Sirca Paints receivables rise Rs 40.19 crore in six months

Sirca Paints India Limited reported trade receivables of Rs 195.44 crore at September 30, 2026, an increase of Rs 40.19 crore from March 31, 2026, while net cash from operating activities rose to Rs 14.14 crore for April-September 2026 from Rs 9.29 crore a year earlier. The figures are from its unaudited standalone results.

Why did Sirca Paints’ receivables increase by Rs 40.19 crore?

Sirca Paints’ trade receivables rose to Rs 195.44 crore at September 30, 2026 from Rs 155.25 crore at March 31, 2026, increasing the amount due from customers by Rs 40.19 crore over six months. Inventories also increased by Rs 3.41 crore to Rs 114.01 crore, while current assets rose by Rs 36.05 crore to Rs 423.44 crore.

The cash-flow statement records a different measure because it captures the working-capital effect during April-September. Trade receivables used Rs 19.19 crore of cash in the latest half-year, compared with a Rs 44.44 crore use in April-September 2025. Receivables therefore continued to absorb cash, but the cash outflow was Rs 25.25 crore lower than in the prior-year period.

The increase in current assets was smaller than the receivables rise because current investments fell to Rs 12.00 crore from Rs 50.05 crore. Cash and cash equivalents increased by Rs 30.17 crore, and other current assets declined by Rs 0.30 crore to Rs 11.20 crore at September 30, 2026.

How did Sirca Paints’ operating cash flow improve despite higher dues?

Sirca Paints generated Rs 14.14 crore of net cash from operating activities in April-September 2026, up from Rs 9.29 crore in April-September 2025. Cash generated from operations before direct taxes increased to Rs 25.67 crore from Rs 19.36 crore, while direct taxes paid rose to Rs 11.53 crore from Rs 10.08 crore.

Operating profit before working-capital changes was Rs 51.53 crore, compared with Rs 50.36 crore a year earlier. This Rs 1.17 crore increase was accompanied by a lower receivables cash outflow and by trade payables contributing Rs 17.08 crore of cash, compared with a Rs 4.86 crore contribution in the prior-year half.

Inventories used Rs 3.20 crore of cash during April-September 2026, whereas they generated Rs 0.48 crore in the corresponding 2025 period. Financial assets and other current or non-current assets also used Rs 1.99 crore, compared with a Rs 6.67 crore cash contribution a year earlier. These outflows were offset in part by payables and by Rs 3.67 crore from other financial and current or non-current liabilities.

What changed in Sirca Paints’ sales and profit in the half year?

Sirca Paints reported revenue from operations of Rs 290.20 crore for the half year ended September 30, 2026, up from Rs 245.41 crore in the corresponding 2025 half-year. Profit after tax increased to Rs 36.53 crore from Rs 32.31 crore, while profit before tax rose to Rs 48.74 crore from Rs 43.66 crore; neither period included exceptional items.

The September 2026 quarter generated Rs 160.20 crore of revenue, compared with Rs 130.01 crore in the June 2026 quarter and Rs 131.17 crore in the September 2025 quarter. September-quarter profit after tax was Rs 20.33 crore, compared with Rs 16.21 crore in the preceding quarter and Rs 18.10 crore a year earlier.

Material consumed rose to Rs 144.04 crore in the latest half-year from Rs 96.74 crore a year earlier, while employee-benefit expense increased to Rs 29.50 crore from Rs 24.94 crore. Finance costs declined to Rs 1.95 crore from Rs 2.64 crore, and depreciation and amortisation increased to Rs 5.48 crore from Rs 5.09 crore. Basic earnings per share, not annualised, were Rs 6.43 versus Rs 5.78.

What else changed in Sirca Paints’ funding and corporate structure?

Sirca Paints’ cash and cash equivalents increased to Rs 86.95 crore at September 30, 2026 from Rs 56.78 crore at April 1, 2026. The cash-flow statement reported Rs 33.20 crore of net cash from investing activities, Rs 14.14 crore from operating activities and a Rs 17.17 crore financing outflow, resulting in a Rs 30.17 crore net increase in cash.

Current borrowings fell to Rs 3.21 crore at September 30 from Rs 6.43 crore at March 31, while non-current borrowings declined to Rs 25.25 crore from Rs 25.89 crore. Trade payables to micro, small and medium enterprises rose to Rs 34.64 crore from Rs 21.41 crore, and non-MSME trade payables increased to Rs 36.33 crore from Rs 32.47 crore.

Sirca Paints disclosed that its board approved a proposal on September 30, 2026 to strike off its wholly owned subsidiary, Sirca Industries Limited. It filed e-Form STK-2 with the Registrar of Companies on October 24, 2026 under Section 248(2) of the Companies Act, 2013. The standalone results were approved on November 6, 2026 and underwent a limited review.

Conclusion

Sirca Paints combined higher half-year revenue and profit with a Rs 14.14 crore operating cash inflow, even as customer dues rose by Rs 40.19 crore on the balance sheet. The year-on-year reduction in the receivables cash outflow and the larger cash contribution from trade payables helped operating cash generation exceed the Rs 9.29 crore recorded in April-September 2025.

The disclosed next corporate matter is the proposed striking-off of Sirca Industries Limited following the October 24, 2026 filing. In subsequent results, the reported direction of trade receivables from the Rs 195.44 crore September 30 balance, together with operating cash flow and trade payables, will show how working-capital movements develop.