Sirca Paints India Limited — Call Transcript 2025

Nov 15, 2025

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November 15, 2025

To, The Managing Director National Stock Exchange of India Limited Exchange Plaza, 5[th] Floor, Plot No. C/1 G-Block, Bandra-Kurla Complex, Bandra (E), Mumbai – 400051 NSE Symbol-SIRCA

To, The General Manager BSE Limited Department of Corporate Services Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400001 BSE Scrip Code: 543686

SUB: TRANSCRIPT OF EARNINGS CONFERENCE CALL WITH INVESTOR(S)/ANALYST(S)

Dear Sir/Ma’am,

This is to inform you that in terms of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the transcript of the Conference Call held on November 12, 2025, post the announcement of the financial results of the Company for the Q2 FY 2025-26 has been uploaded on our Company’s website: https://www.sircapaints.com/wp-content/uploads/2025/11/Transcript.pdf.

A copy of the transcript is also enclosed.

This is for your kind information and record please.

Thanking you,

Yours truly,

For Sirca Paints India Limited

Hira Digitally signed by Hira Kumar Kumar Date: 2025.11.15 14:13:19 +05'30' Hira Kumar Company Secretary & Compliance Officer

Encl: As above

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EARNINGS CALL SIRCA PAINTS INDIA LIMITED TRANSCRIPT – Q2FY26

Wednesday, Nov 12, 2025

04:00 PM IST (16:00hours)

COMPANY MANAGEMENT

Mr. Sanjay Agarwal Chairman & Managing Director

Mr. Apoorv Agarwal Jt. Managing Director

Ms. Shallu Arora Chief Financial Officer

Mr. Hira Kumar Company Secretary

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Hosted by: FINPORTAL INVESTMENT PVT LTD

Finportal: Hello, and good evening, everyone, and thank you for joining us today for Sirca Paints India Limited Q2 FY26 results call. I am Drishti from Finportal Investor Relations Team, and it's my pleasure to welcome you all. We are joined today by senior members of the management team, including Mr. Sanjay Agarwal, Chairman and MD, Mr. Apoorv Agarwal, Joint Managing Director, and Mr. Hira Kumar, Company Secretary. Due to some unavoidable circumstances, Ms. Shallu Arora, the CFO, is not able to join. Let me now hand it over to Mr. Apoorv Agrawal to take you through the key financial highlights. Over to you, sir.

Mr. Apoorv Agarwal: Thank you so much, Drishti, and good evening, everyone. I am pleased to share with you the financial performance of Sirca Pains India Limited for the second quarter of FY26. Revenue from operations increased to INR 131.17 crores in Q2FY26 from INR 105.46 crores in the same quarter last year. This represents a robust growth of 24.37% year-on-year. 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 matrix for this quarter. EBITDA for the quarter to FY26 increased to INR 27.40 crores from INR 18.96 crore in the same quarter last year, reflecting a healthy growth of 44.52% yearon-year. Our EBITDA margin for the quarter stood at 20.89%, compared to 19.74% in quarter 1 of FY26.

Looking at the bottom line, profit after tax increased to INR 18.10 crores this quarter from INR 13.28 crores in quarter one of FY26.This represents a 36.3% year-on-year growth impact.

Now, I would like to take this opportunity to share with you some key business updates from Quarter 2 of FY26, and outline our outlook for the coming quarters In line with our long-term growth strategy, Sirca undertook a major operational integration and capacity expansion for the Wembley brand. We have initiated the consolidation of three existing Wembley manufacturing units into a single integrated production facility. This strategic capex initiative is aimed at achieving higher efficiency, scalability, and cost optimization. The new facility, currently under commissioning, is expected to become operational around Q4 of FY26.

