Carysil

Carysil delivered a robust financial performance in Q4 and FY25. For the full fiscal year 2025, total income grew by 19.1% year-on-year to Rs. 819.9 crores, with EBITDA reaching Rs. 141.7 crores (up 6.1% YoY) and PAT at Rs. 63.7 crores (up 10.1% YoY). Q4 FY25 saw total income at Rs. 205.1 crores, a 6.8% YoY increase, and PAT growing 19.6% to Rs. 18.6 crores, reflecting strong underlying business momentum. The company's gross debt stood at Rs. 265.5 crores as of March 31, 2025, with a debt-to-equity ratio of less than 0.5.

The quartz sink segment demonstrated strong growth, with sales volume reaching 645,000 units in FY25, growing at a 12% CAGR over three years. A significant deal was secured with a US major retail chain (KARRAN) to supply 150,000 quartz sinks annually across 1800+ stores. Additionally, Carysil was awarded the RFQ for IKEA's global tender, which could increase its supply to IKEA by 3x, translating to 180,000-200,000 units, and is expected to finalize within 60 days. To support this demand, the company plans to increase quartz sink capacity utilization from 67% to 85-90% within the next 3-4 months, including restarting its Plant-4 with 250,000 units capacity.

The stainless-steel sink segment also experienced strong growth, with volumes scaling up to 155,000 units in FY25, representing a 20% CAGR over three years. The company is investing Rs. 7-10 crores in CAPEX to expand its Stainless-Steel capacity by an additional 70,000 units, targeting a total capacity of 250,000 units, expected to be operational by Q3 FY26. This expansion is driven by robust demand and new breakthroughs with partners like Kohler India and Hafele, alongside new supplies to global IKEA.

Carysil is rapidly expanding its Appliances and Faucets categories. Faucets assembly is targeted to reach 100,000 units by year-end from the current 30,000-35,000 units. The company plans to lay the foundation stone for a new factory for built-in Appliances (hoods, hobs, ovens) to achieve 100,000 units annually, aiming for self-reliance and improved cost efficiencies. A new facility for surfaces and countertops is also planned to be operational within 150-180 days, by the end of Q3 this year.

The UK and UAE subsidiaries continued strong performance, with UAE's Appliances category seeing robust demand and a new 3,000 sq ft showroom in Sharjah. The US subsidiary, United Granite LLC, which faced challenges, has started turning around by focusing on high-value granites and is expected to achieve profitability in FY26, moving from negative 8-10% to 2-3% profit. The UK business, boosted by the Howdens deal (80,000-100,000 sinks annually), is actively adding new customers and expanding product ranges.

In India, Carysil is aggressively expanding its reach, growing its dealer network from 1,500 to 4,000 and targeting 200 galleries by fiscal year-end (from 140). The company aims for 25-30% domestic revenue growth to Rs. 170-180 crores in FY26, with mid-term targets of Rs. 300 crores and long-term targets of Rs. 500 crores. The focus is on the premium market segment across all categories, with 80% B2C and 20-25% B2B sales, supported by digital marketing and new experience centers.

Despite a marginal impact on FY25 EBITDA margin (17.3%) due to higher MMA prices, increased export freight costs, and marketing spend, management noted that these costs are now cooling off. The company is committed to maintaining an 18-20% EBITDA margin for FY26 through operational cost reductions, innovation, and value-added products from new deals. Working capital days increased to 87 days due to strategic inventory build-up for BIS implementation but are expected to normalize in upcoming quarters, leading to lower working capital going forward^⏳.