Sirca Paints India Limited (SIRCA) Q4 2026 Earnings Call Transcript

Hello, and good evening, everyone, and thank you for joining us today for SirkaPaint's India Limited Q4 FY26 results call. I am Drishti from FinPortal Investor Relations team, and it's my pleasure to welcome you all. We are joined today by senior members of the management team, including Mr. Sanjay Agrawal, Chairman and MD, Mr. Apoorwa Agrawal, Joint Managing Director, Mr. Hira Kumar, Company Secretary, and Ms. Shalu Arora, CFO. So, let me now hand it over to CFO Ms. Shalu Arora to take you to the financial highlights. Over to you, ma'am.

Thank you, Dushrik. Hi, good evening, everyone, and thanks for joining for our quarterly results discussion. I'm pleased to share with you the financials performance of Sirka Pains India Limited for the fourth quarter of FY25-26 on a standalone basis. Revenue from operations increased to 134.29 crores in Q4 FY26 from 100.92 CR in the same quarter last year. This represents a robust growth of 33.07% YOY. This strong performance was primarily driven by the differentiated portfolios, premium positioning, and deeper market penetrations. Moving on to our profitability metrics for the quarter, EBITDA for Q4 FY26 increased to 25.74 crores from 18.97 crores in the same quarter last year, reflecting a healthy growth of 35.6% year-on-year. Our EBITDA margin for the quarters stood at 19.17% compared to 18.8% in Q4 FY25. Looking at the bottom line, profit after tax increased to 17.71 crore this quarter from 14.16 crore in Q4 FY25. This represents a 25.07% year-on-year growth impact. Coming to the FY26 year performance, revenue from operations increased to 492.48 CR in FY26 from 373.68 CR in the previous financial year. This represents a robust growth of 31.79%. EBITDA for FY26 increased to 98.88 crores from 67.44 crores the previous financial year, reflecting the healthy growth of 46.6% year-on-year. Our EBITDA margin for the year stood at 20.08% compared to 18.05% in FY25. Looking at the bottom line, profit after tax increased to 65.05 crores this year from 49.10 crores in FY25. This represents a 32.48% year-on-year growth in fact. Let me now hand it over to our Joint Managing Director, Mr. Apoor Vagarwal, for ongoing strategic initiative and progresses during the quarter.

Thank you, Shalu, and good evening, everyone. Thank you for joining us. Financial year 2026 has been a transformational year for Sirka. Despite a subdued industry environment, we outperformed the broader paint market, a result of our differential portfolio, premium positioning, and deeper market penetration. Quarter 4 delivered resilient growth supported by acrylic, waterborne, and advanced coating systems, wider distribution, and stronger architect and institutional engagement. Our acrylic coating system saw strong traction. It is the fastest growing premium wood coating category preferred for superior aesthetics, non-yellowing durability, and low VOC formulations. We expanded our luxury and super premium portfolio across circa. Oikos, Unico, and Wembley Valentino, enabling participation from mass market to luxury decorative finishes. The new Wembley manufacturing facility is now fully operational, consolidating multiple production lines into one integrated setup, improving efficiency, quality consistency, and cost economics. The Wembley acquisition further strengthens our position in mass and mid-premium wood coatings with strong cross-distributional synergies between Circa's premium network and Wembley's North India footprint. Formula transfers for acrylic and polyester system are complete. Commercial trials are underway with production expected to commence in the quarter one of FY27. The UV technology transfer is also on track for quarter one of this financial year, deepening localization and supporting long-term margins. On brand building side, we deepened our engagement through partnerships with Architectural Digest and L-Decor magazines and exclusive architect programs at premium destination. Distribution continued to expand across Tier 2 and Tier 3 cities, with the upgraded Sirka Parivar Pro platform driving stronger channel royalty. Our key priorities for FY27 is scaling Wembley across India using Sirka's nationwide distribution, completing manufacturing-led localization to build efficiency and margin. Continuing to expand the premium and luxury portfolio, deepening tier 2 and tier 3 distribution through new depots, dealer appointments, and circus studios, growing our OEM and institutional business as organized furniture industry scales rapidly. And initiating exports under the brand Wembley Valentino, beginning the polyurethane coatings in the coming quarters. Our vision is clear. To build India's most aspirational coating platform, anchor in stronger manufacturing, a multi-brand portfolio spanning mass to luxury products. Expanding Pan-India distribution and deep engagement with interior designer, architects, OEM, and institutions, Sirka is well positioned for sustainable and profitable growth in the near future. And now, I would like to hand over the call to the moderator for question and answer session. Thank you, everyone.

