growth and product mix in H2 FY27 Apple Chemie - Expect the growth momentum to sustain - Gross margins to improve by Q3 FY 27 - Extending footprint into new territories . Q3 and Q4 should see EBITDA margins normalize, with inventory calibrated to market conditions and gross margin improvement driving the second-half recovery The impact of high cost raw material inventory has been absorbed, leaving us with a clean base for the quarters ahead. Expect to reclaim the pole position on the GM% front during the seasonally strong Q3 & Q4 Our commitment to brand building continues, with disciplined annual A&P spend allocated across ATL & BTL engagements
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