SIRCA PAINTS INDIA LTD (NSE: SIRCA) Q4 2025 Earnings Call dated May. 27, 2025
Corporate Participants:
Unidentified Speaker
Shallu Arora — Chief Financial Officer
Apoorv Agarwal — Joint Managing Director
Analysts:
Unidentified Participant
Nilay Dalal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome TO Circa Paints Ltd. Q4FY25 Earnings Conference Call hosted by Dalal and Rocha. As a reminder, all five spin lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nile Brocha. Thank you. I’m sorry. I now hand the conference over to Mr. Nile Dalal. Thank you. And over to Mr. Dalal.
Unidentified Speaker
Thank you, Michelle. Good evening everyone. Thank you for joining us today to discuss Q4 and full year FY25 earnings of circa Paint India Lim hosted by Dalal Ambrocha. During the call, the management will be referring to the presentation and financial results which are available on the stock exchanges as well as the investor web page from the management team. We have with us Mrs. Sanjay Agarwal, Chairman and MD Mr. Apoorv Agarwal, Joint Managing Director. Ms. Shalu Arora, CFO and Mr. Hira Kumar, Company Secretary. Let me now hand it over to Ms. Shalu Arora to take you through the key financial highlights. Over to you, mam.
Shallu Arora — Chief Financial Officer
Thank you so much. Hi. Good evening everyone. I’m pleased to share with you the financial performance of Circa Films India Limited for the fourth quarter of FY24, 25 and financial year 2024 and 25. Revenue from operations increased to 101.1 crore in Q4 FY25 from 82 crore 0.63 crore in the same quarter last year. This represents a robust growth of 22.4% YoY. This strong performance was primarily driven by the better product mix and a strategic focus on high value product sales.
Moving on to our profitability metrics for the quarter, EBITDA for Q4FY25 increased to 18.97 crore from 16.25 crore in the same quarter last year reflecting a healthy growth of 16.8% year on year. Our EBITDA margin for the quarter stood at gain 0.77% compared to 19.66% in Q4FY24. This slight decline. Decline in margin was primarily due to heightened competition in the market which led us to introduce more schemes and discounts to support our sales growth. While this impacted margins, it was a strategic move to maintain our market share and drive top line expansion. Looking at the bottom line, profit after tax increased to 14.16 crore this quarter from 12.51 crore in Q4FY24. This represents a 13.1% year on year growth impact. On a full year basis, CIRCA recorded a top line of Rs. 374 crores reflecting the growth of 20%. YoY. EBITDA declined by 2% and PAT at rupees 49 crores was down by 4% on a YoY basis. Let me now hand it over to Mr. Apoor Bhagarwal, joint Managing Director for his comments and future outlook. Thank you.
Apoorv Agarwal — Joint Managing Director
Thank you Salu and a very warm welcome to everyone. I would like to start the call by highlighting the strategic acquisition of Wembley. In March 2025 we completed the acquisition of the iconic Wembley brand including all business operations from Wembley Paint and Chemicals and Indo Wembley Paint Private Limited. This acquisition adds a reputed range of products sanding, sealer, lacquer, enamels, NC Paint, melamine and more to our portfolio.
Wembley, established in 1961, is renowned for its high recall sanding, sealers and lacquers and brings with it a strong brand legacy and loyal customer base. With Wembley in the stable, we are optimizing operational mattresses and unlocking significant growth opportunities across India. Notwithstanding, our core competency remains premium Italian wood coatings under the CIRCA brand of Italy. Let me dwell on the future outlook. Despite near term headwinds, we remain confident in our medium to long term growth prospects.