Once commissioned, it will mark a significant milestone for the company, enhancing manufacturing productivity, improving the margin profile, and driving operational agility across both our Welcome and Wembley product lines. The new product range in Wembley, launched under the Valentino sub-brand, has started gaining traction across the existing distributors of Wembley reinforcing Sirca's commitment of building a comprehensive product portfolio that serves both the premium and the mass premium category. In a significant development, Sirca Paints has extended its agreement with Sirca S.P.A Italy for the distribution, manufacturing, and use of the brand Sirca in India until 2041.This agreement is irrevocable, too. Under this extended agreement, Sirca S.P.A, Italy will continue to transfer the technical know-how to the company for manufacturing of high-quality, high technology, acrylic, UV, and polyester-based wood pudding products in India. These products are currently being imported from Sirca S.P.A. Italy. This agreement not only reinforces our strategic partnership, but also marks a key step towards greater self-reliance, improved margins, and enhanced value creation through local production of premium Italian formulations. This agreement not only reinforce our strategic partnership, but yeah, it will also help us to grow together and, you know, improve the margins and localize the production.

Let me also touch upon our R&D and innovation front. Sirca continues to invest in the research and development to stay ahead of the market trend and consumer preference. We are particularly focusing on the high potential category, such as acrylic base, waterborne, where innovation and sustainability are emerging as key differentiators. Our continued investment in product advancement is directed towards improving durability, ensuring regulatory compliance, and enhancing user friendliness, reaffirming our commitment to quality and technological leadership. On the demand front, we are beginning to see encouraging signs of market recovery, particularly in urban areas and organized manufacturing sectors. This improving sentiments, coupled with our differentiated and diverse product portfolio. Positions us well to capture the next phase of growth. With Indian furniture manufacturing sector on a strong expansion trajectory, supported by rising domestic consumption and increasing global sourcing. We anticipate a substantial upstick in demand for PU and acrylic coatings across both organized and semi-organized segments. From a brand and market development perspective, Sirca continues to deepen engagement with the interior designer community, a vital influencer group in the premium coating space. Our facilitation of the top 30 industry designers at an event called ARTH Dubai has significantly enhanced our brand visibility and strengthened our credibility within the design circles. At the same time, we remain focused on expanding our geographical footprint, particularly across West and the South of India. We are making steady progress through enhanced distribution network, dealer onboarding and strategic retail partnerships, all aimed at capturing emerging growth pockets and improving our overall market penetration. Overall, the outlook for FY26 and beyond remained positive, with strong execution of our operational integration, sustained R&D efforts and the extended collaboration with Sirca Italy, Sirca Paints is well-positioned to capitalize on upcoming opportunities and drive sustainable value creation for all stakeholders.

And now, I would like to hand over the call to the moderator for the Q&A session. Thank you.

Finportal: Thank you so much, sir. Well, I request all the participants who wish to ask a question may please raise their hand, and we will take question one by one. So the first question is from Kunal.

Kunal Tokas: Am I audible?

Finportal: Yes, sir.

Kunal Tokas: Okay. Three quick questions, sir. First is about your trade receivables, which, a large jump from where they were in March 25, at the end of March 25, they have increased 48% from then. And hence, CFO has been very measly, despite making good profits. So, can you explain that, please?

Mr. Apoorv Agarwal : The trade receivable from the march sees a jump also because of the addition of sales from the brand Wembley. So, there has been an additional sales, which has been, you know, has been a part of the total or overall revenue growth, though we have seen the quarter one and two being tough, considering the overall market conditions. We have seen a little, little tightness towards the data side, but the majority, the major chunk of the jump is seen because of the Wembley sales being consolidated in the revenue. So the, that is why the big jump ceased from the March, numbers.

Kunal Tokas : Okay, understood. And, due to Wembley and Sirca Italy should we have a longer better cycle?

Mr. Apoorv Agarwal : So, because it was a transition period, and we had our terms and conditions also with the old owners of the brand, so, because it was the transitional thing, there were some teething problems with the closure of accounts with the old company of the existing distributors, which were majorly sorted by the mid of the quarter two, and the payments the newer payments to the company started coming but

the average credit period remains around 60, but because of the transitional change, it took went to 90-95 days, but in the coming quarters, it will again come back to the 45-60 day cycle.

Kunal Tokas: Okay, so this was temporary. Yeah. And, I've been confused about this for some time, but can you explain if the Wembley and Welcome brands were acquired at the same time and from the same person?

Mr. Apoorv Agarwal: No, so the Wembley brand was acquired, in the, on the 21st March 2025, so, in this year, and the Welcome brand was acquired in June.

Kunal Tokas: Yeah.

Mr. Apoorv Agarwal: Yeah, last year, yes. And, you know, the owners are different, but they are two real brothers.

