Sirca Paints India Limited

Sirca Paints reported a robust Q4 FY25 with revenue from operations increasing 22.4% YoY to INR 101.1 crores, driven by a better product mix and strategic focus on high-value sales. Despite this, EBITDA margin slightly declined to 18.77% from 19.66% in Q4 FY24 due to heightened competition and increased schemes. Profit After Tax (PAT) for the quarter grew 13.1% YoY to INR 14.16 crores. For the full fiscal year FY25, the company recorded a top line of INR 374 crores, a 20% YoY growth, though EBITDA declined by 2% and PAT by 4% to INR 49 crores.

In March 2025, Sirca Paints completed the acquisition of Wembley, a brand established in 1961, known for sanding sealers and lacquers. This acquisition is strategic for enhancing pan-India distribution, expanding the product portfolio to include enamels, NC paint, and melamine, and entering the value segment of the market. Management expects the Wembley business to grow by almost 25% in FY26 and has launched a new thinner brand, Welcoat, under Wembley, anticipating a combined growth of 50% for Welcome and Welcoat.

The company acknowledged heightened competition, particularly from new entrants in the decorative paint segment, which led to increased scheme payouts and a slight decline in Q4 FY25 EBITDA margins. However, Sirca's core polyurethane wood coating business, which constitutes 85% of its revenue, is less impacted by this competition. Management anticipates margins in the wood coating segment to improve going forward^⏳, partly due to softening crude oil prices, which significantly impact solvent costs (40% of raw materials).

Sirca Paints provided optimistic guidance, projecting a consolidated growth of 25-30% for FY26. The main Sirca business is expected to grow 18-20%, while the combined Welcome and Welcoat brands are targeted for 50% growth. For the long term, the company aims for a CAGR of 25-30% and expects to report revenues in 'four digits' (over INR 1000 crores) within five years. Volume growth for FY26 is projected at 38-40%, outpacing revenue growth due to the lower per-liter realization of mass-market brands like Wembley and Welcome.

The company is aggressively expanding into emerging markets such as Madhya Pradesh, Chhattisgarh, Northeast, and South India through localized marketing and dealer activations. It is also onboarding senior workforce in these regions and securing new OEM partnerships in modular furniture and door manufacturing to strengthen its B2B ecosystem. In the short to medium term, Northern India (including Delhi NCR, UP, Haryana, Rajasthan, Punjab, J&K, Himachal) is expected to contribute 70% of revenues, with Delhi/NCR alone accounting for 40-45% of total sales.

Sirca Paints is investing in the advanced development of ultra-premium wall paint products in collaboration with OIKOS Italy, which is nearing launch. This initiative aims to open opportunities in the luxury home decor space. Additionally, the company is streamlining Wembley's production processes, expanding capacity, and reducing turnaround times to support its growth in the value segment.