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    CARYSIL LIMITED

    CARYSIL
    Consumer Durables·11 Nov 2025
    Management Summary

    Carysil delivered a strong Q2 FY26, with consolidated revenue growing 17.9% YoY to INR244 crores and PAT surging 61.9% YoY to INR27.2 crores. This performance was driven by robust volume growth in Quartz Sinks and Appliances, despite global economic volatility and U.S. tariffs. The company is actively expanding capacity across all key segments and strengthening its India business, while maintaining healthy EBITDA margins.

    Highlights

    5

    • Consolidated total income for Q2 FY26 reached INR244 crores, marking a 17.9% YoY growth from INR207 crores in Q2 FY25.

    • EBITDA for Q2 FY26 stood at INR49.5 crores, a 33.5% YoY increase from INR37.1 crores in Q2 FY25, with EBITDA margins at 20.3%.

    • Profit after tax (PAT) for Q2 FY26 grew significantly by 61.9% YoY to INR27.2 crores from INR16.8 crores in Q2 FY25.

    • The Quartz Sinks segment demonstrated robust volume growth, reaching 197K units in Q2 FY26, up from 159K units in Q2 FY25, driven by improved capacity utilization of 88%.

    • The Appliances division recorded healthy YoY growth of 25.5% in value and 30.5% in volume for Q2 FY26, indicating strong domestic demand.

    Concerns

    3

    • The global economy is experiencing volatility due to ongoing tariff wars, impacting major export markets like the U.S. with a 50% tariff.

    • Capacity bottlenecks, particularly for molds in the Quartz Sinks division, led to pending orders for Karran (approx. 10,000 pieces).

    • The U.K. subsidiary's revenue has seen degrowth (8% for Carysil products, 12% for Carysil Surfaces) due to the slowing U.K. economy.

    What Changed2

    vs Q3 FY26

    Guidance items7 → 12 (+5)Risks discussed2 → 3 (+1)
    Key financials

    Metrics

    8

    Periods

    2

    Q2

    4
    • Total Income
      ₹244 Cr
      YoY+17.9%QoQ+7.4%
    • EBITDA
      ₹49.5 Cr
      YoY+33.5%QoQ+12.1%
    • EBITDA Margin
      20.3%
    • PAT
      ₹27.2 Cr
      YoY+61.9%QoQ+19.1%

    H1

    4
    • Total Income
      ₹471.3 Cr
      YoY+15.2%
    • EBITDA
      ₹93.6 Cr
      YoY+26.3%
    • EBITDA Margin
      19.9%
    • PAT
      ₹50 Cr
      YoY+53.2%

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Gross ₹230.9 crores

    Liquidity

    Cash ₹42.3 crores

    Guidance & targets

    12
    CategoryTargetPriority
    Capacity
    Quartz Sink Capacity Expansion
    100,000 units
    		High
    Capacity
    Quartz Sink Capacity Expansion (further)
    150,000 units
    		Medium
    Capacity
    Stainless Steel Sink Capacity Expansion
    70,000 units extra
    		High
    Capacity
    Total Stainless Steel Sink Capacity
    250,000 units
    		High
    Capacity
    Stainless Steel Sink Capacity Expansion (further)
    150,000 units
    		Medium
    Capacity
    Appliances Manufacturing Capacity
    150,000 units per year
    		High
    Capacity
    Faucet Installed Capacity Utilization
    100,000 units per annum
    		High
    Revenue
    India Business Revenue
    INR500 crores
    		Medium
    Revenue Growth
    Annual Growth Rate
    15%
    		High
    Revenue Growth
    Hard Surfaces Revenue (UK)
    double revenue
    		Medium
    Profitability
    EBITDA Margin
    18-20%
    		High
    Revenue Mix
    Sinks and Faucets vs Built-in Appliances
    70% sinks and faucets, 30% built-in appliances
    		Medium

    Quartz Sink Capacity Expansion

    next quarter
    Current100,000 units being added
    TargetOperational by Dec 2025

    Why it matters

    This expansion is crucial for meeting strong demand from global customers like IKEA and Lowe's and improving throughput.

    Given the strong demand visibility, we are immediately adding capacity of 100,000 units of quartz sink within our current existing facility with a small capex of INR5 crores. This expansion is expected to be operational by end of December this, '25.

