Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
SIRCA PAINTS INDIA LTD (NSE: SIRCA) Q4 2026 Earnings Call dated May. 15, 2026
Corporate Participants:
Shalu Arora — Chief Financial Officer
Apoor Bhagarwal — Joint Managing Director
Analysts:
Kunal Tokas — Analyst
Fanil — Analyst
Heman Soni — Analyst
Unidentified Participant
Rasha Mehta — Analyst
Mahesh Atal — Analyst
Tanmay Mehta — Analyst
Arnav Khan — Analyst
Presentation:
Shalu Arora — Chief Financial Officer
Thank you. Hi, Good evening everyone and thanks for joining for our quarterly results discussion. I’m pleased to share with you the financials performance of Circa Paints India Limited for the fourth quarter of FY25 26. On a standalone basis, revenue from operations increased to 134.29 crore in Q4 FY26 from 100.92 cr in the same quarter last year. This represents a robust growth of 33.07%. 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 Q4FY26 increased to 25.74 crores from 18.97 crore in the same quarter last year reflecting a healthy growth of 35.6% year on year. Our EBITDA margin for the quarter stood at 19.17% compared to 18.8% in Q4FY25. Looking at the bottom line, profit after tax increased to 17.71 crore this quarter from 14.16 crore in Q4FY25. This represents a 25.07% year on year growth. In fact, coming to the FY26 year performance, revenue from operations increased to 492.48 cr in FY26 from 373.68 crores in the previous financial year.
This represents a robust growth of 31.79%. The beta for FY26 increased to 98.88 crore from 67.44 crore 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 crore this year from 49.10 crore in FY25. This represents a 32.48% year on year growth in PAT. Let me now hand it over to our joint Managing Director Mr. Apoor Bhagarwal for ongoing strategic initiative in progresses during the quarter.
Apoor Bhagarwal — Joint Managing Director
Thank you Shalu and good evening everyone. Thank you for joining us. Financial year 2026 has been a transformational year for Circa. Despite a subdued industry environment, we outperformed the broader paint market, a result of our differential portfolio premium Positioning and deeper market penetration. Quarter four 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 Vembley 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 Eldecor magazines and exclusive architect programs at premium destination distribution continue to expand across tier 2 and tier 3 cities with the upgraded Circa Parivat Pro platform driving stronger channel royalty. Our key priorities for for FY27 is scaling Wembley across India using Circa’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 Circa 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 two luxury products, expanding Pan India distribution and deep engagement with interior designer architects, OEM and institutions. Circa 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.
Kunal Tokas — Analyst
Thank you to the management for the insightful introduction about the company. We will now move on to the Q and 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 participants to limit themselves to three questions at a time and before rejoining the queue if needed. The question is from Mr. Fanil.
Questions and Answers:
Fanil
Oh hello.
Apoor Bhagarwal
Hi Mr. Fenid.
Fanil
Yeah, I hope I am audible. So yeah, congratulations for good set of numbers. So apology. I just want to know if you can share the segment wise revenue revenue mix like this Circa imported from Italy, Circa made in India, welcome, then Bambilino and then Oiko because. And well paint. So if. If you can share some some more details on on segment wise then that would be helpful.
Apoor Bhagarwal
Yeah. So you know despite being the tough years, Circa 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 Wellcome and 74 was crore was coming from Wembley. And you know, out of 372 crores coming from our core business of Circa wood coatings, approximately 124 work was coming from the products which were imported from Italy. And approximately 252odd crore was coming from the products manufactured in India.
Fanil
Okay, so this is year wise number you are saying, right? Yeah,
Apoor Bhagarwal
On. On a year yearly basis. I’m. I’m telling. Yes. So 492 crores. If I combine into two category core circa was approximately 372 crores. And Wembley and Welcome was approximately 120.8 crore.
Fanil
Okay, not. 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, what is the management view on the margins for a coming quarter or FY27?
