What’s new

• Revenue ₹130.01 cr, up 14% YoY; PAT ₹16.21 cr, also up 14%
• Growth decelerated from 32% historical CAGR as price hikes of 10% impacted volume
• Wembley and Welcome brands contribute roughly a quarter of revenue

Why it matters

The 14% growth marks a sharp deceleration from Sirca's historical 32% CAGR, suggesting the 10% price increase is weighing on volumes. With a trailing P/E of 35.6, even a minor slowdown can compress multiples. The open question is whether the volume drag persists.

What we’re watching

• Volume recovery in subsequent quarters as price hikes are absorbed
• Whether the 32% CAGR is achievable again
• Margin trajectory if raw material costs change

The full read

Sirca Paints delivered 14% YoY revenue growth to ₹130.01 crore and 14% PAT growth to ₹16.21 crore. That is a sharp deceleration from its historical 32% CAGR. The culprit: two price hikes totalling 10% earlier in the year that muted volume. The volume hit is real. The company's mass-market brands, Wembley and Welcome, contribute a quarter of sales and are likely the most affected because their customer base is more price-sensitive. With a trailing P/E of 35.6x, even a growth slowdown is costly. What matters now is whether the volume drag persists through the next quarter or if customers adjust.

Primary source: BSE · NSE

What’s new

• Q1 revenue at ₹130 cr, up 14% YoY, far below FY26's 32% growth and annual guidance.
• Net profit rose to ₹16.21 cr from ₹14.21 cr, a 14% increase.
• Company had raised ₹75 cr via preferential allotment recently; no dividend or guidance revision.

Why it matters

Growth has halved from last year's pace and is running at less than half the guided CAGR. The ₹75-crore cash raise pads the balance sheet but does not fix the volume problem from price increases. At a trailing P/E of 35.6, the market is still pricing in the old trajectory.

What we’re watching

• Whether management cuts its 35-40% CAGR guidance on the next concall.
• Volume recovery in the coming quarters as price hikes annualise.
• Use of the ₹75 cr preferential proceeds — capex, working capital, or acquisition.

The full read

Sirca Paints's Q1 numbers tell a story of deceleration. Revenue of ₹130.01 crore grew just 14% from a year earlier — a far cry from the 32% the company clocked in FY26 and the 35-40% CAGR it had guided for. Net profit rose in lockstep to ₹16.21 crore, but that's the same single-digit growth. The culprit is volume pressure from price hikes, as our prior coverage noted.

The company recently raised ₹75 crore via preferential allotment, adding cash to a balance sheet that already had negligible debt. Yet that does nothing to revive demand. At ₹2,312 crore market cap and a trailing P/E of 35.6, the stock still trades as if the old trajectory is intact. It isn't.

The open question is whether management will formally cut its 35-40% guidance. The market doesn't need a filing to see the arithmetic.

Primary source: BSE · NSE