Thank you to the management for the insightful introduction about the company. We will now move on to the Q&A sessions. Participants who wish to ask a question are kindly requested to raise their hand. To ensure we accommodate as many queries as possible, we request each participant to limit themselves to three questions at a time before rejoining the queue if needed.

The question is from Mr. Fennel.

Oh, hello. Hi, Mr. Fennel.

Yeah, I hope I am audible. So, yeah, congratulations for a good set of numbers. So, Aparavaji, I just want to know if you can share the segment-wise revenue mix, like the Sirka imported from Italy, Sirka made in India, Welcome, then Bambilino, and then Oiko. The cars are well-painted. So if you can share some more details on segment-wise, then that would be helpful.

Yeah. So, you know, despite being the tough years, Sirka has registered organic as well as inorganic growth. So the revenues combined from Welcome and Wembley were approximately 120.5 crores, out of which almost 46.5 was coming from Welcome and 74 crore was coming from Wembley. And, you know, out of 372 crores coming from our core business of Sirka Wood Coatings, approximately 124 was coming from the products which were imported from Italy and approximately 252 odd crores was coming from the products manufactured in India.

Okay, so this is the year-wise number you are saying, right?

Yeah, on a yearly basis, I am telling. Yes.

Okay, good.

So, 492 crores, if I combine into two categories, course circa was approximately 372 crores, and Wembley & Welcome was approximately 120.8 crores.

Okay, not yet. I just want to know, what's your view on the margins, considering the current geopolitical environment, like the Middle East crisis, conflict and all. So, what is the management view on the margins for a coming quarter or F527?

See, so we are, you know, experiencing a short term margin pressure because the raw material situation, as you rightly said, because of the global situation and, you know, crude oil, because most of the products that we use are crude link are on higher side and, you know, highly volatile. So the graph is like this. But the good thing is that we have taken a couple of price increase following the industry. And these couple of price increase were taken in two phases. And post implementation of these couple of price increase, we will be in a position to maintain the gross margins that... Company was maintaining, you know, throughout the year. So there might be a period of 10-15 days where the company has experienced pressure on the margin side, which is a period where, you know, we were not able to pass on the increase considering the situation to be highly volatile. But as I said, that the industry and all the players in the industry have taken the price increase. So as Sirka Payne, so the increase that we are incurring in the cost of production due to various reasons, which are the logistics, the packaging, the raw material, we are able to pass it on to the market in some or other way. So, you know, we don't see any long term contractions on the margin side. Beside this, you know, to go aggressive, as I told you that company is going to now manufacture the balance products that we were importing last year. So we will have some margin benefits from that side by producing those products in India, which will try to, you know, help us to go aggressive as well as maintain the margins in the category that we have been registering for last couple of years.

Okay, and last question on this export market, what we have highlighted in the presentation, the Sri Lanka, Nepal and Bangladesh. So, we already started this export or we are planning to start?

So, you know, in the last year as well, and, you know, for the future also, Nepal is one country where company has already been exporting. And this year, we have, you know, we have targets of increasing sale in Nepal. Sri Lanka, we are sent, we last year, we only sold a couple of consignment to a single customer. But now we are trying to find full-time distributors in Sri Lanka. But for the rest of the countries, including Middle East and certain other parts of the world, companies starting to export in brand Valentino. Brand Wembley. This is going to start in this year for which company has identified the distributors, the parties where we want to sell. Unfortunately, because of the current situation, the shipment cost and, you know, finding the vessel for the volatile, highly, highly flammable material is a little difficult. But yes, we are expecting as the situation normalized, our exports to Middle East, including Dubai, should start in this year.

Got it, got it. Thank you, thank you, and all the best for coming to us.

Next question is from Mr. Heman Soong.

Hello.

Hi, Mr. Heman.

Hi, sir. I just wanted to ask you one thing, sir. What will be the revenue growth guidance for the next year and any color in the margins for the next year?

Yeah, so, you know, considering the current situation and, you know, considering companies' expansion into product lines and also, you know, deeper penetration into newer cities, including South and West, we are looking at a growth of almost 25 to 30% based on, you know, CAGR growth.

And any color on the margin, sir?

The margins should, the EBITDA margin should remain in the category of say 19 to 21%. So as previously mentioned, you know, the volatility in the raw material prices has given us some temporary margin pressure, but with the couple of price increase that will come back to track. So, you know, the EBITDA margin should stay, you know, in the range of 19 to 21%.

