Indigo Paints vs JG Chemicals Q3 FY26

Indigo Paints reported Q3 FY26 standalone revenue of ₹338.9 crore, up 3.5% YoY, with EBITDA margin expanding 190 bps to 19.4% driven by premium mix shift and cost controls. PAT (ex-exceptional) grew 11.2% to ₹40.5 crore. Volume growth was led by enamels (+20.2%) and waterproofing (now 7% of sales), while emulsions saw a slight volume dip. Management highlighted three consecutive months of double-digit value growth (Nov–Jan) and expects this momentum to sustain into Q4. The new Jodhpur water-based plant is delayed to June 2026, but existing capacity is sufficient. Key risk: demand recovery may falter if macroeconomic headwinds persist or competitive intensity from new entrants escalates.

Guidance read

Double-digit value growth expected in Q4 FY26: Management expects Q4 FY26 to deliver close to double-digit value growth, building on three consecutive months of double-digit growth (Nov–Jan). New water-based plant at Jodhpur to start production by June 2026: The 90,000 KL per annum water-based plant is delayed but expected to commence production in June 2026. Leverage gross margin advantage to drive higher sales growth: Management plans to sacrifice ~1 percentage point of gross margin to offer higher trade discounts, aiming for disproportionately higher sales growth.

Risk read

Key risks include Demand recovery may be fragile — The recent uptick in demand could reverse if macroeconomic conditions worsen or consumer spending slows again.; Increased competitive intensity from new entrants — New entrants like Birla Opus continue aggressive pricing and marketing, potentially pressuring market share and margins.; Delay in Jodhpur plant may impact future capacity — The new water-based plant is delayed to June 2026, which could constrain capacity if demand accelerates sharply..

Promise ledger

Scorecard data is being built as historical quarters are processed.

JG Chemicals delivered its highest-ever quarterly revenue of ₹249 crore (up 19% YoY), EBITDA of ₹26 crore, and PAT of ₹18 crore, driven by strong tire industry demand post-GST rate cuts, improved product mix, and higher capacity utilization. The company is executing a greenfield expansion in Gujarat (Phase I capex ~₹45-50 crore, revenue potential ~₹400 crore) expected to commission in Q2 FY27, alongside a brownfield expansion at Naidupa. Management targets doubling revenue every 3-4 years and improving EBITDA margins to 13-14% over 2-3 years via operating leverage and non-rubber mix shift to 70:30. A pilot recycled rubber project shows encouraging initial results. Key risk: zinc price volatility could impact working capital, though management expects inventory gains to flow in Q4.

Guidance read

Gujarat greenfield plant commissioning in H1 FY27: Phase I of the Gujarat plant (40,000 MTPA capacity) expected to commission in Q2 FY27, with full utilization in 2-2.5 years. Revenue target of ₹900-950 crore for FY26: Based on 9M run rate of ~₹700 crore, management expects FY26 revenue to exceed ₹900 crore, potentially reaching ₹950 crore. EBITDA margin expansion to 13-14% in 2-3 years: Core EBITDA margin of 10.5-11% expected to improve to 13-14% through operating leverage and higher specialty product mix. Non-rubber revenue mix target of 30% in 2-3 years: Management targets increasing non-rubber contribution from current 15-17% to 30% over the next 2-3 years.

Risk read

Key risks include Zinc price volatility impacting working capital — Rising zinc prices may increase working capital requirements; management believes internal cash flows are sufficient but risk remains if prices spike sharply.; Slower ramp-up of new Gujarat plant — Commissioning in Q2 FY27 with full utilization expected in 2-2.5 years; any delays or slower customer uptake could impact revenue growth.; Duty removal on zinc dross not yet implemented — Budget removed import duty on zinc scrap but not on zinc dross, a key raw material; management is lobbying for correction, but uncertainty remains.; Zinc sulfate demand sensitivity to farmer pricing — High zinc and sulfuric acid prices are causing farmers to defer purchases, leading to slower offtake; recovery depends on price stabilization..

Promise ledger

Scorecard data is being built as historical quarters are processed.