Apoor Bhagarwal
See so we are experiencing a short term margin pressure because the raw material situation as you rightly said because of the global situation and crude oil because most of the products that we use are crude linked are on higher side and highly volatile. So the graph is like this. But the good thing is that we have taken couple of price increase following the industry and you know these couple of price increase were taken in two phases and you know post implementation of these couple of price increase we will, you know, 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 Circa pain. 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 has been. 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, from, from the, 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.
Fanil
Okay, and. 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
Apoor Bhagarwal
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 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 under the 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 normalize our. Our exports to Middle east including Dubai should start you know, in this year.
Fanil
Got it, Got it. Thank you. Thank you and all the best for. Thank
Kunal Tokas
You. Next question is from Mr. Heman soni.
Apoor Bhagarwal
Hello. Hello. Hi, Mr. Himant. Yeah.
Heman Soni
Yeah, hi sir.
Apoor Bhagarwal
Hi. I
Heman Soni
Just wanted to ask you one thing sir. What will be the revenue growth guidance for the next year and any color on the margins for the next year?
Apoor Bhagarwal
Yeah. So you know, considering the current situation and you know considering companies expansion into product lines and also you know deeper penetration into. Into newer cities including south and west, we are looking at a growth of almost 25 to 30% based on you know, CAGR growth
Heman Soni
And any color on the margin. Sir,
Apoor Bhagarwal
The margins you 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 the EBITDA margin should stay in the range of 19 to 21%.
Heman Soni
So sir, EBITDA margins in the range of 19 to 21% and revenue growth in the range of 25 to 30%. Right?
Apoor Bhagarwal
Yeah.
Heman Soni
So sir, the thousand crores of revenue that vision we had. Yeah, that seems achievable by FY29, right?
Apoor Bhagarwal
Yes. Three years from now.
Heman Soni
Three years from now. Okay, sir, thanks a lot.
Apoor Bhagarwal
Thank you.
Kunal Tokas
Next question is from Mr. Kunal Tokas.
Unidentified Participant
Hello. Am I clear?
Apoor Bhagarwal
Yeah, Kunalji, I can hear you.
Unidentified Participant
Thank you. Mr. Dharwal, my first question is you talked about starting to export Wembley valencies. Yeah. I also recall you had mentioned sometime last year that we might do contract manufacturing for Kaikly for regions like Russia. But that stalled for some reason. So is there any progress on that?
Apoor Bhagarwal
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 balance 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 spine 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 because of the prices the, you know, the polyurethane ranges are not able to be sold. So this will be. This sale will be done under the Wembley Valentino brand now.
Unidentified Participant
Okay, understood. But there is still possibilities of going in with the Circa brand as well sometime later.
Apoor Bhagarwal
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 Spice 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 origins. 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.
Unidentified Participant
Okay. Okay. And second, what are, what, what is the current utilization of our capacities at different places?
Apoor Bhagarwal
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 1,750 tons per annum. So the total capacity today almost stands at 7, you know, 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 1 which is the Circa core.
Circa unit. And beside that the. 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 capacity, four units of old Wembley distributors into one where we have installed almost three times the capacity that Wembley had earlier. So, so here we are sorted to, you know, reach to a turnover of about 250 to 300 crores with the right product mix of nitrocellulose and polyurethane. So in the journey of thousand crores we are more or less sorted with the Circa and the Wembley capacities.
Unidentified Participant
Question is about competition. Are you seeing increasing competition from the larger players like or Ultimot making a move on this premium coatings segment right now?
Apoor Bhagarwal
Yes. So you know, as we always speak about, Circa 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 waterborne coatings, we still prefer to move through design specific designer specification. And that is why companies major marketing, marketing, you know, 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, 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 Circa products.
Unidentified Participant
Okay sir, understood. Thank you for answering my questions and have a good day.
Apoor Bhagarwal
Thank you.
Kunal Tokas
Next question is from Ms. Rasha mehta.
Rasha Mehta
Thank you. I hope I’m audible.
Apoor Bhagarwal
Yes Reisha, you are audible.
Rasha Mehta
Yeah, thank you. So I am fairly new to the company. So just to understand the brand architecture, the Silka brand is premium and Wembley and welcome which I believe are the two acquired brands that operate in the mass segment. Is this understanding right?