Kunal Tokas: Alright, I guess that wasn’t that was why I was confused. And also, can you explain what products does the Valentino sub-brand cover? So, what type of customer will it cater to?

Mr. Apoorv Agarwal: Yeah, you know, so with the polyurethane technology becoming like a consumer and mass product, under the brand Valentino, we are going to cater to the retail and market retail demand of the polyurethane coating, so general mass polyurethane products.

Kunal Tokas : Okay, understood, sir. Thank you very much, and have a good day.

Mr. Apoorv Agarwal: Thank you.

Finportal : Hello, I apologize, we got some technical issues. I would like to take next question, investors, please raise your hand. The next question is from Hemant Soni. Mr. Hemant Soni, you can ask the question.

Hemant Soni: Hello, thank you for providing me the opportunity. Just wanted to ask one thing. I mean, what will be the revenue guidance for this year? And the thousand crores of revenue, I think we have an aspiration. It will be hit in which year, sir?

Mr. Apoorv Agarwal: Hi. So, you know, we as a company are expecting to grow at a 35-40% CAGR growth, and considering that, by FY30, we would touch the revenue of 1000 crore.

Hemant Soni: And serving, for FY26, shall we expect 35-40% only?

Mr. Apoorv Agarwal: Yeah, for FY26, we are expecting, approximately 35-40% growth.

Hemant Soni : Okay, sir, thank you.

Finportal: Thank you, Hemant, sir. Take the next question from Investor, please request you to raise your hand. The next question is from Khushi Jain.

Khushi Jain : Oh, yeah, hi, good evening. Am I audible?

Mr. Apoorv Agarwal: Yes, you are audible.

Khushi Jain: Yeah, so my question, was around EBITDA margin that has actually expanded to a higher band of 21%, versus it was 18% in the same quarter last year. So we access that, Family and Welcome are now integrating, but operate at a relatively lower profile than what the standalone Sirca brand is. So, what has been the key triggers for this margin expansion?

Mr. Apoorv Agarwal: So, you know, the main trigger has been the Quarter 2 has seen some relaxations at the raw materials site, especially solvents which allowed us to have better graph margin in the product lines of Wembley and Welcome also. Plus, the sale of high-value products like acrylic has contributed decently in the Q2 revenues, which are, again, the better margin products. So overall, at the EBITDA level, we have seen this jump.

Khushi Jain: Thank you. Another question was, could you please, share the Welcome and Wembley revenues for this quarter, and half year, if possible?

Mr. Apoorv Agarwal: So, for this quarter, the combined revenue from Wembley and Welcome were about 29.50 crore, out of which 18.36 was coming from the Wembley, and the rest was coming from the Welcome.

Khushi Jain: Good. Okay, okay. And, when is the consolidation of Wembley plants likely to be completed?

Mr. Apoorv Agarwal: So, we're expecting by the late January 2026.

Khushi Jain: All right, all right. Perfect. Yeah, that's all from my end. If I have something else, I'll just come back in the queue. Thank you so much for answering.

Mr. Apoorv Agarwal: Thank you, Khushi.

Finportal: Yes, Hemant, you can now ask the question.

Hemant Soni: Hello?

Mr. Apoorv Agarwal : Yes, Hemant?

Hemant Soni: Yeah, thank you for providing me the opportunity again. Sir, if I do a math and a back calculation, so going at a 35% or 40% figure, I think the revenue will be close to 1200 crores by FY29 only. So, I mean, are we some sort of conservative in our guidance of 1,000 crores?

Mr. Apoorv Agarwal : Yes, so we are keeping our approach to be conservative, and yeah, conservatively, we, anticipate that, you know, by FY26, we should reach the 1,000 crore, revenue.

Hemant Soni: by FY30, right.

Mr. Apoorv Agarwal: Yeah, FY29-30. So, as, considering our conservative approach and, you know, the current market conditions, we, we, we look for the 1,000 crore revenue to be touched by 2030.

Hemant Soni: And, sir, one more thing, I mean, as per, I think, the, earlier con calls for the PPTs.

Mr. Apoorv Agarwal : No.

Hemant Soni: We had guided for 25% to 30% kind of revenue growth in FY26, I just checked it. So, are we some sort of upping the guidance?