So, sir, EBITDA margins in the range of 19% to 21% and revenue growth in the range of 25% to 30%, right? So, sir, the 1000 crores of revenue, that vision we had, that seems achievable by FY29, right?

Yes, three years from now. Three years from now. Okay, sir. Thanks a lot. Thank you.

Next question is from Mr. Kunal Tokas.

Hello, am I clear?

Yeah, Kunal ji, I can hear you.

Thank you, Mr. Karwan. My first question is, you talked about starting to export Wembley Valentine. Yeah. I also recall you had mentioned sometime last year that we might do contract manufacturing for specifically for regions like Russia, but that is all for some reason. So is there any progress on that?

So, you know, the final discussion that we have with Circa Italy, which happened in December 2025, where we also signed and completed the transfer of agreements of the balanced acrylic products to be produced in India. During that time, internally with the discussion of the management of Circa Italy was decided that, you know, it will be beneficial for Circa Spa and Circa India to start exports in the Middle East against the prevalent economical brands coming in from Middle East and Turkey. And that is why we decided to target these markets with a newer Wembley Valentino brand with economical range of polyurethane products. So, these are going to target the customers where, you know, because of the prices, the polyurethin ranges are not able to be sold. So, this sale will be done under the Wembley Valentino brand now.

Okay, there is still possibilities of going in with the Sirka brand as well, sometimes.

Yes. So, you know, Circa Spa is already exporting, you know, to certain nations. So if we talk about Sri Lanka, Nepal, Bangladesh, we are going to continue in the brand Circa. But other than that, we are Circa Spa is selling some higher quality of products like acrylic, waterborne, which still are viable to sell from Italy to the other part of nations. We don't want to create the confusion in the market, certain products coming from different origin and certain from different origin. So in order to cater that, we will be doing it in Wembley Valentino brand, which will gain the acceptance because in any case, the brand, newer brands from Turkey and Middle East are gaining traction. So yes. Yes.

Okay. Okay. And second, what are, what, what is the current utilization of our capacities at different places?

So, you know, for our core facility, which is the, you know, the circa facility where we initially had 16,000 tons in the beginning of year. But this year, we have increased the capacity by 1750 tons per annum. So the total capacity today, almost stands at 17,750, out of which we have this year, we have utilized almost 12,000 plus 12,000 tons. So, we are expecting that by the end of this year, the capacities will be, you know, utilized fully in single shift of the unit one, which is the circa, core circa unit. And beside that, if we talk about the capacities of the Wembley, Welcome, Valentino, and the newer products, we have installed a newer capacity, you know, where we have combined the four units of old Wembley distributors into one. There we have installed almost three times the capacity that Wembley had earlier. So here we are sorted to, you know, reach to a turnover of about 250 to 300 crores with the right product mixed of nitrocellulose and polyurethane. So in the journey of 1000 crores, we are more or less sorted with the Sirka and the Wembley capacities.

The question is about competition. Are you seeing increasing competition from the larger place, like Pirlau racing paints, or are they not making a move on this premium coating segment right now?

Yes. So, you know, as we always speak about, Sirka has been positioned in India as a premium category wood coating player. So when it comes to the premium product category, which is the polyurethane and the acrylic and the water-porn coatings, we still prefer to move through designer specification. And that is why a company's major marketing budget goes to the interior design architect fraternity, where we are becoming their preferred partner when it comes to the recommendation of the wood coating. So in the premium category, I would say that, you know, we still have lesser challenge in terms of competition with the bigger players for the mass category. Yes, but we are trying to manage it with the, you know, better margin offering to the retailer and also one retailer in one market, which will give him exclusivity and, you know, motivation and incentives to promote Sirka products.

Okay, sir, understood. Thank you for answering my questions and have a good day.

Thank you. Next question is from Ms. Reisha Mehta. Thank you. I hope I'm audible.

Yes, Resha, you are audible.

Yeah, thank you. So I am fairly new to the company. So just to understand the brand architecture, the Sirka brand is premium and Wembley and welcome, which I believe are the two acquired brands that operate in the mask segment. Is this understanding right?

Absolutely right, Resha.

And, you know, so I think, you know, before we used to import a lot of circa products from Italy, which has reduced over a period of time. So can you just talk about this journey and are we like, you know, indigenizing production here in India and what that does to our margins and also the, you know, raw material volatility part because of reducing the imports from Italy.

