ICICI Securities has issued a buy rating on Indigo Paints with a target price of ₹1,200 in its research report dated February 15, 2026. According to the brokerage's analysis, the company demonstrated strong performance with revenues growing 4.7% year-on-year, primarily driven by Apple Chemie's revenue expansion of 31.6% in construction chemicals and waterproofing segments. The recommendation is based on the company's reported market share gains and margin expansion for a second straight quarter.
As reported by ICICI Securities, Indigo Paints outperformed major industry peers with revenue growth of 4.7% YoY compared to competitors' performance: APNT at +3.7%, Kansai at +3.1%, Berger at +0.3%, and Akzo at -13.6% YoY. The brokerage highlighted that Indigo has maintained consistent growth momentum while other established players showed varied performance levels.
According to ICICI Securities' research, Indigo Paints is positioned for continued growth through several strategic initiatives. The company has commenced a solvent-based paints plant and brownfield capex for putty, while also starting the Nagpur plant for Apple Chemie and being on track to commence water-based paint plant at Jaipur by June 2026. The brokerage expects steady distribution expansion-led revenue growth for Apple Chemie over the next 4-6 quarters.
ICICI Securities projects strong financial performance for Indigo Paints, modeling sales and earnings CAGR of 9.1% and 10.2% respectively over FY26-28E. The brokerage maintains its buy rating with a DCF-based revised target price of ₹1,200, implying a target P/E of 30x FY28E. The recommendation reflects confidence in the company's operational improvements and future growth prospects.
As reported by ICICI Securities, Indigo Paints continues investing in distribution infrastructure with active dealers expanding by 2.9% and tinting machines increasing by 10.6% year-on-year. The company's focus on distribution expansion, combined with its strategic capacity additions and market share gains, supports the positive outlook for sustained growth in the competitive paints industry.