Mr. Apoorv Agarwal: So, the consolidated 35-40% revenue growth is after considering the consolidation of Wembley as well.

Hemant Soni: Okay, earlier Wembley wasn't factored in, right?

Mr. Apoorv Agarwal : Yeah.

Hemant Soni: So, 35 to 40% CAGR looks easily achievable till FY30, right?

Mr. Apoorv Agarwal : Yeah, yeah.

Hemant Soni: Okay, sir, thanks a lot.

Finportal: Thank you, Hemant Now I would request participants to raise their hands to ask the question.

Kunal Tokas: Hello, am I audible?

Mr. Apoorv Agarwal : Yeah, Kunal, you are audible.

Kunal Tokas: Okay. Thank you. After this, tie up with Sirca where we get the right to manufacture the products in-house as well. What do you think what are the targets for working capital for the next year?

Mr. Apoorv Agarwal : Sorry, what is the targeted?

Kunal Tokas: Working capital.

Mr. Apoorv Agarwal: No, the working capital, after, you know, manufacturing these new range of products like acrylic and polyester base, the working capital of the company overall will go down because our import dependency will reduce. Today.

Kunal Tokas: Yes, that's what I was asking. How much would this work improve after this?

Mr. Apoorv Agarwal: Yeah, so we will, come down to about 95 to 100 days.

Kunal Tokas : 95 to 100 days.

Mr. Apoorv Agarwal: Yeah.

Kunal Tokas: Okay. And also, can you explain what¦ would you be able to elaborate on your targets for the paint segment undergoes brand?

Mr. Apoorv Agarwal: Under the oil cost, the company is focusing only on the special decorative paints, which are called as textures, which is a very, very, very niche market. So, with the oil cost, this year, we are, expecting a business of 10 crore out of the total company revenue, which is, in terms of number, not big, but yeah, it is a high gross-margin product, and our entry, and it allows just a quick entry at the interior designer level, because it is a product which is very niche, and, you know, is applied, say, on a couple of walls in the whole house, but it is a product which has very less competition, high margin, and, you know, add lights to our total productivity. So, with Oikos, our focus currently remains only on the specialized texture-based decorative paints, rather than the solid paint.

Kunal Tokas: Okay, and the 90 to 95 days working capital you mentioned, you expect that to happen by the next year?

Mr. Apoorv Agarwal: Yeah, by next year, because the production of the new line of products, like acrylic and polyester, will, will come in full swing from the first quarter of next financial year, so it will begin in quarter four. Yeah, but it will come in full swing, and the imports will, you know, the import inventory will go down from late March.

Kunal Tokas: Okay, thank you very much.

Finportal: Next question is from, Neel.

Neel Chopra: Hello, am I audible?

Mr. Apoorv Agarwal: Yes, Neel, you are audible.

Neel Chopra: Thanks for the opportunity. So, basically, my question was, in your business, contractors plays a key role in selecting which mentor to use. So, what strategies do you use to ensure that contractors will prefer your products over other competitors?

Mr. Apoorv Agarwal: Yeah, so with contractor, we are doing the engagement program around the year. So, first, we focus a lot on their training, so that they can use the product in the right way and achieve the finish that this product deserves. which allow, you know, the contractors also to have more sites by showing their quality. Secondly, we run an app called Sirca Parivaar app, where we have 16,000 registered contractors only from the northern part of India, which scan the products daily, and, you know, on the yearly basis, they become a part of an attractive reward program, which is, you know. which is given by the company in the form of gifts and also trips, and under these trips, the company has developed a very strong personal as well as business relations with these contractors, and that is why Sirca has become the preferred choice of these set of contractors.

Neel Chopra: Okay, got it. And my next question was, basically, you have a very strong presence in North India, but what are your plans to expand your presence in other regions of India?

Mr. Apoorv Agarwal: So, Sirca, as an OEM brand, is also very strongly present in the West and the South, where key furniture manufacturers and kitchen manufacturers are using our product. At the retail level, company has opened almost 7 new depots in this current financial year, from Surat to Hyderabad to Bangalore, and the latest one, coming up, in Chennai, in Kerala. The company is also now, you know, aggressively marketing and, you know, retailing the products in the South and the West region, and, you know, we are gaining traction very slowly and steadily in these states also. So by couple of years ahead, we looked at, you know, retail contribution of revenues from the South and the West will also become noticeable.