Yeah. So Resha, yes, as you rightly said, we started as a pure trading company and till FY24, 100% of our revenues coming was from import and trading, no manufacturing. So in FY25, we started manufacturing and started with almost 11 products, which contributed to about 50% of the revenues, which were the polyurethane technology. And in December 2025, we signed the agreement and started the know-how transfer of the balance acrylic and, you know, other products. And today we can say that, you know, 95% of the products that we used to import from Italy will now be produced in India. So we have moved from a trading to a manufacturing company. And this has been done with, again, you know, with India becoming a manufacturing hub. And, you know, most of the raw materials, most of the global companies have now strong presence in India. So the cost of the production and the raw material availability was much better. So it was more viable to produce in India, which has increased our gross margins a lot. But following this, the competition has also followed the same activity and most of our immediate competitors are also producing in India in lieu to which we have transferred in last couple of years the price benefit also to the market. So, for example, if we save, say, 20% on my cost, we have transferred almost 12% to 15% to the market, making product more affordable. And that is why our quantity-wise growth in polyurethane has been much more than the value-wise because we have done revision of price and reduced the selling price by 12-15% after becoming cheaper. And then four to five percent, we have increased our marketing costs. That is why you don't see a jump in the EBITDA. But yes, our gross margins have increased, which are being passed on in the market by increasing the schemes and also increasing our marketing budgets towards design fraternity.

Understood. And, you know, I think Vembley brand when we had acquired was doing around 72 crores of revenues, if I'm not wrong. And this year, I think at the very start, you called out that it's done around 74 crores revenues in FY26. So does that imply that, you know, there has been no growth in the Vembley brand in the last one year? And if yes, then, you know, why and what are we doing to try and fix the growth part?

Yes. So Resha, there are a couple of reasons where we don't see a lot of growth in the Wembley brand since it was the first year. So first year, the transformation and the teething problem was a little more than what we expected. So when we acquired the brand, so the old distributors did extended and some more quantity sales before the acquisition was completed. So, you know, their 72-odd crore sale last year, they had almost 5-6 crore sale that they did additional before the transition. So, one strong billing to all their distributors. So, practically most of the April sale was done in March. Also, in the month of March, we faced a major shortage of a main product, raw material, which goes into NC called Cotton Nitrex, which actually made us, you know, lost revenue of about 4 to 5 crores, you know, in the month of March. So we almost lost orders of 4 to 5 crores in March from Wembley. Had it been done, we could have reached revenue of 80 crores. And, you know, considering Apple to Apple, we were expecting a 20% growth. But considering these two factors, we, you know, we were more or less flat. But as we go into the next financial year where the transformation and where the acquisition has completed, the one-year deadline and the terms and agreement with the old owners of the company has completed, we expect that this revenue will show real growth.

Okay, and can you just call out your RM basket? You know, your top four, five RMs and what is their percentage allocation at the company level?

Yeah, our RM majorly comprises of three parts, which is the resins, which are alkyd and, you know, polyester-based resins. Then is the solvents, which are the bi-parts of crude. So, solvents include solvents like toluene, like butylacetate, like PMA. And then the third part, which is the smallest part, is the additives, which comes from global suppliers like BYK, Dow, Bayer. So these three are the main category of the RM which we use, out of which 95% is solvent plus the resin and 5% is the additives.

Okay, and resins and solvents, both are essentially imported, right? Or do we buy it from local dealers?

No, both are essentially important and mostly we buy from the dealers and, you know, from the reputed companies. The resins that come are from global suppliers and are made on our recipe, which is the key product going into our formulation and some key resins we manufacture in-house as well.

Right. And, you know, so since we, what would be our export revenue salience? Would it be very small, negligible?

Negligible. If we talk about absolute numbers, last year was about 9 crores, majorly from Nepal and 1-2 customers from Sri Lanka. This year, under the brand Wembley Valentino, we expect to grow our exports from the first quarter itself. And...

So, you know, you did say that you have faced some challenges in, you know, your raw material for especially for Wembley, right? So, are we seeing that raw material shortage or because of supply chain disruption right now? And because of that, do you, you know, foresee that it could hamper the revenue growth?

See, mostly we talk about circa and, you know, solvent side, we are not facing any significant delays or shortages of the raw material. The only problem is the high volatility in the prices. But when it comes to the nitrocellulose coatings, which uses a very important raw material called cotton, which is NC cotton, which comes from a global supplier called nitrex. There we are still facing pressures from the supply because it is a product which also go in defense and the defense demand has been increased and some part of nitrous has been diverted to defense and there are some problems also with the maintenance of certain cotton suppliers. So, this is expected to be, you know, streamlined by beginning June when the other unit, new unit of nitrex gets operational. So, currently, only with this raw material, we are facing shortages, which, you know, where we are not able to supply the nitrocellulose products completely. But we are expecting that within June, it will streamline and, you know, we will be back on track.

