Buy Indigo Paints; target of Rs 1400: Motilal Oswal

Motilal Oswal is bullish on Indigo Paints recommended buy rating on the stock with a target price of Rs 1400 in its research report dated February 16, 2026.

Broker Research

February 17, 2026 / 12:26 IST

Buy

Motilal Oswal's research report on Indigo Paints

Indigo Paints (INDIGOPN) reported standalone sales growth of 3% YoY in 3QFY26 on a soft base (-4%). The sluggish revenue growth was attributed to muted demand in Oct’25, the impact of early Diwali, and the delayed monsoon. However, demand has seen consistent improvement from Nov’25 onwards, with INDIGOPN recording double-digit value growth. The trend has sustained over the last three months (Nov’25–Jan’26), for the first time in the last two years, indicating early signs of demand recovery. While this strengthens the industry’s recovery case for 2026, sustained momentum will need to be closely monitored over the coming months. Price increases are unlikely; however, the company still expects doubledigit revenue growth in 4QFY26 and FY27. Apple Chemie (subsidiary) sales grew 32% YoY. Consolidated sales rose 5% YoY (base -3%) to INR3.6b (miss).

Outlook

However, the changing competitive landscape will be a key monitorable. We reiterate our BUY rating with a revised TP of INR1,400 (premised on 35x Dec’27E EPS).

For all recommendations report, click here