Neel Chopra: Okay, got it. Thanks for answering the question, sir.

Mr. Apoorv Agarwal : Thank you.

Finportal: I request the participants to raise their hand for asking the query. Dear participants, if you have any questions, yes, we have the next question from Mr. Deepak.

Deepak Ajmera: Yeah, hey, sorry if it is unsure earlier also, means, the company is new in our tracking, so if you can, highlight what's your age compared to the other players, and when the industry is not growing that fast, how come we are growing come the margin is sustainable.

Mr. Apoorv Agarwal: So, hi. So, you know, Sirca Paints is, is one of the first company, you know, to launch the wood coatings in India, and we are almost 20 years old now in the market. The product portfolio and the product mix of Sirca paints is majorly the high-quality luxury wood coatings, which actually become the main differentiator, and that is why we stand out of the other paint brands in the market, where, you know, the major contribution of their revenues are from the decorative paints, and Sirca paints, the major contribution is by the luxury wood coatings. That is why our margins, are, you know, different from the immediate, paint players.

Deepak Ajmera: Yeah, so I'm not comparing with the paint players, but in decorative wood coating itself, means, compared to other players, what's the age? Is there any, like, means any brand edge is there? Any technological edge is there? I mean, what's the edge in this business here?

Mr. Apoorv Agarwal: So, you know, as I mentioned, that Sirca became the first one to launch these kind of polyurethane coatings markets, so we enjoy a first-mover advantage, because Sirca was positioned, and till now is positioned as a pure wood coating and a pure Italian wood coating player, which, that is why we have become the preferred choice of interior designer architect and contractor. Because they have this 20-year of trust of pure Italian-made wood coatings. And secondly, obviously, with the support and the benefit and the advantage of Sirca Italy, we have been consistent in terms of the quality of our product, and also, we have been the first one to launch and provide Indian market with the latest and the newest technology of any wood coating product. So we became the first to launch PU, then we became the first to launch acrylic, then we became the first to launch Water bonds, so that is why our positioning has been very different, which gives us an edge amongst the key influencer, which is the contractor and the architect.

Deepak Ajmera: Got it, thank you.

Finportal: Next question is from Mr. Kunal.

Kunal Tokas: Hello, I'm audible.

Mr. Apoorv Agarwal: Hi, Kunal, yes!

Kunal Tokas : Yes. Thank you very much again, sir. Just one quick question. What's your market share in Delhi NCR?

Mr. Apoorv Agarwal: So, in Delhi NCR, we enjoy almost a 45% market share.

Kunal Tokas: In coating business, right?

Mr. Apoorv Agarwal : Yes.

Kunal Tokas : Do you have segmentation where you classify it as premium, sub-premium, because you say your speciality is premium luxury coatings?

Mr. Apoorv Agarwal : Sorry, Kunal, can you repeat?

Kunal Tokas: Do you differentiate between the market share in the sort of general mass category versus premium category, where Sirca is more dominant?

Mr. Apoorv Agarwal: Yeah, so we consider ourselves in the premium luxury category only when it comes to the polyurethane coatings.

Kunal Tokas : And are there data points available for how much a share would be in that category?

Mr. Apoorv Agarwal: So, in that category, there are only, you know, a couple of players who are operating only in that category, so with their sales data available, we consider ourselves having a 45% market share in Delhi.

Kunal Tokas : Okay, alright, thank you very much.

Finportal: Thank you, Kunal. Next question is from Mr. Sunil.

Sunil Kateshiya : Hello, sir. Congratulations for good set-off number.Hello.

Mr. Apoorv Agarwal: Yeah, thank you, Sunil.

Sunil Kateshiya: Yeah. Sir, just wanted to check, you have mentioned saying that there's a guidelines of around 40% growth for next 3 years, right? 30-40% growth.

Mr. Apoorv Agarwal: Yes.

Sunil Kateshiya: Okay, what gives you the confidence, because what I say is that we are I'm part of the investor, so it's our company. So, what I mean, we are based out of, Delhi NCR, largely. And not in South or any other region. So, what are the plans to grow our network, and how confident that we will achieve this target? I mean, what gives you that confidence that definitely we will have that 40% growth?

