Sirca Paints India Limited submits Sirca Industries strike-off

Sirca Paints India Limited submitted e-Form STK-2 to the Registrar of Companies on October 24, 2026, following board approval on September 30, 2026 to strike off wholly owned subsidiary Sirca Industries Limited. The filing was made under Section 248(2) of the Companies Act, 2013, but the announcement does not report that the strike-off has been completed.

What did Sirca Paints approve for Sirca Industries?

Sirca Paints approved a proposal to strike off the name of Sirca Industries at its board meeting on September 30, 2026. The financial-results note identifies Sirca Industries as a wholly owned subsidiary, making the action a proposed closure of an entity within the group.

The proposal was disclosed in notes accompanying Sirca Paints’ unaudited standalone results for the quarter and half year ended September 30, 2026. The board approved those financial results on November 6, 2026, while Rajesh Kukreja & Associates issued its limited review report on the same date.

Sirca Paints did not disclose a rationale for the proposed strike-off, a cost of closure, an expected accounting impact or a target completion date. The filing also does not state whether Sirca Industries has assets, liabilities, revenue or employees, so the operational scale of the subsidiary cannot be determined from the announcement.

When did Sirca Paints submit e-Form STK-2?

Sirca Paints submitted e-Form STK-2 with the Registrar of Companies on October 24, 2026, 24 days after the September 30, 2026 board approval. The company said the application was filed under Section 248(2) of the Companies Act, 2013.

The reported action is an application rather than confirmation of a completed deregistration. Sirca Paints has not disclosed a decision by the Registrar of Companies, a date for removal of Sirca Industries’ name, or any conditions related to the application.

The standalone balance sheet lists investments in subsidiaries of Rs 10 lakh at September 30, 2026, unchanged from March 31, 2026. Sirca Paints does not state whether that carrying amount relates solely to Sirca Industries or how a completed strike-off would affect the investment line.

How did Sirca Paints perform in the September 2026 quarter?

Sirca Paints reported standalone revenue from operations of Rs 160.1985 crore for the quarter ended September 30, 2026, compared with Rs 131.1708 crore in the quarter ended September 30, 2025. Profit after tax increased to Rs 20.325 crore from Rs 18.0998 crore, and profit before tax rose to Rs 26.6034 crore from Rs 24.4666 crore.

Total expenses reached Rs 134.7896 crore in the September 2026 quarter, compared with Rs 107.745 crore a year earlier. Cost of material consumed rose to Rs 85.3353 crore from Rs 55.1232 crore, while purchases of stock-in-trade fell to Rs 5.016 crore from Rs 14.076 crore.

Employee-benefit expense increased to Rs 14.7176 crore from Rs 12.3957 crore, whereas finance costs declined to Rs 96.40 lakh from Rs 135.67 lakh. Basic earnings per share, not annualised, was Rs 3.58 for the September 2026 quarter, compared with Rs 3.24 in the corresponding 2025 quarter.

For the April-September 2026 half year, Sirca Paints recorded revenue from operations of Rs 290.2038 crore, against Rs 245.4065 crore in April-September 2025. Half-year profit after tax was Rs 36.5308 crore, compared with Rs 32.3061 crore a year earlier; the company reports one operating segment, manufacturing and repackaging of wood coatings.

What does Sirca Paints’ balance sheet show?

Sirca Paints reported standalone total assets of Rs 632.351 crore as at September 30, 2026, up from Rs 589.0344 crore at March 31, 2026. Total equity was Rs 499.87 crore, consisting of paid-up equity share capital of Rs 56.7928 crore and other equity of Rs 443.0772 crore.

Current assets increased to Rs 423.4447 crore at September 30 from Rs 387.3917 crore at March 31. Trade receivables rose to Rs 195.4416 crore from Rs 155.2487 crore, while cash and cash equivalents increased to Rs 86.9514 crore from Rs 56.7832 crore.

Current investments moved in the opposite direction, falling to Rs 12 crore at September 30, 2026 from Rs 50.0495 crore at March 31, 2026. Non-current liabilities were Rs 39.7905 crore, compared with Rs 39.4508 crore six months earlier, while current liabilities were Rs 92.6904 crore.

Current borrowings decreased to Rs 3.2143 crore from Rs 6.4286 crore over the same period. Trade payables to micro and small enterprises increased to Rs 34.6403 crore from Rs 21.413 crore, while trade payables other than to micro and small enterprises rose to Rs 36.33 crore from Rs 32.4724 crore.

How did Sirca Paints’ cash flow change in the first half?

Sirca Paints generated net cash from operating activities of Rs 14.14 crore in April-September 2026, compared with Rs 9.2858 crore in April-September 2025. Profit before tax increased to Rs 48.7416 crore from Rs 43.6569 crore, although the cash-flow statement recorded a Rs 19.1929 crore movement in trade receivables.

Net cash used in financing activities was Rs 17.1667 crore in April-September 2026, compared with net cash generated of Rs 53.9277 crore in the prior-year period. The 2025 period included Rs 69.2694 crore in net proceeds from issue of equity shares, while no such proceeds are shown in the latest half-year statement.

Dividend payments used Rs 11.3586 crore of cash in April-September 2026, compared with Rs 8.2213 crore a year earlier. Net repayment of borrowings was Rs 3.8582 crore in the latest half year, while interest and other finance costs paid were Rs 1.95 crore.

Investing activities generated net cash of Rs 33.195 crore in April-September 2026, versus net cash used of Rs 52.81 crore in April-September 2025. Investments and securities generated Rs 38.293 crore in the latest period, and the combined operating, investing and financing flows increased cash and cash equivalents by Rs 30.1683 crore to Rs 86.9515 crore at September 30, 2026.

Conclusion

Sirca Paints has taken the documented statutory steps of board approval and submission of e-Form STK-2 toward striking off Sirca Industries. The announcement does not establish that the subsidiary has been struck off or quantify any financial effect, while the accompanying standalone results show higher revenue and profit for both the September quarter and first half.

The next disclosed matter to watch is an outcome from the Registrar of Companies on the October 24, 2026 application, because Sirca Paints has provided neither a timetable nor a decision. Subsequent standalone balance sheets may also show whether the Rs 10 lakh investments-in-subsidiaries balance changes following the proposed action.