1. At a Glance
Sirca Paints India Ltd — the company that made Italian wood coatings as aspirational as a Gucci handbag — has dropped a stylish quarterly performance yet again. For Q2FY26 (Sep 2025), Sirca brushed up ₹131 crore in revenue, up 24% YoY, and polished ₹18.1 crore in PAT, a neat 36% jump. EBITDA came in at ₹27.4 crore, which means its operating margin was a sleek 21%. With amarket cap of ₹2,947 crore, astock price of ₹519, and aP/E ratio of 50.8, the market seems to believe this paint smells of money, not turpentine.
The company’s EBITDA margin has improved from the previous 20% to 21%, showing that even with Wembley’s integration (its latest acquisition), the management didn’t let cost buckets spill over. Thereturn on capital employed (ROCE)stands tall at20%, whileROEsits at a respectable14.9%— the kind of balance that makes even Asian Paints take a cautious peek.
Over the last 6 months, the stock has doubled (+96.8%), proving once again that Indians will pay a premium for anything Italian — even if it’s just a paint bucket.
2. Introduction
Every investor dreams of finding a company that combines luxury, growth, and a hint of imported glamour. Sirca Paints fits that shade perfectly. Born as a distributor for Italian coatings, it has evolved into one of India’s top three premium wood coating brands — painting not just furniture but also investor portfolios in glossy hues.
This isn’t your typical “Desi Paints” story. Sirca didn’t start with walls — it started with wood. While Asian Paints was busy painting your bedroom, Sirca was busy coating your furniture with a finish so rich you could almost see your reflection in it. From there, the company moved into decorative paints, Oikos designer walls, and recently, a legacy brand acquisition —Wembley Paints— to strengthen its mass and mid-segment presence.
But don’t let the Italian sheen fool you; this is a Gurugram-based hustle. A business that runs on dealership networks, product innovation, and now, manufacturing muscle. Withfive facilities, over760 employees, and acapacity of 30,000 tonnes, Sirca is all set to take its luxury niche mainstream.
And yes, while itsP/E of 50.8xmight make your eyes water more than turpentine fumes, the growth trajectory — 28% sales growth and 25% profit growth (TTM) — makes it hard to look away.
3. Business Model – WTF Do They Even Do?
Sirca Paints doesn’t just “sell paint.” It sells a lifestyle, an aesthetic, and for some reason, the illusion that you’re in Florence even when you’re in Faridabad. The company operates throughfour main brands:
- Sirca– The flagship line offering high-end Italian wood coatings and luxury wall finishes. Think of it as the “Louis Vuitton” of wood varnish.
- Unico– The budget cousin for the masses who want imported feels without imported bills.
- Oikos– Designer paints and decorative coatings for those who think texture walls are the new crypto.
- Welcome– A range of thinners and reducers — the unglamorous but profitable backbone of the operation.
InFY25, wood coatings contributed a whopping85%of revenue, decorative paints 7%, and the Welcome brand 8%. In short — they’re still a wood story with a wall subplot.
The company operates through4,000+ dealersacross India and is rapidly expanding itsSirca Studios, where consumers can experience finishes firsthand
(and occasionally be upsold to pricier products they didn’t plan to buy).
On the B2B side,900+ OEM clientsinclude big names likeGodrej, Jindal Stainless, Spacewood, and Pyramid, ensuring steady institutional demand.
So yes, they sell paint — but they package it like Prada.
4. Financials Overview
| Metric | Q2FY26 | Q2FY25 | Q1FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 131 | 105 | 114 | 24.8% | 14.9% |
| EBITDA (₹ Cr) | 27.4 | 19 | 23 | 44.2% | 19.1% |
| PAT (₹ Cr) | 18.1 | 13 | 14 | 39.2% | 29.3% |
| EPS (₹) | 3.19 | 2.42 | 2.59 | 31.8% | 23.2% |
Annualized EPS = 3.19 × 4 =₹12.76, implying aP/E of ~40.6xbased on CMP ₹519.
Commentary:The quarter was strong. Wembley integration didn’t bleed margins, and demand held up in the North. A 21% OPM in paint manufacturing isn’t a joke — that’s premium pricing power dipped in Italian accent.
5. Valuation Discussion – Fair Value Range (Educational Only)
Let’s check three ways to see if this paint is priced fairly — or if it’s just glossy on top.
(a)P/E Approach
TTM EPS = ₹10.4Industry P/E = 42.2Sirca P/E = 50.8
If we assume a fair P/E band of35x–45x,Fair Value = ₹364 – ₹468 per share.
(b)EV/EBITDA Approach
EV = ₹2,940 Cr, EBITDA (TTM) = ₹88.5 CrEV/EBITDA = 33.2x
Paint sector average ~30x.So fair EV range = 30 × 88.5 = ₹2,655 Cr → Fair Price Range = ₹410–₹460.
(c)DCF Quick Pass
Assume 25% growth for 3 years → 15% for 3 more → terminal growth 5%, WACC 11%.Fair range outcome: ₹400–₹475.
→ Educational Fair Value Range: ₹400–₹470 per share.
📜Disclaimer: This fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
Oh, a lot is simmering in this paint pot.
- Wembley Acquisition (Mar 2025):Sirca acquired the entire Wembley brand and its 3 manufacturing units for ₹81.5 crore. Wembley, a 60-year-old legacy name, strengthens Sirca’s presence in the decorative paints segment — basically, they just bought nostalgia with enamel on it.
- Sirca S.p.A. Tie-Up Extended (Nov 2025):The exclusive technology partnership