    How to verify

    capital_allocation.capex.purposes[description='Quartz sink capacity expansion (100,000 units)']

    Risks & concerns

    3
    RiskSeverity

    Global economic volatility and tariff wars

    Ongoing tariff war, particularly the 50% tariff on US exports, creates volatility and uncertainty in key markets. — Management acknowledged

    medium

    Capacity bottlenecks

    Current mold capacity for Quartz Sinks is a bottleneck, leading to pending orders for key customers like Karran/Lowe's. — Management acknowledged

    medium

    Slowing UK economy impacting subsidiary revenue

    UK subsidiary revenues are seeing degrowth (8-12%) due to the broader economic slowdown in the region. — Management acknowledged

    medium

    Q&A highlights

    7

    “Yes. So, you're talking about the pending order, which we're not able to supply? so I think it is about 10% of the total Karran value. It could be about, say, 10,000 pieces approximately because we are suffering from the mold capacity. So just 2 weeks back, we ordered 3 new additional mold for Lowe's.”

    Analyst sought quantification of pending orders, revealing a specific bottleneck in mold capacity impacting a key customer (Lowe's/Karran) and prompting immediate investment.

    asked by Vaidik Bafna

    3 min read6 chapters

    Detailed Narrative

    01

    Q2 & H1 FY26 Consolidated Financial Performance

    Carysil reported a strong Q2 FY26 with consolidated total income reaching INR244 crores, an increase of 17.9% year-on-year. EBITDA grew by 33.5% to INR49.5 crores, maintaining a healthy margin of 20.3%. Profit after tax (PAT) saw a significant surge of 61.9% year-on-year, amounting to INR27.2 crores. For the first half of FY26, total income stood at INR471.3 crores (up 15.2% YoY), with EBITDA at INR93.6 crores (up 26.3% YoY) and PAT at INR50 crores (up 53.2% YoY).

    02

    Quartz Sinks Segment Growth and Capacity Expansion

    The Quartz Sinks segment continues to be a strong growth engine, with Q2 FY26 volumes reaching 197K units, a 23.9% increase from 159K units in Q2 FY25. Capacity utilization improved to 88% in Q2 FY26 and 82% in H1 FY26. To meet strong demand, especially from global customers like IKEA and Lowe's, Carysil is adding 100,000 units of quartz sink capacity with a INR5 crore capex, expected to be operational by December 2025. Further expansion of 150,000 units is planned within 4-6 months, bringing total capacity to 250,000 units.

    03

    Stainless Steel Sinks Segment Development

    The Stainless-Steel Sink division saw a 7.6% year-on-year volume growth in Q2 FY26, reaching 43,400 units. Utilization levels are high at 95%. The company is expanding manufacturing capacity by 70,000 units by March FY26, aiming for a total capacity of 250,000 units by the end of Q4 FY26. An additional 150,000 units are planned for FY26-27. Carysil also acquired 7,400 square meters of adjacent land for INR6 crores to support future growth and strengthen its manufacturing ecosystem for high-value-added, handmade sinks.

    04

    Appliances and Faucets Division Initiatives

    The Appliances division demonstrated robust growth in Q2 FY26, with value increasing by 25.5% and volume by 30.5% year-on-year, driven by rising adoption of built-in appliances. Carysil is investing INR25 crores to establish a modern manufacturing and assembly facility, including an in-house glass processing plant, expected to be operational by Q2 FY27 with a capacity of 150,000 units per year. The Faucet division is operating at 75% capacity utilization (37,500 units) and plans to activate its full installed capacity of 100,000 units per annum in the coming financial year, with new assembly lines for bathroom faucets also being added.

    05

    Global Strategy and Market Trends

    Carysil is capitalizing on structural shifts towards premium, design-oriented kitchen solutions in mature markets (Europe, North America) and fast-growing regions (Middle East, Southeast Asia, Africa). The company's U.S. subsidiary turned profitable in Q2 FY26. Despite a 50% tariff impact🌐ing direct US exports (12-13% of consolidated revenue), Carysil maintains its 18-20% EBITDA margin guidance. The company is also diversifying its UK Surfaces business into harder surfaces (quartz, marble, stones) with a goal to double revenue in 3-5 years.

    06

    India Business Expansion and Leadership

    Carysil is highly optimistic about its India growth, aiming for INR500 crores in revenue. The company is onboarding a new leadership team, including a Vice President for Sales in the Bathroom division, to accelerate B2B penetration and brand visibility. Expansion plans include adding new distribution dealers, showrooms, and experience centers in key regions like NCR, Telangana, and Andhra Pradesh, alongside strengthening its online presence with a new dedicated team.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.