Mr. Apoorv Agarwal: See, there are many factors which, you know, allow us to be confident that, you know, we will be delivering this 30-40% CAGR growth. First is, you know, the signs of recovery in the market and, you know.

Sunil Kateshiya: That was the industry?

Mr. Apoorv Agarwal : Industry, which is expected to grow quite aggressively in the coming years. Showing some signs of the, of, of, you know, of the growth. Secondly, we have.

Sunil Kateshiya: Why are you all saving your diagnosis, diagnosis?

Mr. Apoorv Agarwal: Sorry, yeah, so now it's better. So, secondly, Sunil, we have also recently acquired brands like Wembley and Welcome, which are currently not-centric, and we are, you know, expecting a good set of growth also from the Wembley and Welcome, not only by the distribution expansion, but also by adding the product category of mask quality favourite thing, which I earlier mentioned in my statement under the brand called Valentino. Thirdly, also, you know, the polyurethane as a technology is becoming a commodity, and, you know, it is gaining a lot of retail traction, and there is a shift of the product from technology of melamine to PU, which is, again, contributing in the growth of the sales of polyurethane products. So, combining all these, factors, we are quite confident that we will be able to achieve the numbers that we are talking about.

Sunil Kateshiya : Great to hear this. Sir, I am not good at understanding the actual product. So, the new product, these two new products which we have introduced, is this a substitute to our old product, or it's totally a different product, which will be addition to the requirement to polish the wood and all? Just help me understand this, please.

Mr. Apoorv Agarwal: Sorry.

Finportal: Apoorv sir, you are not audible.

Mr. Apoorv Agarwal: Sorry, Sunil, I lost you in the middle. Can you repeat your last question?

Sunil Kateshiya: Okay, my question was that the two new products which we have introduced recently, is this the substitute to our old product, or it's a totally different product which will be applied on a wood. I mean, in addition. So, are we having our sales, extra sales, or it will be a substitute to our earlier one? Just help me understand this product.

Mr. Apoorv Agarwal: Yeah, so Sunil, these brands that we have acquired, their product line has a totally different technology product than what we are selling under the brand Sirca, which is predominantly high-luxury wood-coating polyurethane products, but under the acquired brands, the technology is altogether different, and the customer and the target audience is altogether different So it is a pure addition.

Sunil Kateshiya : Okay, that's all from it. Thank you so much, and best of luck.

Finportal: I request the participants to raise their hand for the question. Dear participants, if you have any more questions, you can raise your hand. The next question is from Mr. Shreyansh.

Shreyansh Talesara: Hello.

Mr. Apoorv Agarwal: Hi, Shreyansh.

Shreyansh Talesara: Hello, thank you for the opportunity. Sorry if I may sound naive or repetitive. I'm relatively new to the company, so just wanted to understand, how are we differentiating from other paint companies? And I just heard on the call that, you know, you guys are guiding about 30-40% sort of a growth number. That is for FY26, or that is largely for next 2 to 3 years? Given that this would be from acquisition-led, could you give also give us any sort of understanding that, how is this acquisition going to help us? And it is, like, more of a capability-based acquisition, or sort of a geographic-based acquisition that'll enhance our capabilities in terms of geographic reach. That will be helpful.

Mr. Apoorv Agarwal : Yeah, so Shreyansh, operates in the wood coating segment, which is quite different from the key players in the paint industry, where their main revenue contribution is by the decorative paints. So, we currently operate in a niche luxury wood coating segment, and after the acquisition of the brands Wembley and Welcome we are trying to enter in the mass wood coating segment, because Wood coating as a product category is gaining a lot of traction in the market because of the increased use of MDF and wood, and the furniture industry in India is, you know, all set for a next-level growth in the coming next 2 to 5 years. So, with Wembley and Welcome, we are have added an altogether different product line and with this, we have also, you know, taken over a newer distribution network, which will also help us to grow the business of the polyurethane products, which is our core business. So, this strategic acquisition will give us both the horizontal as well as the vertical expansion, both at the product level side also, and the distribution level side. And considering this acquisition, and considering the overall market dynamics of polyurethane, furniture industry, product shift. These three factors actually, you know, allow us to believe that the next two to three years will be the golden period for this wood coating industry, and that is why we are eyeing this kind of growth for next two to three years.

