Sirca Paints' Q1 growth slides to 14% as price hikes crimp volume
Revenue at ₹130.01 cr and PAT at ₹16.21 cr both rose 14% YoY, well below the 32% historical CAGR, after two rounds of price increases totaling 10% muted volume.
— 1 earlier story on SIRCA Paints India Ltd. →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 this 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.
Questions answered
- Why did Sirca's growth slow to 14%?
- The company implemented two rounds of price increases totaling 10% earlier this year, which muted volume. This quarter's growth of 14% is well below the historical 32% CAGR the company had been delivering.
- How much of Sirca's revenue comes from the mass-market brands?
- The Wembley and Welcome brands together account for roughly 25% of revenue. These are aimed at the mass market, which may be more sensitive to price hikes.
- Are the price increases fully passed through?
- The filing does not specify pass-through, but the volume impact suggests that at least part of the increase has been absorbed by customers, leading to slower volume growth.
- What is Sirca's current valuation?
- The stock trades at a trailing P/E of 35.6x, with a market cap of ₹2,312 crore. The high multiple leaves little room for growth deceleration.
- Is there any risk from debt?
- No. Sirca has a low debt-to-equity ratio of 0.14, so the balance sheet is not a concern.
Story so far
All notes on SIRCA →- 28 Jul 2026 · 3:22 PM IST Sirca Paints' Q1 growth slides to 14% as price hikes crimp volume
- today Sirca Paints' Q1 growth slides to 14%, well below guidance