The outlook for FY26 and beyond is optimistic, supported by favorable macroeconomic trends and strategic initiatives. Compared to last year, the current business environment is expected to be more stable. India’s economic growth trajectory remains strong relative to global peers. Initiatives such as income tax reductions are expected to increase disposable income and stimulate consumption. This acquisition of brand Wembley is enhancing our Pan India distribution. With focused dealer onboarding and channel expansion, we are entering the value segment of the market with a comprehensive product offering aimed at capturing additional market share and addressing the industrial demand. Further investments are being made for Wembley to streamline the production processes, expand the capacity and reduce the turnaround time. With the onboarding of One Digital, a specialist marketing agency in the architect and interior design space, we are deepening our engagement with design professionals and enhancing brand visibility through integrated marketing campaigns. Our advanced development of ultra premium Wallpin products in collaboration with Oikos Italy is near launch, opening opportunities in the luxury home decor space. We continue our aggressive push into emerging markets such as Madhya Pradesh, Chhattisgarh, Northeast and South India. Through localized marketing and dealer activations and by onboarding of senior workforce, we are securing new OEM partnerships in modular furniture and door manufacturing, strengthening our position in the B2B ecosystem. Additionally, lower crude prices and a positive economic outlook thanks to a normal monsoon forecast and supportive government policies. It would further boost demand in the coming quarters. Thanks. And now I would like to hand over the call to the moderator for the quick Q and A session. Thank you.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin with the question and answer session. Anyone who wishes to ask Questions may press star and one on the Touchstone 4. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. You may please press Star and one to ask questions. Participants who wishes to ask questions may please press Star and one on your touchtone phone. Please press star and one to ask questions. The first question is from the line of Shubhanu Bangal from Solo Investor. Please go ahead.
Unidentified Participant
Hi sir. Hello. Yes, hello.
Apoorv Agarwal
Yes.
Operator
Yes, sir. You’re audible. Please proceed.
Unidentified Participant
Going forward down percentage of revenue going forward
Apoorv Agarwal
See [Foreign Speech]. [Foreign Speech]
Unidentified Participant
Okay, thank you.
Apoorv Agarwal
Thank you.
Operator
Thank you. Participants, you may please press star and one to ask questions. The next question is from the line of Nile, Dalal. From Dalal and Roja. Please go ahead,
Unidentified Participant
Michelle. I’ll take the question later on. We have a. We have a queue.
Operator
Okay, thank you. The next question is from the line of Srikanth Kn an individual investor. Please go ahead. Yes, sir. Please proceed with your question.
Unidentified Participant
Could you talk about the competitive landscape today in the paints? Excuse me, sir. So your audio is low. Can you increase the volume little bit? Yes. Yeah, you’re able to hear me now? Hello?
Operator
Yes sir, Please check it now.
Unidentified Participant
Yeah, could you talk about the competitive landscape today in the paint industry especially? We have seen that many new competitors have come into this field in the last two to three years. So how has this changed and how is Circa Pence, you know, positioned within this IT competition?
Apoorv Agarwal
Yes, so last year, you know, with the entry of new players in the market, we have seen some heightened competition, no doubt. And that is by, as you see that we have highlighted in our call that, you know, the scheme payout during last couple of quarters has increased. But luckily for us, as Circa paint, you know, the new entrance main focus remains decorative though the immediate main players and the competitors to the new entrants are offering a combined, you know, scheme, including the decorative and the wood coating products to attract the customers.
But it seems that the competition going forward in the decorative segment is still expected to be, you know, quite competitive and it still is expected to remain on the higher side. But on the wood coating side where the focus of the new entrance is still limited, it should get, the scheme payout should get a little lighter. So going forward we expect that in our core offering of wood coating products, the margins should improve going forward.
Unidentified Participant
So just to follow up, like among the decorative and the wood coating, Right. What would be the revenue mix that you get?
Apoorv Agarwal
So currently, you know, 85% of our revenue is coming from our core polyurethane business, the wood coating business under the brand Sherta. And decorative along, you know, decorative contributes to only 5, no, 7% of our total sales, which also includes the Oikos sale, the premium texture paint products. The rest was contributed by the brand. Welcome. So, yeah, decorative is almost negligible percentage of our revenue.
Unidentified Participant
Yeah, that helps. And lastly, sir, like oil, right now we are in a good macro price, but it is subject to, you know, geopolitical tensions and volatility as well. To what extent, you know, the price of oil, you know, affects your margin positively and negatively? Like, is there any kind of hinting that circa does to avoid, you know, the negative part of it,
Apoorv Agarwal
You know. Sorry, so couple of. I missed couple of your words. So can you repeat the question?
Unidentified Participant
Yeah. To what extent the volatility in oil affects your margin? Like,
Apoorv Agarwal
Okay, yeah, you know, so crude oil is directly related to solvents and solvent contributes to almost 40% of our raw material. So there is a considerable effect of effect of crude, you know, but positively, and you know, currently we are seeing a downside in the crude oil prices, which is helping us to recover some margins in the short term. And going forward also, you know, we expect that, I mean, the trend according to the current situation, seems that this is not going to impact, you know, the margin strongly in the near future.
Unidentified Participant
Thank you very much.