Apoor Bhagarwal
Absolutely right Risha.
Rasha Mehta
And you know, so I think you know before we used to import a lot of Silca 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?
Apoor Bhagarwal
Yeah. So Lesha, yes, as you rightly said, we started as a pure trading company until FY24. 100% of our revenues coming was from import and trading, no manufacturing since. 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 seen 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 the 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 saved say a 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 reduce the selling price by 12, 15% after being becoming cheaper and then 4 to 5% we have increase our marketing cost. 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.
Rasha Mehta
Understood. And you know, I think Wembley brand when they 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 Wembley 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?
Apoor Bhagarwal
Yes, so Risha, there are a couple of reasons where we don’t see a lot of growth in the Wembley Wembley brand since it was the first year. So first year the transformation and you know the teething problem took was a little more than what we expected. So the, so when we acquired the brand, so the old distributors did, you know, extended and some more quantity sales before the acquisition was completed. So you know there’s their 72 odd cr sale. Last year they had almost 5, 6 crore sale that they did additional before the transition.
So one strong billing to all the 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 was, you know, which actually made us, you know, lost revenue of about 4 to 5 watt crores, you know, in, in the month of March. So we almost lost orders of 4 to 5 crores in March from Wembley. Had it had 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 distribute, all owners of the company have completed, we expect that this revenue will show real growth.
Rasha Mehta
Okay, and can you just call out your RM basket, you know, your top four, five RMs and what is their percentage allocation at a company level?
Apoor Bhagarwal
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 bypass parts of crude. So solvents include solvents like toluene, like butyl acetate, like pma. And then the third part which is the smallest part is the additives which comes from global suppliers like BYK, Dow, Bear. 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.
Rasha Mehta
Okay, and resins and solvents both are essentially imported, right? Or do we buy it from local dealers?
Apoor Bhagarwal
No, both are essentially important and mostly we buy from the dealers and 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.
Rasha Mehta
Right. And you know, so since we, what would be our export revenue salience Would it be very small, negligible or
Apoor Bhagarwal
Negligible? If we talk about absolute numbers, last year was about 9 crores majorly from Nepal and 1 to customers from Sri Lanka. This year, under the brand Wembley Valentino, we expect to grow our exports from the first quarter itself.
Rasha Mehta
And so, you know, you did say that you have faced some challenges in 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?
Apoor Bhagarwal
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 nitro cellulose 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 and pressures from, from the supply because it is a product which also go in defense. And you know, 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 Nitrics gets operational. So currently only with this raw material we are facing shortages. We are which, you know, where, where we are not able to supply the nitro cellulose products completely. But we are expecting that within June it will streamline and, you know, we will be back on track.
Rasha Mehta
So basically only the Wembley brand gets impacted, right, because of the nitrous.
Apoor Bhagarwal
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, in the raw material.
Rasha Mehta
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?
Apoor Bhagarwal
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. Liuji Durante, we decided to 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 comfortable and competitive to export to other nations.
So maybe in the coming quarters or in 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.
Rasha Mehta
Understood. And you know the. 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?
Apoor Bhagarwal
You know, currently majority of our revenues even after acquisition of Wembley and Welcome, which were also north 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 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.
Rasha Mehta
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.
Apoor Bhagarwal
See, no, what I think is that, you know, Circa is a brand which is not new to west or south market. 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 Company is recognized as one of the preferred partners for furniture manufacturers in those regions. So people like Godrej, people like Nursey, people like Spacefood which are in Nagpur, Nasik and Pune are using our products since many years.
So you know, we. Circa is a, is a, 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 were, 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, 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.
Rasha Mehta
Right. And one last question if I may. Right. So what are the price hikes that we have taken? You did call out we’ve taken two price hikes, but just if you could quantify that.
Apoor Bhagarwal
Yeah, so at the circle 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 welcome side, the price increase has been approximately 35 rupees per liter.
Rasha Mehta
And this is enough to offset the RM price inflation so far.
Apoor Bhagarwal
So far, yes.
Rasha Mehta
All right. Okay, thanks. Thanks so much Apura for answering all my questions. I’ll join back with you.