So, basically, only the Wembley brand gets impacted, right? Because of the nitro cylinders.

Yes, because NC is under Wembley only. If we talk about the polyurethane, acrylic, and other ranges of coatings, the raw material price volatility is there, but there is no major shortage or disruption in the raw material.

And, you know, with the agreement that we recently, you know, or the discussions that we had recently with our Italian partner, so with that, does that open up any fresh opportunities, be it, you know, for contract manufacturing or for exports or, you know, maybe for something else?

Yes. So, you know, as per our latest agreements, we have signed to produce the balanced products, which were earlier imported, considering, you know, the need of the market. And with this, we have already discussed the export opportunities. And after the mutual discussion with Circa Italy and their management, Mr. Liu Ji Durante, we decided to, you know, start the export in full swing under the brand Wembley Valentino. And see the results and see the market and then maybe think about contract manufacturing at the later stage because currently with the key product category, Circa Spa is still, you know, comfortable and competitive to export to other nations. So maybe in the coming quarters or later in the year, we will be discussing that opportunity. But for now, what we are going to focus is on the exports to the other nations under the brand Valentino by Wembley.

Understood. And, you know, if you can talk about the distribution expansion, which you said is going to be one of the drivers of growth, right? So, currently, we would be strong in north, I presume. So, how much percentage of our revenues comes from, say, north, west, east, south?

You know, currently, majority of our revenues, even after acquisition of Wembley and Welcome, which were also not centric, comes from the northern part of India, where we include states like Delhi, NCR, Punjab, Haryana, UP, UK, Rajasthan, and MP. So 80% of the revenues are coming from these territories and 20% is coming from the West and the South, where we have now started to expand. And, you know, out of 20 depots that we have, Pan India, five depots recently have been opened in last year, which are in Bangalore or majorly in the South and the West, from Pune to Surat to Ahmedabad to, you know, Mumbai, a new branch coming in the center of Mumbai. So the core focus of the company remains to grow the revenues in the West and the South this year.

So, you know, with this growth focus in West and South, and considering there is, of course, competition as well, do you see that as we expand, we try to expand more to, you know, markets outside of the North, we may have to give extended credit periods or trade discounts or so on and so forth to, you know, our channel partners, which may in turn, you know, affect our margins or stretch our working capital?

Uh, see, no. What I think is that, you know, Sirka is a brand which is not new to West or South market. Uh, it's a brand which is very much accepted by the designer and the architects. But unfortunately, we are a little late to, you know, enter strongly and fully into the South and the West. Uh, company is recognized as one of the preferred partners for furniture manufacturers in those regions. So people like Godrej, people like Narsi, people like Spacefoot, which are in Nagpur, Nasik, and Pune are using our products since many years. So, you know, we, Sirka is a preferred or it is a established name in the market where, you know, even the retail market knows that it is a brand which is very, very popular in the north. But now, with the right team, which was set in last year, the revenue momentum has already begun. And, you know, it follows the similar payment lines, which are, you know, which are in line with the competition or which are in line with what we are following in the north. So we don't see any extended credit terms, but also, but also, in fact, better credit terms, because if we speak when we go from north to, you know, south and west, the credit terms in the retail in south and west are a little better than what it is in north.

Right. And one last question, if I may. Right. So what are the price heights that we have taken? You did call out we've taken two price heights, but just if you could quantify that.

Yeah, so at the Circa level, we have taken a price increase of 5%, which was implemented from first week of April, and another price increase of again a 5%, which has been implemented from today. So two price increases combining to almost 10% on the whole range of Circa products. And on the Wembley and the Wellcome side, the price increase has been approximately Rs.35 per litre.

And this is enough to offset the RM price inflation so far?

So far, yes.

All right. Okay, thanks. Thanks so much, Apurva, for answering all my questions. I'll join back with you.

Thank you.

Next question is from Mr. Mahesh Atal.

Congratulations on good set of numbers, Apoorva. Am I audible?

Yeah, thank you, Mahesh.

Yeah, so I am fairly new and I was just looking at your results and see the kind of growth that you have done in FY26. What optimism you take along with you with the last financial year that gives you a strength or maybe a kind of... Say, optimism at company level that you will be able to give same kind of results in the next, maybe we can talk about the next financial year or maybe in a couple of years down the line that you can just give some guidance on that.

