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Manoj Ceramic Limited — Q4 FY26 earnings call

Call held 1 Jun 2026

Company page: Manoj Ceramic share price, financials & guidance record

Management summary

Manoj Ceramic reported robust revenue growth of 23.4% for FY26, reaching ₹202.99 crores, alongside significant balance sheet improvements through debt reduction and enhanced working capital efficiency. However, profitability was challenged in H2 FY26, with EBITDA margins contracting to 11% due to a strategic decision to introduce lower-margin products for volume growth, and PAT growth lagging revenue. The company continues to focus on premiumization, digital engagement, and export expansion.

Highlights

  • Total income for FY26 grew by 23.4% year-on-year to ₹202.99 crores, driven by retail, dealer, and project channels.

  • Debtors improved significantly from 163 days to 114 days, indicating better collection efficiency.

  • Long-term borrowings were nearly halved, reducing from ₹28.98 crores to ₹13.89 crores.

  • The working capital cycle saw a meaningful improvement of 44%.

  • Strategic progress included the launch of the Dubai Display Center and expansion of the retail ecosystem to six premium experience centers.

Concerns

  • EBITDA margins in H2 FY26 fell to 11% from 14% in H2 last year, a 300 basis points decline.

  • Profit after tax (PAT) for FY26 increased by only 10.1% year-on-year to ₹12.01 crores, lagging revenue growth.

  • Cash flow from operations remained negative at -₹35 crores for FY26.

Key financials

  1. Total Income ₹202.99 Cr +23.4%YoY
  2. EBITDA ₹24.88 Cr
  3. PAT ₹12.01 Cr +10.1%YoY
  4. Long-term Borrowings ₹13.89 Cr
  5. Debtors Days 114 days
  6. Cash Flow from Operations ₹-35 Cr

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

high confidence
  • Capex Capex disclosed
    • Investments in retail expansion, technology, premium products, and export infrastructure
    • Operationalization of Upper Thane cutting and polishing facility
    • Planned deployment of more investments in Italian marble division
    Pursuant to the provisions of Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, Please find enclosed the Transcript of the Earning Conference Call held on Monday, 01st June, 2026 with Investors/ Analysts for financial results and operations for the half year and year ended on 31st March, 2026. ... Dhruv Rakasiya: So yes we do have and things are on time and on place, stay tuned for more further announcements that we'll be making it in public.
  • Debt Debt disclosed
    • Repayment Long-term borrowings reduced from ₹28.98 crores to ₹13.89 crores. ₹15.09 Cr
    Long-term borrowings reduced from 28.98 crores to 13.89 crores. This reflected our continued focus on the prudent capital allocation, financial discipline and creating a stronger foundation for future growth.
  • Liquidity Liquidity disclosed Cash flow from operations remained negative at -₹35 crores for FY26.
    And our cash flow from operations are still negative -35 Cr.

Guidance & targets

Revenue

  • Revenue Growth CAGR Revenue · FY27 · High confidence 25-30%
    So we have already announced that the CAGRs of 25 to 30% have has been maintained before right from our first earning call after getting listed and we have kept the promises and the promise keeps on continuing in the same manner.

    — Dhruv Rakasiya

Profitability

  • EBITDA and PAT Margins Profitability · FY27 · Medium confidence Improvement
    This year our focus for the premium products and other than the service products should improve by and also the export, by which the margins are going to improve, so that the EBITDAs and the PAT figuratively as well as in the percentage manners can shoot as to what our plan is this year.

    — Dhruv Rakasiya

What to watch in Q1 FY27

EBITDA Margin Recovery

Next quarter (FY27)
Current 11% (H2 FY26)
Target Improvement towards previous levels (14% H2 last year)

Why it matters

To verify if the margin compression was indeed temporary and if profitability improves as new products are introduced.

