New Delhi: Indigo Paints Limited on Sunday sought to calm investor and industry nerves over competitive pressures from Birla Opus, saying a feared collapse in profitability has not materialised despite heightened price competition and aggressive discounting.
Speaking on the company’s Q3 FY26 earnings call, Chairman Hemant Jalan made it clear that while the entry of Birla Opus — backed by the deep pockets of the Aditya Birla Group — initially stoked concerns of an impending price war, those concerns have not played out in reality. “Time has borne itself out that we were right. Nobody’s profitability has been impacted,” Jalan said, signalling confidence in both Indigo’s competitive positioning and industry resilience.
Competitive intensity but stable economics
Birla Opus entered the paints market nearly two years ago with steep discounts, positioning itself as one of the lowest-priced offerings on shelves. That move prompted analysts to warn of margin erosion across the sector, especially for smaller players. But according to Indigo’s management, the worst-case scenario has not unfolded.
Even after a modest 2–3% price increase by Birla Opus, the product remains among the most competitively priced in the market. Yet broader industry margins — anchored by established players with strong brands and distribution — have stayed intact. Jalan noted that competing pricing actions by rivals such as selective cuts or segment-specific adjustments are “tactical rather than structural”, a key distinction that suggests no long-term disruption to profitability.
Indigo has responded to competitive pressures not by slashing prices across the board, but by leaning into its relatively high gross margins — reported above 47% — to fund calibrated trade incentives. This has allowed the company to defend and grow share without sacrificing profitability.
Jalan emphasised that maintaining pricing discipline and margin advantage remains central to Indigo’s strategy.