Apoor Bhagarwal
Thank you.
Kunal Tokas
Next question is from Mr. Mahesh atal.
Mahesh Atal
Congratulations on good set of numbers. Apurva. Am I audible?
Apoor Bhagarwal
Yeah, thank you, Mahesh.
Mahesh Atal
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 if you can just give some guidance on that.
Apoor Bhagarwal
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 poly to polyurethane technology is happening very fast in the market which will, you know, circa 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 Circa. The third again, very important as also mentioned earlier that Circa is expanding into newer territories with a core focus in west and South. An experienced team coming in and joining us for last six, six months are already started, 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 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 reason that I mentioned. And third, the distribution network and Wembley welcome integration will give us more powers to increase the sales fuel our, you know, strategy and thought of registering the growth that we did this year.
Mahesh Atal
So you will be maintaining the same growth numbers that you have delivered this financial year. Are you confident on that?
Apoor Bhagarwal
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.
Mahesh Atal
Okay, so I just want to understand the. Let’s. I just want to go to the basics. I mean. Yeah.
Apoor Bhagarwal
To
Mahesh Atal
Understand your business. So let’s say I, 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? Like basically what is your selling point? I mean why would someone come to buy Circa as a brand and where exactly this polyurethane thing you say, right? What was prior to polyurethane is what I want to understand.
I mean.
Apoor Bhagarwal
Okay, so I will answer your second question first. Before polyurethane people were mainly using melamine. Melamine is a, is a two component product but only with 10% hardener and very, 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 high 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 call 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 paints, Berger Lake and also keeping Circa as a product. So these are the three main influencers and you know, Circa has been originated and Circa has been positioned as a premium wood coating player in the market. And that is because of the design fraternity.
Circa 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 specification goes into their drawings and goes into their, 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 100% of our sale which we do is secondary. Then we also run a very strong influencer program with contractor on Circa Parivar app and dealer act as our logistic partner who keeps our product and sell it to the as per demand.
Mahesh Atal
Capex number for FY27.
Apoor Bhagarwal
Huh?
Mahesh Atal
Capex. Capex. Any capex outline for FY. You
Apoor Bhagarwal
Know, for FY27 we are not actually expecting very big Capex. We are only expecting a 5 to 6 odd crore capex which we will do to enhance our production of the acrylic products which we have just completed. The know how most of the Capex has been completed this year which were mainly towards the Wembley welcome site to consolidate 3, 4 different facilities into one for cost economies and also to increase the capacity for next three years.
Mahesh Atal
What is the royalty number that the parent company gets from the sale?
Apoor Bhagarwal
The parent company gets 0.75% of our total reported revenue.
Mahesh Atal
That is excluding the Wembley brand. Right. Wembley brand is something that we have acquired on our own.
Apoor Bhagarwal
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 bringed out, we calculated that number of 0.75%. But on the total reported revenue.
Mahesh Atal
Okay, okay. And what’s the now what, what something so specialized about Wembley 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?
Apoor Bhagarwal
You know, Vemli 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 polyrhythm 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 as sanding sealer letter. 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 all together. 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.
Mahesh Atal
And the margins on that would be higher than our existing business margins or it would be on the same lines?
Apoor Bhagarwal
No, no, the margins on these products are less than the Circa luxury product range.
Mahesh Atal
How less? I mean, can you just quantify the margins that this, this business will have?
Apoor Bhagarwal
You know, this business has all 10, 12% less gross margins compared to 15% less margins than compared to gross margins compared to, you know, circa. 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, lacquer under the Wembley brand and you know, PU under the Valentino, which we intend to offer to the mass, 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 Circa, but you know, final ebitda, if I make a separate balance sheet of Wembley, Wellcome and Circa, the final EBITDA would still come down more or less at the same level.
Mahesh Atal
Okay, so basically what you are saying is that absolute driven, absolute numbers would be increasing and. But the margins would be shrinking.
Apoor Bhagarwal
Yeah.
Mahesh Atal
Okay, so you would be actually increasing your top line a lot because of adding this thing, Right?
Apoor Bhagarwal
Exactly.
