Carysil Q4 FY26 PAT Surges 42% YoY

Q4 FY26 Performance:

Consolidated total income stood at ₹237 crores compared to ₹205 crores in Q4 FY25, registering 16% growth
EBITDA for the quarter stood at ₹48 crores compared to ₹36 crores in Q4 FY25, reflecting 33% growth
EBITDA margin improved to 20.3%, up by 277 basis points year-on-year
Profit after tax and minority interest stood at ₹27 crores compared to ₹19 crores in Q4 FY25, growth of 42%
Quarterly sales volumes: Quartz Sinks 195.5K units, Stainless Steel Sinks 44.6K units, Kitchen Appliances & Others 8.5K units, Faucets 10.2K units

FY26 Full Year Performance:

Consolidated total income stood at ₹932 crores compared to ₹820 crores in FY25, delivering 14% growth
EBITDA stood at ₹185 crores compared to ₹142 crores in FY25, reflecting 30% growth
EBITDA margin improved to 19.9% from 17.3% previous year
Profit after tax and minority interest stood at ₹98 crores compared to ₹64 crores in FY25, registering 53% growth
Improvement driven by operating leverage, improved product mix, higher contribution from value-added products, and operational efficiency

Gross debt stood at ₹270 crores as on March 31, 2026
Cash and bank balance stood at ₹59 crores
Total capex of ₹68 crores incurred during FY26 towards plant and machinery, capacity enhancement, automation initiatives, and infrastructure-led investment

Quartz Sink Business:

Delivered healthy performance in FY26 with volumes growing approximately 21%
Continued investments in mold development, automation, and product innovation
Capacity expansion of 250,000 Quartz sinks expected to become operational in Q4 FY27
Current quartz sink capacity: 1,000,000 units, expanding to 1,250,000 units

Stainless Steel Sink Business:

Emerged as key growth driver with value growing approximately 20%
Supported by strong OEM demand and exports
Subsidiary Carysilnox Limited commenced additional manufacturing capacity of 70,000 units per annum effective May 21, 2026
Total annual capacity increased from 180,000 units to 250,000 units per year
Acquired adjacent land for future expansion and diversification to meet demands of OEM players like Kohler, Hafele, GROHE

Built-in Appliances Business:

Gaining traction from premiumization trends, import substitution opportunities, and rising modular kitchen penetration
Breakthrough with electronic modern trade retail chains
Phase I: Commenced pilot manufacturing of hoods and hobs
Phase II: Plan to expand into hobs and ovens, food waste disposal, and other built-in solutions
Planning investments in sophisticated manufacturing technologies including glass cutting, forming, color coating
Current pilot capacity: 50,000 hoods
Future capacity plan: 100,000 units in total (50,000 + 50,000 phases), with first 50,000 units expected in FY28
Total infrastructure cost for appliances expansion: ₹30-40 crores for building and assembly line

Faucet Business:

Commenced manufacturing of stainless steel kitchen faucets and brass faucets with powder coating color solutions
Portfolio aligned with export standards across Europe, U.S. and other countries
Launched water RO solution with vision of "Every Indian should drink from Carysil faucet"
Current faucet capacity: 50,000 units

International Markets:

Export demand visibility improved steadily during FY26 across key international markets
Focus markets: U.S., Europe, Middle East, Far East, Germany
Hired new business development manager based in Germany to develop new customers
Middle East business performing well despite geopolitical situations
Expanding branded stores across Gulf region with second store opening in UAE coming shortly
Strengthening presence in Europe, Southeast Asia, Australia, and Asia Pacific markets through distributors and strategic partnerships

International Subsidiaries Performance:

Carysil Corporation USA achieved operational breakeven during FY26 by improving scale and stronger customer traction
UAE-based FZ LLC continued strong performance with healthy demand and expanding Middle East presence

India Business Strategy:

India business delivered healthy growth supported by improving retail demand, OEM traction, new product launches, and deeper market penetration
Domestic revenue: Approximately ₹175 crores in FY26 (≈19% of total revenue)
5-year target: Achieve ₹500 crores sales in India within 5 years, requiring 30-40% year-on-year growth
Launched dedicated B2B vertical targeting top architects and builder institutions
Strengthened digital e-commerce with Carysil-led brand called Carissa for B2C model
Online business contributed approximately ₹5 crores during FY26
Secured partnership with largest e-commerce marketplace in India, expecting 2x-3x growth in e-com sales
Marketing development expense benchmarked at 10% of sales

Maintained stability and uninterrupted operations across all facilities despite industry-wide inflationary pressures across gas, electricity, and raw materials
Stable labor availability supported by deep employee community engagement
Effective pass-through of cost increases resulting in healthy margin expansion
Increasing automation, operating leverage, and growing contribution from higher-value categories supporting profitability
Growing business with marquee global customers including Lowe's, IKEA, Home Depot, and other leading international retail partners

MMA (raw material) prices increased by approximately 30-35% during the quarter, with 25-30% increase in last 2 months
Company has been able to mostly pass on cost increases to customers
Faced freight disruptions and delays in container availability affecting export shipments
Gas supply was unavailable for a few weeks but now 100% operational

FY27 Guidance:

Growth Drivers:

Multiple growth engines across exports, India market, distribution, OEM partnerships, new products, and new channels
Next phase focused on structurally stronger and more diversified growth
FY27 expected to be crucial year of execution, capacity expansion, and capability building
Long-term aspiration of building a $1 billion kitchen business

Market Specifics:

U.K. market has bottomed out despite challenges, company gaining market share from European competitors
Europe market showing recovery signs with good traction of orders, taking market share from weakened competition
Company not manufacturing in U.K. - only solid surfaces, most products exported from India to U.K.

Financial Clarifications:

Q4 FY26 included forex gain of ₹2.5 crores (≈0.5% margin impact)
Rupee depreciation of 5-6% provided sales gain
India business gross margins better than exports in some product categories due to value-added products
Net profit margins lower in India due to higher marketing costs during launch phase
Kitchen appliances and faucets expected to have 50-60% gross margins, potentially reaching 60% with new products

Capacity Utilization:

New stainless steel capacity expected to mature within 90 days
Quartz capacity expansion expected to be utilized within 1 year, possibly within 6 months if business traction continues
Surface business targeting 10% growth, expecting to achieve 7-8%