Yeah, yeah, Mahesh. You know, so there are three major points that actually fuel us and that actually make us very confident and optimistic about registering, you know, the growth that we have been doing for last many years. And, you know, the first thing is that, you know, the demand for the polyurethane and the product shift from certain product category to polyurethane technology is happening very fast in the market, which will, you know, Sirka being as an established player in the polyurethane category will give us a lot more opportunity. And we can say in simple words that the market size of polyurethane is going to rise in the coming year, which make us very confident that, you know, we will be able to grow in our polyurethane category. The second good reason is that Indian furniture industry in India is almost ready to, you know, scale to next level after the BIS implementation, which happened a couple of months ago. We are expecting the local production of furniture in India to grow very aggressively for next three to five years. So this year, we are seeing an upside in the manufacturing of local furniture and, you know, less of imports, which will allow us to sell more coatings to the furniture manufacturer, which is the core business of Sirka. The third, again, very important, as also mentioned earlier, that Sirka is expanding into newer territories with a core focus in West and South, an experienced team coming in and joining us for last six months have already started to show results. So the real number expansion will be shown in this year. And with the Wembley welcome integration into Circa, we are seeing, you know, to use the positive sides and energies of both the brand to increase the sale of both the brands. So all three points that the addressable market for Circa India is increasing, the furniture industry is set to rise because of the various reasons that I mentioned. And then third, the distribution network and Wembley Welcome integration will give us more powers to increase the sales, fuel our strategy and thought of resisting the growth that we did this year.

So you will be maintaining the same growth numbers that you have delivered this financial year? Are you confident on that?

Yeah, so we are quite confident. And that is why in the beginning, I mentioned that, you know, we expect a minimum considering the market situation and being, you know, being a little on the restricted side, we still see that 25 to 30% CAGR growth is what we expect as minimum.

Okay, so I just want to understand the let's I just want to go to the basics. I mean, yeah, to understand your business. So let's say I am getting furniture done at my office or maybe at my residential space. So why would I why would I require only circa I mean, why would the person who's actually helping me do it? Maybe the interior guy, or maybe who's the one who recommends your product? Basically, what is your selling point? I mean, why would someone come to buy Sirka as a brand? And where exactly this polyurethane thing you say, right? What was prior to polyurethane is what I want to understand.

Okay, so I will answer your second question first. Before polyurethane, people were mainly using melamine. Melamine is a two-component product, but only with 10% hardener and very easy to apply. So for the contractor, it was very easy. But if you talk about the VOC content and if you talk about the final finish, it is, you know, nowhere near to polyurethane, which is still a very less VOC and Hi, on quality product. So. Coming back to your second question, in our trade, there are mainly three influencers when we talk about retail business. One is architect and designer, which we called as a doctor of our trade. Second is the contractor and the painter, which actually goes to the dealer and buy our product. Third is the dealer, which is the point of sale, which are the multi-brand shop, which is selling Asian Painsburge and also keeping Circa as a product. So these are the three main influencers and you know, Sirka has been originated and Sirka has been positioned as a premium wood coating player in the market. And that is because of the design fraternity. Sirka has given India best of the products at the time where you know, no competition existed. And that is why we have maintained a pure made in Italy identity. And that is why we are the preferred choice of designer. So, we have the category of the products which are being specified by the designer like a doctor. And these specifications goes into their drawings and goes into their project. And when a contractor is hired at the site who has to polish the furniture which is made on site, that contractor then goes to the market to the retailer to buy the product. So this is the whole cycle. And that is why our influencer program with designers is very strong. And today we are proud that we are one of the top partners when it comes to wood coatings with architects, because we have developed that relation with the design fraternity in last 20 years by recommending our product. And that is why we say that, you know, 100% of our sale, which we do is secondary. Then we also run a very strong influencer program with contractor on Sirka Parivar app and dealer act as our logistic partner who keeps our product and sell it to the as per demand.

Apex number for FY27. Huh? Kapex, Kapex. Any Kapex outline for FY27?

You know, for FY27, we are not actually expecting very big Kapex. We are only expecting a 5 to 6 odd crore Kapex, which we will do to enhance our production of the acrylic products, which we have just completed the know-how. Most of the Kapex has been completed this year, which were mainly towards the Wembley welcome site to consolidate three, four different facilities into one for cost economies and also to increase the capacity for next three years.

What is the royalty number that the parent company gets from the sale?

The parent company gets 0.75% of our total reported revenue.

