Indigo Paints targets ₹160-170 crore annual free cash flow as capex cycle winds down
Indigo Paints is trialling its Jodhpur plant ahead of festive demand and plans to stabilise operations by September 2026. It will also roll out a full wood-coatings range across five to six states and raise its holding in Apple Chemie by 11%.
What happened
Indigo Paints expects ₹160-170 crore annual free cash flow as its capex cycle ends. Jodhpur plant trials are underway ahead of festive demand, while the company
Key facts
- Annual free cash flow: ₹160-170 crore for at least 3 years
- April-June 2026 revenue growth: 20%
- April-June 2026 EBITDA growth: 40%
- April-June 2026 net profit growth: 60%
- Wood coatings revenue contribution: 3%-4%
- Larger peers' wood coatings contribution: 8%-10%
- New wood-coatings sales team: five to six states
- Indigo Paints stake increase in Apple Chemie: 11%
- Share price: ₹1,174.90
- Market capitalisation: ₹5,608.58 crore
- Stock gain over past year: more than 6%
Why this matters
Raising the Apple Chemie stake alongside a multi-state wood-coatings launch signals a push to build adjacencies and deepen control over capabilities that can extend Indigo Paints beyond core decorative paints.
What to watch
- Jodhpur plant commissioning milestones, commercial production timing and utilisation levels through September 2026.
- Quarterly operating cash flow, capex, working-capital days and progress toward ₹160-170 crore annual free cash flow.
- Gross-margin movement versus titanium dioxide, crude-linked inputs and competitive discounting.
- Wood-coatings rollout pace, dealer adoption, repeat orders and contribution to revenue mix in launch states.
- Apple Chemie ownership increase, integration actions and evidence of distribution or product cross-sell synergies.
- Industry demand during the festive and housing-renovation seasons, particularly in tier-2 and tier-3 markets.
- Prioritise Jodhpur production stability, utilisation ramp and freight-cost optimisation before adding major new capacity.
- Use lower capex requirements to expand dealer reach in underpenetrated markets and improve tinting-machine and service coverage.
- Launch wood coatings selectively across the initial five to six states, using existing paint dealers where possible to limit customer-acquisition costs.
- Integrate the additional Apple Chemie stake to deepen waterproofing and construction-chemicals cross-selling rather than treating it as a standalone investment.
- Protect cash conversion through tight inventory, receivables and dealer-credit management during festive demand and new-category rollout.