Carysil Limited

Management Participants

  • Mr. Chirag Parekh – Chairman and Managing Director
  • Mr. Anand Sharma – Executive Director and Group Chief Financial Officer

Q2 FY27 Financial Performance (Consolidated)

  • Revenue from operations: ₹275.7 crores, increased by 14.6% Year-on-Year (YoY) and 5.2% Quarter-on-Quarter (QoQ)
  • Total income: ₹278 crores, up by 13.9% YoY
  • Gross profit: ₹149.7 crores, increased by 16.8% YoY
  • Gross margin: 53.9%, improved by 133 basis points YoY
  • EBITDA: ₹54.1 crores, grew by 9.3% YoY
  • EBITDA margin: 19.4% (Q2 FY26: 20.3%; Q1 FY27: 21.2%)
  • Profit before tax (PBT): Increased by 10.3% YoY
  • Profit after tax (PAT): Increased by 5.8% YoY
  • EPS: ₹9.97 (Q2 FY26: ₹9.56)

The decrease in EBITDA margin was attributed to higher raw material costs and sea freight expenses.

H1 FY27 Financial Performance (Consolidated)

  • Revenue from operations: ₹537.9 crores, up by 15% YoY
  • Total income: ₹542.8 crores, up by 15.2% YoY
  • Gross profit: ₹294.9 crores, up by 19% YoY
  • Gross margin: 54.3%, improved by 174 basis points YoY
  • EBITDA: ₹110.1 crores, up by 17.6% YoY
  • EBITDA margin: 20.3%, improved by 42 basis points YoY
  • Profit before tax (PBT): ₹82.2 crores, up by 23.3% YoY
  • Profit after tax (PAT): ₹61.1 crores, up by 21.3% YoY
  • EPS: ₹21.02 (H1 FY26: ₹17.59)

Operational and Business Highlights

Product Performance (Q2 FY27):

  • Quartz Sinks: Volume grew ~10% to 217K units; contributed ~54% of revenue
  • Stainless Steel Sinks: Volume grew 8% to 47K units
  • Sinks Business (combined): Contributed 65% of revenue
  • Faucets: Volume grew 8%
  • Kitchen Appliances: Volume grew 12%
  • Surfaces: Volume grew 23%

Capacity Utilization & Expansion:

  • Granite sink plant running at 92% utilization
  • Stainless steel plant running at 91% utilization
  • Capacity additions by end-FY27:
  • Quartz sinks: 250,000 units annual capacity
  • Steel sinks: 150,000 units annual capacity
  • Faucets: Doubling capacity to 100,000 units
  • Kitchen appliances: Doubling capacity to 100,000 units

International Business:

  • Key partners: IKEA, Lowe's, Home Depot, Howdens, Hafele
  • Extended partnership with Home Depot Canada and US
  • New partnerships with Hafele in Australia, New Zealand, Thailand, and Indonesia
  • Received first order from Amazon USA
  • Carysil Products Limited (UK): Recorded highest ever half-year revenue of GBP 6.2 million
  • Surfaces business (UK): Revenue softened to GBP 5.8 million (vs. GBP 7 million last year)
  • United Granite (US): Revenue grew to $5.6 million from $5 million (~10%+ growth)

Domestic Business:

  • India business grew by 30% in H1 FY27
  • India contributed 21% of revenue vs. 19% last year
  • Expanding through galleries, brand store experience centers, B2B vertical with developers, and online platforms (Amazon, Flipkart)
  • Signed actor Mr. Bobby Deol as brand ambassador for FY27 and FY28
  • Target: Achieve ₹500 crores domestic revenue over next three years

Innovation and Outlook:

  • Preparing global launch of nanotechnology-based sinks in 2027 (starting with Europe and US)
  • This segment represents ~25% of global luxury sink revenue with ~20% higher value addition than current granite sinks
  • Maintaining FY27 guidance: 15% revenue growth with 18-20% EBITDA margin (currently at upper side)
  • Expressed strong optimism for US orders following Democratic election win, expecting "huge momentum" for both granite and stainless steel sinks

Management Commentary & Q&A Highlights

US Election Impact: Management viewed the Democratic win as positive, expecting reduced tariff threats and increased customer confidence. Noted immediate customer visits planned and increased inquiries.

Margin Pressure: Q2 margin decline attributed to raw material costs and sea freight (estimated 1.5-2% impact). Implemented 5% price increase last month, with full quarter impact expected in Q3. Expecting margin improvement as raw material and freight costs cool down.

Capacity Expansion: Additional 250,000 quartz sink capacity can be ramped up within 4 months if needed. Company has infrastructure and land for further expansion beyond FY30 targets (1.5M quartz sinks, 0.5M steel sinks).

Leadership Changes: CFO Anand Sharma resigning due to personal challenges. New CFO appointment expected soon, with candidates already shortlisted.

India Strategy: Planning to split sales leadership into e-comm, B2B, and B2C segments. Expanding team across 8-10 regions. Planning to invest ₹25-30 crores in brand store expansion. Allocating 5% of revenue for advertising/branding, funded by reducing distributor discounts.

Raw Material Inventory: Maintained 3-4 months of raw material inventory to manage price volatility, particularly for MMA/PMMA linked to crude prices.