Operator
Thank you. We’ll take the next question from the line of Hitesh Gangwani, an individual investor. Please go ahead.
Unidentified Participant
Good evening.
Apoorv Agarwal
Good evening.
Unidentified Participant
Yes, sir. My question is, sir, around three or five years down the line, where do you see your company achieving as like 200 Korea sales quarterly? What is your vision for the company five years down the line? I know there is a pressure from the premium.
Unidentified Participant
Premium wood coating market as various various other entities have become. But now you have acquired Wembley also and Circa Paint is also doing good. So where do you see five years down the line?
Apoorv Agarwal
See, going forward, the company, you know, expect a CAGR growth of about 25 to 30%. So you know, down the line five years we will be reporting revenues in four digits.
Unidentified Participant
Okay, so thank you. Thank you.
Operator
Thank you. Participants, please press star and one to ask questions. We’ll take the next question from the line of Prashant, an individual investor. Please go ahead.
Unidentified Participant
My question is already answered. Thank you.
Operator
Thank you. Sir, the next question is from the line of Prav from Sincere Syndication. Please go ahead.
Unidentified Participant
Good evening, sir. Am I audible?
Apoorv Agarwal
Yes,
Operator
There is a airy disturbance. I would request that you use your handset to ask questions. Yes, please proceed.
Unidentified Participant
Yeah. Sir, my question is on the welcome Brand side. So when we initially acquired welcome Brand, we said that the company was making sales of 50 crores with EBITDA margins of 14%. Can you give us the split for the current year on our revenue, how much welcome has contributed and what is the guidance on welcome side going forward? So how we are looking into take welcome Brand in terms of both revenue or in terms of margins.
Apoorv Agarwal
See welcome nine months sales stood at around 35 crores. And you know, if we were to analyze this comes to almost 47 crore which is more or less same as the last year. There has been some transitional delays of complete amalgamation with Circa’s operation which is now being fully resolved. And in the current year we expect a growth of about 20%. When we talk about the margin, the margins were more or less the same where we had an EBITDA of 15% in the sale of 35 crore. But going forward, as the crude prices have softened and the solvent has gone down, we are expecting the EBITDA in Welcome to get better this year.
Unidentified Participant
Initially when we did this acquisition, we saw this to be a doubler within a year in terms of revenue. So what changed in the due course that now we are guiding it to be a 20% growth in the upcoming years.
Apoorv Agarwal
So you know our recent acquisition which was of the brand Wembley, we have also launched a new thinner brand under the Vemlay brand called Wellcoat to counter and increase the sales of the total product reducer which was sold under the welcome brand. So we are expecting about 20 odd crore sales of thinners and reducers from the brand Wellcoat also. So actually we are splitting our sales into two brands, Wellcome and Wellcoat. If we combine the sales of both we will be doing a growth of about 50%.
Unidentified Participant
Okay. Okay sir, if my understanding is right, you are seeing the growth on top of 50 or on top of 35?
Apoorv Agarwal
On top of 50.
Unidentified Participant
Okay. 20% we can expect from the welcome brand and 20% from the new brand which we have offered.
Apoorv Agarwal
Well quote, yeah which will be selling the same reducer product because 35 crore was the sale of about eight and a half nine months because we started our operations from June.
Unidentified Participant
So if we see from our current base, so this translates to nearly doubling from the 35 crores level. So what would be the organic growth in our existing business which we are confident this year.
Apoorv Agarwal
So you know in our main circa business we are expecting a growth of about 18 to 20%. And together with the Wembley and the Wellcome sales which will be also added to the revenues this year we are expecting a combined growth of about 30, 32% this year.
Unidentified Participant
If I can add on what would be the sales percentage exposure towards Delhi as a market the whole year.
Apoorv Agarwal
So Delhi will be contributing, you know almost 40, 45% of our sales, Delhi and NCR.
Unidentified Participant
Out of this period did we have any periods which where construction was banned where we could not supply to daily market?
Apoorv Agarwal
Yes. So you know the months of Jan, the whole month of January was quite impacted in the Delhi NCR region because of the environmental problems and the graph 4 and 5. So that was a factor that our margins also were not able to recover to what we expected in the quarter four though there was slight recovery quarter on quarter but not up to our expectations.
Unidentified Participant
Okay sir, going forward, in terms of the sales mix, what would be the sales mix in terms of Delhi versus other regions and the new brands which we have, including welcome and the other one where their major exposure would be. Sir, in terms of location, region.