Shreyansh Talesara: Got it, got it. And these traditional paint players, again, sorry if I'm being, naive again on this part, but these traditional paint players, they would have very less proportion of their contribution, coming from wood coating segment, is my understanding correct?

Mr. Apoorv Agarwal: Yeah, from the luxury product side, like the high-quality polyurethane acrylic and water bond, their contribution is negligible.

Shreyansh Talesara : Got it, got it. And that makes you, or that is the sole reason why, you guys enjoy a better operating margin?

Mr. Apoorv Agarwal: Absolutely, because we operate and our majority of the revenue, majority, comes from the high-quality wood coating products.

Shreyansh Talesara : Got it, got it. So, so wood coating is that MDF sheet, page, or whatever paint we do, and, like, on the normal, the furniture application has been increasing on the wooden side, so that is the whole play, right?

Mr. Apoorv Agarwal: Absolutely, absolutely. Got it, got it. MDF, SGF, SGHMR, k upar chahe wo kitchen, wardrobe k shutters ko banana k liye use horha hai, or furniture ko banane k liye use horha hai, uske upar jo white krke, we apply any color, which we choose from the shade. That is the polyurethane technology, and that is the main contributor of our revenue.

Shreyansh Talesara : So, just a follow-up maybe on that is why the traditional players are not focusing so much on this, given that this space is much more lucrative. Is it because it takes time for anybody to crack this formula, or this overall size of the market is not as big, or is not as attractive for them? What is that?

Mr. Apoorv Agarwal: Yeah, so, you know, this pigmented products which are applied on the MDF or SGHMR, it is not that the other paint companies are not including these products in their product category, but as of now, their prime focus still remains the decorative industry, which is a 90,000 or a lakh crore industry. So, you know, their focus still remains there you know, this pigmented industry is still a smaller size, and still, we can say, niche, but again, as I told you, it's growing, and next 3 to 5 years are going to be very important for the wood coating industry. So there, enjoy a first mover advantage.

Shreyansh Talesara : Got it. Sir so that 30, 35, or 35, 40% sort of, run rate, or the revenue, growth number, seems quite plausible for next, 3 years.

Mr. Apoorv Agarwal: Yes, yes, Shreyansh.

Shreyansh Talesara: With similar kind of margins, right? Around 20%. Perfect, thanks. I'll fall back in the queue. Thank you.

Mr. Apoorv Agarwal: Thank you.

Kunal Tokas: Hello, sir. What would the All India market size for wood coatings be?

Mr. Apoorv Agarwal: So it is estimated to be about 9,500 to 10,000 crore, the whole from the mass polyurethane to NC melamine and all the technologies.

Kunal Tokas: Okay, and the segments where you specialize, what proportion of that would it be?

Mr. Apoorv Agarwal: So, if we talk about only polyurethane

Kunal Tokas : High quality polyurethane

Mr. Apoorv Agarwal: Yeah, high-quality polyurethane is estimated to be about 3,500 to 4,000 crore.

Kunal Tokas: Okay, and it is gaining share over other technologies, right?

Mr. Apoorv Agarwal: Yes, absolutely.

Kunal Tokas: Okay. Thank you.

Finportal: I request the participants to raise their hand for queries. Dear participants, if you have any more questions, please raise your hand for asking the queries. Sir, I think there are no other queries or questions in the queue, so, I would like to give you closing remarks.

Mr. Apoorv Agarwal: Thank you everyone for joining us today and for your continued support and interest in our company. Our performance in Q2 underscores the strength of our strategy. Balancing growth with profitability, investing in innovation, and deepening our relationships with customer and partners. We are particularly proud of our progress in luxury wood coatings arena, which position us well for sustainable growth in

the quarters ahead. Looking forward, we remain confident in our trajectory for second half of the year. Our priorities are clear, continue driving operational excellence, maintaining financial prudence, and delivering meaningful value to our shareholders. Thank you.

Finportal: Thank you so much, everyone, for joining. If you have any doubts that are still pending, you can drop us an email anytime, and we would be happy to revert to those. Thank you so much, you can disconnect now.