That is excluding the Wembley brand, right? Wembley brand is something that we have acquired on our own.

On our own, but we are giving it on a total thing because in December 2025, we signed an agreement to also export the polyurethane products in Wembley Valentino brand and also launch in Indian market, which are made from and which are being done with the help of Circa Italy. So to avoid any confusion and everything, we calculated that number of 0.75%, but on the total reported revenue.

Okay, okay. And what's something so specialized about Vembley that gives you a confidence that this will be accepted very well in Indian markets and the global markets? Or what is the kind of size that you are looking at in the first year of operations? Any numbers that you have worked on?

You know, Wembley actually is a household brand when it comes to, you know, the products like sanding, sealer, and lacquer, which are nitro technologies, nitro based technologies. And, you know, it is a brand which is, which was present in India since 1962. So it is a kind of a legacy and they have been positioned very, very well in their product category. They sell the volumes which we did, which we do in polyurethane because the average realization of the product is very less. But in terms of the quantity, they are more or less similar size of what we sell in circa because the average realization is less. Surprisingly, you know, 70% of the revenue of Wembley comes from two products, which are their hero product and, you know, which they are selling for many years, which are called a sanding sealer liquor. So brand is very well positioned in terms of name. They have not scaled revenues because of their own personal reasons where the old promoters had own interest to invest. But that is where we saw a strategic upside. And you know, with the increasing demand and addressable size of polyurethane, we are all set to launch PU in Wembley Valentino brand. So we are seeing that altogether. We see from the base that we have done this year, almost a 40% increase in the revenues coming from Wembley and Valentino this year.

And the margins on that would be higher than our existing business margins or it would be on the same lines?

No, no. The margins on these products are less than the circa luxury product range.

How less? I mean, can you just quantify the margins that this business will have?

You know, this business has 10-12% less gross margins compared to 15% less gross margins compared to, you know, Sirka. These are the products which goes, you know, which goes into retail as a primary product and not as a secondary product. So selling circa requires a lot more manpower, a lot more schemes, a lot more effort in terms of marketing. But with the mass product like sanding sealer liquor under the Wembley brand and, you know, PU under the Valentino, which we intend to offer to the mass market need of polyurethane will require less manpower and more primary selling. So what we believe is that even if the gross margins are less in terms of Wembley and Sirka, but final EBITDA, if I make a separate balance sheet of Wembley, Welcome and Sirka, the final EBITDA would still come down more or less at the same level.

Okay, so basically what you're saying is that absolute numbers would be increasing, but the margins would be shrinking.

Yeah.

Okay, so you would be actually increasing your top line a lot because of adding this thing, right?

Exactly.

Okay, so should we take the bandwidth of what we have achieved in FY26, that could be the bandwidth that we see from here, or it might be slightly decrease on that?

See, you know, only considering the external factors, you know, the market sentiments and, you know, even if you see last couple of years and results from the building material space that, you know, none of the company actually has registered much, very good growth in year on year basis. Still, Sirka has outperformed because of the distribution network and everything, only because the market sentiments, the demand side never was opening up. And still, we are going through a rough patch or a stage where still, because of the current ongoing situation, the demands are not increasing to the expect that we do. If that happens in the coming quarter, of course, yes, we should be more or less in line in terms of our growth with the FY26.

And what is the price differential between the melamine thing and this polyurethane thing?

See, if we talk about per liter melamine today, after so much increase, about 230-240 rupees a liter, PU comes out at an average of 450-460. But, you know, there is a kick to it because the coverage of the product of polyurethane is much more than melamine. So per square feet cost, we see a 10% difference.

So basically polyurethane would be on the higher side?

Yeah, polyurethane is on the higher side, yes.

But then the quality, as you said, or maybe the... It's something that anyone can make from a naked eye, even a layman. Okay, all right. Okay. Thank you, Apoorva. That's all from my side and all the best. Thank you, Mahesh.

Next question is from Ms. Resha.

Yeah, thank you. So, I would presume you would have an exclusive right to sell the Sirka branded products in India, right?

Yes, Resha. We have a brand agreement with them, which is currently till 2041.

Understood. And acrylic products, are they a new product line and hence a new revenue stream for us? And would this also be under the Sirka brand?

Yeah, so acrylic is under the Circa brand. And these were the products which still in the market has been sold as a made in Italy product. And you know, after the technical know how agreement with Circa Italy in December 2025, we are almost completing the trial stage and the made in India product will be rolled out in the quarter one of current financial year. Acrylic is not a very new product. It is fairly old technology in Italy. But in India, we launched it three years ago, where the revenue for the first year was negligible. But in last couple of years, revenue has shown a Great spike after polyurethane becoming a commodity, acrylic is taking over the arctic segment.

