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Indigo Paints has attracted investor attention after Motilal Oswal reiterated a Buy rating with a ₹1,400 target. While Q3 FY26 revenue growth remained modest at 3% YoY, demand has improved significantly since November 2025 with double-digit value growth. For investors, the stock represents a play on decorative paint demand recovery, though competitive pressures remain a key risk.
Synopsis: Indigo Paints has come into focus after Motilal Oswal Financial Services reiterated a Buy rating with a target price of ₹1,400. Despite muted Q3 FY26 revenue growth of 3% YoY, the company reported improving demand trends from November 2025 onward, with double-digit value growth. For investors, the stock represents a play on the recovery of the decorative paints cycle, though competitive intensity remains a key monitorable.
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India’s decorative paints industry is closely linked to housing demand, renovation cycles, and festive-season consumption. After a period of muted demand and seasonal disruptions, early signs of recovery are emerging across the sector. Among the companies drawing investor attention is Indigo Paints, a fast-growing player in the decorative paints space.
The stock has come into focus after Motilal Oswal Financial Services reiterated a bullish stance, citing improving demand trends and long-term growth potential.
Indigo Paints reported 3% year-on-year standalone sales growth in Q3 FY26, though this came on a weak base, as reflected in stock updates on Moneycontrol.
| Metric | Performance |
|---|---|
| Standalone sales growth | +3% YoY |
| Consolidated sales | ₹360 crore |
| Consolidated growth | +5% YoY |
| Subsidiary (Apple Chemie) growth | +32% YoY |
| Stock price (recent) | ~₹976 |
The relatively muted revenue growth was attributed to:
While the quarter started slow, demand showed a clear improvement from November 2025.
This trend indicates early signs of sector recovery, especially in the decorative paints segment.
Indigo’s subsidiary, Apple Chemie, delivered strong growth.
| Segment | Growth |
|---|---|
| Apple Chemie sales | +32% YoY |
This growth helped support consolidated numbers despite muted core demand early in the quarter.
Despite limited pricing power in the near term, the company expects:
This suggests improving volume traction rather than price-led growth.
Motilal Oswal Financial Services has reiterated a Buy rating on the stock.
| Parameter | Value |
|---|---|
| Target price | ₹1,400 |
| Valuation basis | 35× Dec’27E EPS |
| Investment view | Demand-recovery play in paints sector |
This implies meaningful upside from current levels if demand recovery sustains.
Investors should monitor:
The changing competitive landscape in the paints sector remains a key monitorable.
Analysts believe Indigo Paints is entering a recovery phase after a weak demand cycle. If the current momentum sustains into FY27, the company could deliver strong volume-led growth, though competitive intensity will remain a critical factor.
Indigo Paints’ investment case currently hinges on demand recovery and volume growth.
Core triggers:
For investors, the stock represents a mid-cap consumption and housing cycle recovery play.
Popular platforms for trading stocks like Indigo Paints:
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