Key Financial Highlights

Q4 FY26 Performance (Quarter ended March 31, 2026)

  • Volume Growth: 7% year-on-year
  • Revenue Growth: 7.5% year-on-year
  • EBITDA: INR 16.4 crores, representing a 66% year-on-year increase
  • EBITDA Margin: Expanded by 270 basis points
  • PBT (Profit Before Tax): INR 8.4 crores, compared to INR 3.6 crores in Q4 FY25

Full Year FY26 Performance (Year ended March 31, 2026)

  • Volume Growth: 4.4% year-on-year
  • Revenue Growth: 3.1% year-on-year
  • EBITDA: INR 42.5 crores, reflecting a 38% year-on-year increase
  • EBITDA Margin: Expanded by 160 basis points
  • PBT (Profit Before Tax): INR 16.4 crores, compared to INR 3.8 crores in FY25
  • Exceptional Item: Absorbed one-time cost of INR 1.3 crores towards complying with the new labor code

Operational and Strategic Updates

Capacity Utilization

  • Current utilization levels at 60-65% across manufacturing facilities
  • Vitrified tile capacity utilization estimated at approximately 80%
  • Adequate available capacity to support future growth without significant incremental capex

Digital Initiatives

  • Technology and digital initiatives remain key differentiators
  • AI-enabled room visualization tools used by dealers adding 50,000 new designs monthly
  • Online lead-generation initiative contributing to sales for 350+ dealers monthly
  • Website among the most popular in the industry

Market Position

  • Pure-play branded tiles company with manufacturing facilities spread across India
  • Comparatively low dependence on Morbi cluster
  • Well positioned to benefit from structural changes driven by U.S.-Iran war impacting industry

Price Action and Cost Management

Price Increases

  • Implemented cumulative price increases of approximately 20% during March and April 2026
  • Initial 15-16% increase taken in March, followed by 5-6% increase in April
  • First company to start taking price increases around 10th March
  • All cost increases passed through to consumers

Gas Price Impact

  • Experienced approximately 30% overall increase in gas prices
  • Q4 blended gas price averaged approximately INR 45 per SCM
  • Gas pricing formula linked and volatile (changed from 80% to 55% normal rate + 45% spot rate)
  • June pricing indicated to be INR 5 per cubic meter higher than May

Financial Position and Capital Allocation

Balance Sheet Strength

  • Company remains debt-free
  • Negative net debt of INR 29 crores due to surplus cash and liquid investments
  • Strong cash position provides significant flexibility for future growth opportunities

Working Capital Management

  • DSO (Days Sales Outstanding) reduced by 9 days to 48 days
  • Cash conversion cycle improved to 20 days from 26 days last year
  • Continued focus on cash flow and working capital discipline

Capital Expenditure

  • FY26 capex approximately INR 6-7 crores
  • FY27 maintenance capex expected in the range of INR 10 crores (± INR 4-5 crores)
  • No additional capacity capex required for FY27

Business Segments and Market Trends

Sales Mix

  • Retail segment contribution: 78% of total revenue
  • Institutional/enterprise business: 22% of total revenue
  • Retail segment grew much better than enterprise business in FY26

Product Initiatives

  • Anti-static tiles: Receiving some orders but contribution still very small
  • Antimicrobial tiles: Minimal contribution to overall revenue
  • Adhesives business: Available in select geographies (North and East India)
  • New product additions: Epoxy, grouts, spatula added in recent months

Marketing Spend

  • FY26 marketing spend: 3.6% of revenue
  • Directionally expected to increase toward 4% in future periods

Industry Outlook and Challenges

Morbi Cluster Impact

  • 500+ units reopened in Morbi from 1st May onwards
  • Most GVT units have opened, fewer ceramic units operational
  • Units struggling with labor availability for polishing and packing operations
  • Stocks at dealer level in Morbi have run down significantly

Demand Environment

  • Dealers have turned cautious due to working capital squeeze from 20% price increases
  • Large projects in wait-and-watch mode through April
  • Long-term industry tailwinds favorable supported by housing demand, government infrastructure spending, and renovation demand
  • Short-term uncertainty around gas pricing and availability

Competitive Landscape

  • Unorganized sector struggled in FY26 with flat exports
  • Price erosion occurred for first 11 months of the year before recent increases
  • Organized players with strong balance sheets better positioned to manage volatility

Management Commentary

The strategic initiatives undertaken over the last few years across the value chain have started delivering meaningful differentiation and operational efficiencies, creating a strong foundation for sustainable and profitable growth going forward. The company is optimistic about FY27 performance compared to FY26, though no specific numerical guidance was provided.