Okay, so the application would be the same for acrylic products, just like the PU?

Yeah, the method of application is exactly the same. Like we apply PU, we apply acrylic. The main difference is acrylic is a higher technology product. So the VOC content is 50% less compared to polyurethane. Secondly, it is a product which actually enhances the aesthetic value of the Veneer or the wood that you apply acrylic on. So it has non-yellowing properties. It is a property which gives you even a smoother finish. So it is something which is, you know, more premium than polyurethane.

Understood. All right. And your 1000 crore revenue vision basically also captures the opportunity that arises from acrylic products, right?

Exactly. Yes, ma'am.

All right.

That's it. Thank you. Next question is from Mr. Tanmay Mehta. Hello.

Yeah. Hi. Yes, you are audible.

Yeah. Hi, sir. Hello. Like, I want to ask, what is the timeline for exports to become a meaningful contributor, like say for 5% or more to overall revenues?

See, we are expecting the exports under Wembley and Valentino to start within the first quarter. We already have certain orders, but because of the current ongoing situation, we are still facing some logistic issues. So, as you know, as we go forward this year, I think we will, the export will become, you know, a part of contributed in the revenue, if not 5%, we are expecting should be near 3-4%.

Okay. And one more question I would like to ask, like, which geographies beyond North India are you prioritizing for Wembley's distribution?

So Wembley, Pan India, we are now going to expand Wembley and along with Wembley, the Valentino and Welcome brand into East by hiring a distributor in Kolkata, into West and South by hiring distributors in all the major cities of South and West.

Okay. Thank you, sir. Lovely voice.

Thank you. We will be taking next question from Mr. Arnav Khan. Hello, sir.

Thank you for the opportunity. I have just one question on the working capital of the company. If I compare our working capital with our peers, like Asian Paints, it's almost twice as high. Can you give some explanation? Why is this the case?

Yeah, so Arnav, in last couple of years, because of our inorganic growth coming from the acquisition of the Wellcome and Wembley brand has actually increased a little on the working capital side because of the transition phase. Because, you know, during the transition, we have to acquire all the closing stocks and also ensure the newer production and maintain better inventories in terms, you know, to ensure that the transition is smooth. Besides that, again, the receivables from Wembley Welcome has been a little on the slower side because of the initial transition phase and, you know, the payments of the old owners has to come first before our payments coming in. And, you know, by the end of this year, it has completed. So in the coming quarter, we are expecting both the inventory and also the debtors to come down and which has been up from last two years, majorly following this acquisition and also because of the global disturbance, which pushed us to, you know, to immediately signed agreement of producing acrylic also in India. So acrylic sales were growing and almost contributed to almost 120 odd crores this year. And the, and there, the, the inventories of these products had to be kept for six months because of the. Logistic issues, the production time in Italy was increased, the logistics time was increased. So we were keeping inventories of these products of almost six months so that we don't run out of the stock. But now by producing it in India and consuming the old inventories by maximum June end, we will have a lot of relief from the import inventories which we were holding for a period of six months. And, you know, we are expecting almost 15-20 crores inventory going down from here. And also from data side, we are expecting huge numbers to go down as the transition stage from Wembley Welcome has completed now. And, you know, the newer payment, all the payments to Sirka will start coming from now. So this will help us to improve the working capital in the coming days.

Understood, sir.

Thank you. That's all from my side. Okay, we will be taking last question from Mr. Mahesh Attal. Hello, Mahesh sir, are you there? Okay, as there are no further questions, I would like the management to give the closing remarks.

All right. Thank you, Team Film Portal. And thank you, everyone, for joining. You know, at Sirka, as I mentioned earlier, our vision remains very clear to build India's most aspirational and technologically advanced sporting platform across premium, luxury, and mass market categories. With stronger manufacturing capabilities, a diverse brand portfolio, expanding distribution reach, and deep engagement with the designer and architects, we believe the company is well positioned for the next phase of sustainable and profit growth. Thank you.

Thank you. On behalf of Fun Portal, I would like to express our gratitude to the management team of Sirka Pains India Limited for taking the time to join us and provide such detailed responses to the questions. We also appreciate all the participants for their engagement. If any questions remain unanswered, please feel free to reach out to us at the email IDs given in the chat box. You may disconnect now.