Mahesh Atal
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 may be slightly decrease on that.
Apoor Bhagarwal
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 Circa 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.
Mahesh Atal
And what is the price differential between the melamine thing and this polyurethane thing?
Apoor Bhagarwal
See, if we talk about per liter melamine today, after so much increase, about 230, 240 rupees a liter PU comes out and 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.
Mahesh Atal
So basically polyurethane would be on the higher side and then. Yeah,
Apoor Bhagarwal
Is on the higher side. Yes,
Mahesh Atal
But then the quality, as you said, or maybe the.
Apoor Bhagarwal
Anyone can make from naked eye, even a layman.
Mahesh Atal
Okay, all right. Okay, thank you, Apurva. That’s all from my Side and all the best.
Apoor Bhagarwal
Thank you, Ma.
Kunal Tokas
Next question is from Ms. Rasha Mehta.
Rasha Mehta
Yeah, thank you. So I would presume you would have an exclusive right to sell the Circa branded products in India, right?
Apoor Bhagarwal
Yes, Resha. We have a agreement, brand agreement with them which you know, which is currently till 2041.
Rasha Mehta
Understood. And acrylic products are there, new product line and hence a new revenue stream for us. And would this also be under the Circa brand?
Apoor Bhagarwal
Yeah. So acrylic is under the Circa brand and these were the products which still in the market is being 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 an 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 architect segment.
Rasha Mehta
Okay. So the application would be the same for acrylic products just like the pu.
Apoor Bhagarwal
Yeah, the method of application is exactly the same. Like we apply P, 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 has a property which gives you even a smoother finish. So it is something which is, you know, more premium than polyurethane.
Rasha Mehta
Understood. All right. And your thousand crore revenue vision basically also captures the opportunity that arises from acrylic products, right?
Apoor Bhagarwal
Exactly. Yes, ma’. Am.
Rasha Mehta
All right, that’s it. Thank you.
Kunal Tokas
Next question is from Mr. Tanmay mehta.
Tanmay Mehta
Hello.
Apoor Bhagarwal
Yeah, hi. Yes you are audible.
Tanmay Mehta
Yeah, hi sir.
Apoor Bhagarwal
Hello.
Tanmay Mehta
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?
Apoor Bhagarwal
See, you know, we are expecting the exports to under Wembley and Valentinos to start, you know, within the first quarter. We already have certain orders. But because of the current ongoing situation, we are still, you know, 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 contributor in the revenue. If not 5% we are expecting should be near 3 4%.
Tanmay Mehta
Okay. And one more question I would like to ask like which geographies beyond North India are you prioritizing for Wembley’s distribution?
Apoor Bhagarwal
So Wembley, Pan India, you know, 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 state cities of south and West.
Tanmay Mehta
Okay, thank you sir. Lovely voice.
Apoor Bhagarwal
Thank you.
Kunal Tokas
We will be taking next question from Mr. Arnav Khan.
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, can you give some explanation why is this the case?
Apoor Bhagarwal
Yeah. So Arnav, in last couple of years, because of our inorganic growth coming from the acquisition of the welcome 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, better inventories in terms, you know, to ensure that the transition is, is smooth. Beside 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 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 sign agreement of producing acrylic also in India. So acrylic sales were growing and almost contributed to almost 120od 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 you know, 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 Circa will start coming from now. So this will help us to improve the working capital in the in the coming days.
Unidentified Participant
Understood? Understood sir. Thank you. That’s all from my side.
Kunal Tokas
Okay, we will be taking last question from Mr. Mahesh Atal. Hello Maheshar, are you there? Okay, as there are no further questions, I would like the management to give the closing remarks.
Apoor Bhagarwal
All right, thank you Team Portal. And thank you everyone for joining. You know, at Circa, as I mentioned earlier, our vision remains very clear. To build India’s most aspirational and technologically advanced coating 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.
Kunal Tokas
Thank you. On behalf of Fin Portal, I would like to express our gratitude to the management team of Circa Paints India Limited for taking the time to join us and provide such detailed responses to the questions. We also, 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 ID is given in the chat box. You may disconnect now.