Manoj Ceramic — Q2 FY26 earnings call

Call held 18 Nov 2025

Management summary

Manoj Ceramic reported strong H1 FY26 results with significant revenue and PAT growth, maintaining stable EBITDA margins. The company is expanding its retail and international presence, including a new Dubai display center, and has entered natural stone manufacturing. While addressing concerns about promoter holding and rising receivables, management reiterated ambitious growth targets for revenue and exports, emphasizing strategic initiatives and risk mitigation.

Highlights

  • Revenue for H1 FY26 grew by 23.38% year-on-year to ₹81.62 crores.

  • Profit After Tax (PAT) for H1 FY26 increased by 35.11% year-on-year to ₹5.53 crores.

  • EBITDA margins remained stable at 13.58% due to improved execution and cost structure.

  • Successfully launched a Dubai display center in August 2025, already contributing to customer conversions and securing a project in Burundi, Africa.

  • Entered the manufacturing space for natural stones, aiming for value chain integration and improved margins.

Concerns

  • Promoter holding is expected to decrease to nearing 54% after warrants, down from 71.67%, raising analyst concerns about conviction.

  • Trade receivables have risen, though management states 90% of ₹100 crores receivables are insured and the increase is temporary due to sub-dealer network expansion.

Key financials

  1. Revenue ₹81.62 Cr +23.4%YoY
  2. PAT ₹5.53 Cr +35.1%YoY
  3. EBITDA Margin 13.6%
  4. Gross Debt ₹60 Cr
  5. Short Term Borrowings ₹31 Cr
  6. Debt to Total Capital 30%

What they filed

Q4 FY26: revenue up 126.4%, net profit up 100.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue43 53 66 98 81 +88%120 +126%
EBITDA7 7 9 14 11 +57%13 +86%
Net profit3 3 4 7 6 +100%6 +100%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

medium confidence
  • Debt Gross ₹60 Cr
    It would be wonderful because what I see, your debt levels are around 60 CR and your market cap is 140 CR. So on a total debt to, uh, total capital, it is around 30% of total capital.

Guidance & targets

Revenue

  • Revenue CAGR Revenue · next three years · High confidence 25-30%
    Uh, so as we had committed before, we'll be in the lines of, uh, 20, 25% to 30% CAGR in the next three years, and we have been delivering our promises from the F, H1, uh, uh, FY26 results as well. So we'll be sticking to the same, uh, line of growth.

    — Dhruv Rakhasiya

Exports

  • Export Revenue Share Exports · next three years · High confidence 20%

    From 1% today

    We remain confident in our plan to grow exports from 1% currently to nearly 20% over the next three years

    — Dhruv Rakhasiya

Working Capital

  • Debtor Days Working Capital · this year · High confidence reduce by 25-30 days

    From 163 days (FY25) today

    So this year, we are targeting to get down by another 25, 30 days, is what our target is.

    — Dhruv Rakhasiya

Capital Structure

  • Promoter Holding Capital Structure · shortly · Medium confidence nearing 54%

    From 52.5% (post-allotment, pre-warrant) today

    No, it will be nearing to 54%, sir. After the warrants, the warrants are subscribed, uh, one part of it, uh, uh, will be subscribed. Very shortly, you'll have the announcement and the next part will be in early of, uh, next, uh, year's financial result. But maximum- So the- ... of the portion has been fulfilled now by which my holding will increase up to, uh, about 54%.

    — Dhruv Rakhasiya

What to watch in Q3 FY26

Promoter Holding Percentage

early next financial result
Current ~52.5% (post-allotment, pre-warrant subscription)
Target Nearing 54% (after warrants subscription)

Why it matters

Demonstrates promoter conviction and capital commitment, impacting investor confidence.

No, it will be nearing to 54%, sir. After the warrants, the warrants are subscribed, uh, one part of it, uh, uh, will be subscribed. Very shortly, you'll have the announcement and the next part will be in early of, uh, next, uh, year's financial result. But maximum- So the- ... of the portion has been fulfilled now by which my holding will increase up to, uh, about 54%.

Risks & concerns

  • Promoter holding decline

    medium

    Analyst raised concern about promoter holding decreasing from 71.67% to 52.5% post-preferential allotment. Management clarified it will be nearing 54% after warrants and committed to honor the QIP at ₹161, aspiring to increase it further.

    Analyst acknowledged

  • Political instability and currency risks in African markets

    low

    Analyst questioned how the company hedges against these risks. Management stated they deal through the India Africa Chamber of Commerce and require 100% upfront payment for projects, avoiding credit exposure.

    Analyst acknowledged

Q&A highlights

6 direct
CapEx requirements and Internal Rate of Return for manufacturing Partial
We are still under the warehousing, stocking of material at various locations. For the natural stones division that we inaugurated in the month of January 2025, uh, we recently, two months back, got into the backward integration for natural stones division only... The rest for the tiling division, for stocking, for warehousing, it, the model is still the same.

Analyst sought clarity on capital intensity for the new manufacturing venture; management clarified it's limited to natural stones and the core tiles business remains asset-light.

Asked by Pranav Mishra

Traction and revenue contribution from Dubai display center Direct
we have started to receive the customers from Africa who have been traveling to Dubai to have the look and feel of the entire, uh, product range of MCPL at Dubai. And, uh, clicking on the projects, recently we have backed up with one of the, uh, uh, project, uh, for housing colonies in Burundi, in Africa.

Provides early validation of the international expansion strategy and its potential to generate project orders.

