Sirca Paints India just closed out FY26 with its strongest year yet — but the more interesting story is buried in the concall, not the press release.
Revenue crossed ₹492 crore, EBITDA margins expanded even as crude-linked raw material costs spiked, and management just laid out a very specific path to ₹1,000 crore by FY29.
Here’s what stood out, but before that:
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Sirca Paints – How a ‘trading company’ became India’s #3 premium wood coatings player
1. The headline numbers
- FY26 revenue: ₹492.48 cr (+31.79% YoY) | EBITDA: ₹98.88 cr (+46.62%) | PAT: ₹65.05 cr (+32.48%)
- Q4 FY26 alone: Revenue ₹134.29 cr (+33.07%), EBITDA margin at 19.17%
2. The segment math nobody puts in the press release
Management broke down FY26 revenue on the call: core Sirca business ~₹372 cr, Wembley + Welcome (acquired brands) ~₹120.5 cr (Wembley ₹74 cr, Welcome ₹46.5 cr). Within core Sirca, ~₹252 cr is now made in India vs ~₹124 cr still imported from Italy — a number management says will flip to ~95% domestic production this year.
3. Margin pressure is real, but temporary (per management)
Crude-linked raw materials (resins, solvents) drove short-term margin pressure. Sirca’s response: two price hikes of 5% each on the core brand (implemented in phases through the quarter), plus ~₹35/litre on Wembley/Welcome. Management’s guidance: EBITDA margins to stay in the 19-21% band going forward.
4. One raw material bottleneck to watch
NC cotton (used in Wembley’s nitrocellulose products) is in short supply — some of it is reportedly being diverted to defense-related demand. Management expects this to ease once a supplier’s new unit comes online in June. Until then, it’s specifically a Wembley-side constraint, not a Sirca-core one.
5. The growth targets on record
- Revenue CAGR guidance: 25-30%
- ₹1,000 crore revenue vision — flagged as achievable “3 years from now” (i.e., FY29)
- Export push under the new “Wembley Valentino” brand, targeting Middle East markets, expected to start contributing in Q1 and reach 3-4% of revenue this year
6. Working capital is elevated vs peers — and management explained why
An analyst pointed out Sirca’s working capital runs nearly 2x Asian Paints’. Management’s explanation: acquisition-related inventory build-up (Wembley/Welcome transition) plus ~6 months of imported acrylic inventory held during the Italy-to-India production shift. Both are expected to normalize as India production ramps and the Wembley transition period (tied to the original owners’ payment terms) completes.
We track companies like this — solid balance sheets, low-key execution, before they show up on everyone’s radar — and break down the numbers that actually matter in our research.
As always, this is not a stock recommendation — This note is for informational purposes only and not a buy/sell recommendation. Please do your own due diligence before investing.
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