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Key Conference Call Highlights

Market Position & Industry Standing

* SIRCA continues to strengthen its position as one of India’s top three premium wood coating brands and remains a market leader in North India

* Increasing consumer preference for polyurethane (PU) coatings over NC and melamine products remains a strong structural tailwind for the company

* OEM and institutional business continues to remain a key long-term growth driver, supported by increasing formalisation in India’s furniture and modular solutions industry

* Additional tailwinds include BIS implementation and rising organised manufacturing across furniture, modular kitchens and wardrobes

Distribution & Market Expansion

* The company continue to expand its Tier-2 and Tier-3 presence in FY26 through addition to its network of branches, depots and dealers, alongside stronger contractor engagement via the upgraded Sirca Parivaar Pro-loyalty platform

* Around 80% of current revenues are derived from North India, while the management remains focussed on increasing contribution from South and West India in the medium term

* SIRCA maintained a strong visibility across industry exhibitions, furniture expos, OEM platforms and design-focussed events, strengthening engagement with institutional buyers, furniture manufacturers, contractors and channel partners

Capacity & Manufacturing

* SIRCA’s manufacturing capacity capacity increased, from 16,000 MT in FY25 to 17,750 MT by the end of FY26, with utilisation exceeding 12,000 MT in FY26. Capacity for other product categories was also expanded to nearly 3x existing levels

* The newly-commissioned dedicated Wembley manufacturing facility is now fully operational, integrating multiple production lines into a single setup and improving operational efficiency, quality consistency, supply-chain responsiveness and overall cost-optimisation

* FY27E capex is anticipated to remain minimal at around INR 50–60 Mn, as the majority of expansion investments were completed in FY26

* Royalty payable to the parent company remains at 0.75% of the total revenue

Growth Strategy & Business Outlook

* The management has guided for FY27E revenue growth of 25–30%, with EBITDA margin projected in the range of 19–21%

* Despite volatility in crude-linked raw material, currency movements and geopolitical disruption, the company maintained profitability through calibrated price increases, sourcing optimisation, product mix improvement and tighter operational controls

* To offset the impact of higher petrochemical prices linked to the West Asia conflict, SIRCA implemented two price hikes for its products — around 5% in the first week of April last month and another ~5% effective today (15 May, 2026). For other brands, prices were increased by approximately INR 35.

* The company is evaluating and initiating export opportunities under the Wembley Valentino brand, particularly in polyurethane-based coatings

* Export operations are expected to commence gradually in the next few quarters, although near-term execution is facing logistical challenges due to ongoing geopolitical disruption. In the medium term, the management targets a contribution of around 3–4% from exports to the total revenue.

Wembley Acquisition & Synergies

* The Wembley acquisition has strengthened SIRCA’s position in the mass and mid-premium wood coatings segment across enamels, NC, melamine, PU and thinners

* The management highlighted meaningful cross-distribution synergies between SIRCA’s premium network and Wembley’s strong North India presence

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