Asked by Pranav Mishra

Reason for quarter-on-quarter fall in revenues Direct
Quarter on quarter, uh, the main peak season of, uh, our industry lies on the third and fourth, uh, quarter of the, uh, entire year. Typically speaking, the fourth quarter is always the powerful for our, for our industry. And it has been a historic, uh, data since many years.

Clarifies that the QoQ revenue fluctuation is a normal seasonal pattern for the industry, not a sign of underlying weakness.

Asked by Puneet Singh

B2B vs B2C sales mix and margins Direct
B2B contributes about, um, nearly between 80 to 85% of our total revenues, and B2C, uh, contributes about 20, 25%. Though the margin, uh, though the, uh, uh, volumes from the B2C are less, the margins are much better in B2C category.

Provides a clear breakdown of the company's revenue mix and profitability drivers, highlighting the strategic importance of increasing B2C share for margin improvement.

Asked by Puneet Singh

Insurance coverage for trade receivables Direct
So out of the 100 CR, uh, paid receivables right now, uh, how much is insured? ... all the ins- the, the, the debtors are already insured. Um, irrespective of, uh, the nature of their business... anybody, they are all insured, whoever is, comes under the billing with us.

Addresses concerns about credit risk and working capital, confirming robust insurance coverage for receivables.

Asked by Puneet Singh

Reason for increased inventory levels Direct
So inventories have been increased, uh, deliberately, uh, in the first half of the year because we anticipate, uh, better demand and sales in the, uh, upcoming year... And we got, uh, some of the good deals from factories because of the issues of, uh, export to the US and other countries, uh, recently, so we got better deals and we picked up the lots that were required.

Explains that the inventory build-up is a strategic move to capitalize on anticipated demand and favorable procurement opportunities, rather than a sign of slow sales.

Asked by Jay Shah

Decline in promoter holding and commitment to QIP Partial
No, it will be nearing to 54%, sir. After the warrants, the warrants are subscribed, uh, one part of it, uh, uh, will be subscribed. Very shortly, you'll have the announcement and the next part will be in early of, uh, next, uh, year's financial result. But maximum- So the- ... of the portion has been fulfilled now by which my holding will increase up to, uh, about 54%.

Addresses a key investor concern about promoter conviction following a reduction in holding, with management committing to an increased stake post-warrant subscription and honoring the QIP.

Asked by Rajeev Poddar

Hedging geopolitical and currency risks in African markets Direct
we have always been dealing in through the reputed channels of, uh, India Africa Chamber of Commerce... we don't work on, uh, uh, giving credits on... for the projects in Africa. We work only on getting the a hundred percent receipt and then dispatching the orders to them.

Details the company's strategy to mitigate high-risk factors in emerging markets, ensuring financial security for international projects.

Asked by Rahul Singhania

2 min read 7 chapters

Detailed narrative

H1 FY26 Performance Overview

Manoj Ceramic Limited delivered a strong performance in H1 FY26, with revenue reaching ₹81.62 crores, marking a 23.38% year-on-year growth. Profit After Tax (PAT) also saw a significant increase of 35.11% year-on-year, totaling ₹5.53 crores. The company successfully maintained stable EBITDA margins at 13.58%, attributed to improved execution across its retail and B2B institutional projects, alongside an accelerating export strategy.

Strategic Initiatives & Expansion

The company is actively expanding its market presence through strategic initiatives, including the operation of seven premium retail showrooms across Mumbai, Pune, Bangalore, and Thane. A new Upper Thane display center was recently commissioned, further enhancing customer access. Internationally, the Dubai display center, inaugurated in August 2025, has already begun contributing to customer conversions, notably securing a housing project in Burundi, Africa, demonstrating early success in global outreach.

Digital Transformation & AI Studio

MCPL is leveraging digital transformation to enhance customer engagement and operational efficiency. This includes the adoption of AI-enabled design visualization tools and an omnichannel communication system. The AI Studio, available free on their website, allows customers to visualize tile combinations in 2D and 3D models of various rooms, improving the decision-making process for both B2C and B2B clients.

Business Model & Backward Integration

While maintaining an asset-light model for its core tiles division, focused on warehousing and distribution, MCPL formally entered manufacturing for its natural stones division in January 2025. This backward integration for natural stones, which is a more stagnant industry, aims to improve quality, consistency, and export competitiveness. The company plans to consider backward integration for the tiles division only when the industry stabilizes and new technology adoption slows.

Sales Mix, Margins, and Receivables Management

The company's revenue mix is predominantly B2B, contributing 80-85% of total revenues with margins of 20-25%. The B2C segment accounts for 20-25% of revenues but offers significantly higher margins, exceeding 35-40%, prompting a strategic push to increase B2C share. To manage credit risk, 90% of the company's ₹100 crores receivables are insured, and efforts are underway to reduce debtor days by 25-30 from FY25's 163 days.

Export Strategy and African Market Focus

Exports, currently representing 1% of total revenue, are a key long-term value driver, with a target to grow to nearly 20% over the next three years. MCPL is strategically positioned to benefit from rising demand in Africa and the Middle East, actively pursuing opportunities through agents and exhibitions. To mitigate geopolitical and currency risks in African markets, the company operates through the India Africa Chamber of Commerce and requires 100% upfront payment for projects.

Promoter Holding and Capital Commitment

Following a preferential allotment, promoter holding is expected to be nearing 54% after the subscription of warrants at ₹161 per share. Management reiterated its commitment to honor the QIP and expressed an aspiration to increase promoter holding further, beyond the previous 71% level, to instill greater investor confidence. The company's debt levels are around ₹60 crores, with short-term borrowings at ₹31 crores, representing approximately 30% of total capital.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Consumer Durables earnings calls