Apoorv Agarwal
Sorry, I skipped couple of your words initially. Can you repeat?
Unidentified Participant
Yes. So in terms of like what would be our location mix in terms of Delhi versus other market and in the new products that we have that we have right now on the welcome side and also the other recent acquisition on the side, would there be the location bias towards Delhi in the new products also or that that would be having different locations to show.
Apoorv Agarwal
Okay, so you know, in the short to medium term we are expecting 70% of our revenues to come from the northern part of India which is not only Delhi, NCR but also UP Haryana, Rajasthan, Punjab, jnk, Himachal and also Rajasthan which comes under our northern part. And then as mentioned during my remarks, we are also strongly entering the Madhya Pradesh. Chhattisgarh means the central India and the south southern part of India where we have taken, you know, some senior workforces also. So these states will are expected to grow in the medium to long term from now. And so we are expecting that, you know, 30% of our sales will come from the rest of India. So north India still remains, you know, high in terms of percentage revenue contribution.
Unidentified Participant
So in terms of exports, we had certain export opportunities other than neighboring countries. So like could you speak about our export opportunities going forward which we’re gonna the brand name the regions which we are going to take.
Apoorv Agarwal
So you know, actually we are no more looking to export out of India except Nepal and Sri Lanka due to unfavorable geopolitical situations and due to the fact that the Indian economic landscape has been more improving Quite significantly post GDP outlook for FY26 and you know, favorite favorable government fiscal policies which are directed towards increase in consumption. And we’ve also further visualized volume to pick up as agroeconomy of India is expected to grow faster due to normal rain forecast by so our focus remains more towards India and immediate neighboring countries like Nepal and Sri Lanka for now.
Unidentified Participant
Okay, sir. Okay. So this answers most of my questions. Thank you. Thank you for your time.
Operator
Thank you. A reminder to all the participants that you may please press star and one to ask questions. We’ll take the next question from the line of Nilay, Dalal from Dallal and Doja. Please go ahead.
Nilay Dalal
Hello. Yes, please proceed. Yeah, thanks for the opportunity. So just wanted to ask in. In the 20 25% kind of growth which we are expecting next year, what what is the kind of volume growth in that we would be looking at? Plus because if in the current year also we have taken some kind of a margin miss to maintain the market shares. So how do you see the outlook on volumes in specific and margins in the next year?
Apoorv Agarwal
See you know, considering Wembley and welcome brands on board and the product line are under. These brands are for masses and you know, the per liter realization is less. We are expecting the volume growth to be around 38 40% against a 25, 30% increase in the revenues for sure. This year you know the margins were, you know, a little on the downside due to increased competition and environmental factors and heightened, you know, competition, the schemes going up. But, but you know the. This year it looks more promising when it comes to the margins.
The reason being that you know the crude oil prices have softened so which are helping us to increase some gross margins. And also we are exploring, you know, to manufacture more of Italian range of products here in India. In India for which we are already in talks with our esteemed management of circa Italy which will help us to have better margins and you know, negate the effect of currency etc. So this year looks more promising in terms of the margin side as well.
Nilay Dalal
Okay. Okay. Thank you sir.
Operator
Thank you. Participants, you may please press star and one to ask questions. We’ll take the next question from the line of Shubhanu Bangal, a solo investor. Please go ahead.
Unidentified Participant
Hello sir.
Unidentified Participant
Thank you for opportunity again. Hello.
Apoorv Agarwal
Yes, yes, yes,
Operator
Please proceed.
Unidentified Participant
FY25. How much of the sales come from export sale mix?
Apoorv Agarwal
So currently the revenue contribution from exports is negligible. About a 2 crore sale was done in exports only from Nepal. Yes. And margin? The margins are. You know the gross margins were about 30% there.
Unidentified Participant
Okay, thank you.
Operator
Thank you ladies and gentlemen. As there are no further questions, I would now like to hand the conference over to the management for closing comments. Thank you. And over to you sir.
Apoorv Agarwal
So thank you all for joining today and for your continued trust and support. We remain confident in our strategy and committed to delivering long term value. We look forward to keeping you updated on our progress in the quarters ahead. Thank you.
Operator
Thank you members of the management. Ladies and gentlemen, on behalf of Dalol and Brocha, that concludes this conference, we thank you for joining us and you may now disconnect your lines. Thank you.