So, we introduced new design set of products, which we wanted to increase the volumes with. We were successful in increasing the volumes, but the sustainability for the margins was not supported enough. So, we had to drop down and increase the volumes by just a few and it is a temporary arrangement that we have made due to the market scenario, and it will be improved by again this year.

Risks & concerns

  • EBITDA Margin Compression in H2 FY26

    medium

    EBITDA margins fell to 11% from 14% in H2 last year due to the introduction of low-margin products to drive volumes, described as a temporary arrangement.

    Analyst acknowledged

  • Negative Cash Flow from Operations

    medium

    Cash flow from operations was negative ₹35 crores for FY26, despite overall revenue growth.

    Analyst acknowledged

  • Geopolitical Impact (Iran War)

    low

    Management stated no adverse impact on volumes or margins from the Iran war, as production was sustained and price increases were passed on to customers.

    Analyst downplayed

Q&A highlights

6 direct, 1 evasive
EBITDA Margin Fall in H2 FY26 Direct
So, we introduced new design set of products, which we wanted to increase the volumes with. We were successful in increasing the volumes, but the sustainability for the margins was not supported enough. So, we had to drop down and increase the volumes by just a few and it is a temporary arrangement that we have made due to the market scenario, and it will be improved by again this year.

Explains the reason for the significant margin contraction in the second half of the fiscal year and management's strategy.

Asked by Guneet Singh

Impact of Iran War on Volumes and Margins Direct
So, Guneet, the issue of war has sustained has dropped down on the supply of gas, by which the production has been affected in the Morbi cluster in Gujarat. But we our group manufacturers were sustain could sustain the manufacturing by the quantum of production that they could pre-plan and keep it in stock with them. And also we could sustain the same by re-preordering it. So the pricing was increased at the last few last month of March, approximately 15 to 20 days by which the impact has been passed on to the customers. And that's how the impact has been. Our export has not been affected because our concentration to the Middle East areas have not been much. So, we were able to sustain and suffice our needs to the local customers here in India.

Clarifies that the company was not adversely impacted by geopolitical events, maintaining volumes and passing on costs.

Asked by Guneet Singh

Trade Receivables Aging Evasive
Detailed information can be shared once the balance sheets are available for viewing in the public very soon and you'll have all the required figures, Guneet.

Management deferred providing specific details on trade receivables aging, which is a key indicator of asset quality.

Asked by Guneet Singh

FY27 Volume Growth and Margin Improvement Drivers Partial
So we have already announced that the CAGRs of 25 to 30% have has been maintained before right from our first earning call after getting listed and we have kept the promises and the promise keeps on continuing in the same manner. And for which the required steps that are required for introducing new products, new depots, new horizons have already are all scheduled up to keep it for the required margins as well.

Reiterates the company's growth targets and strategic drivers for future margin improvement, though without specific quantification for FY27.

Asked by Guneet Singh

Contribution of Premium Products Direct
So, this Marmi Bella has been introduced as a premium segment of natural imported marbles. So that is a segment apart from the regular product the base that we have. And our concentration should be well enough for improving the Guneet's previous question of improving the EBITDAs and the net margins for this year as well, including the customization of tiles that is the in-trend and requirement of the local end users.

Highlights the strategic importance of premium offerings and customization in driving margin improvement and market differentiation.

Asked by Raghav Shrivastava

Benefits of Upper Thane Cutting and Polishing Facility Direct
Now after importing after implementing this step, we are able to deliver that product in the same manner within 24 hours as well, because of the hands-on experiences of the skilled labors that we have, the own control over the fine tuning of the product segment, and also the customers who are joining up new or the existing ones build up their confidence in delivering the project to their to their customers on time.

Details how backward integration improves delivery times, quality control, and customer confidence, strengthening the company's premium positioning.

Asked by Raghav Shrivastava

Impact of AI Studio and Digital Automation Direct
So the architects or contractors who have the experience in the same industry are able to imagine it easily. But the end user who has to utilize the space is always under a fix whether this product is going to give them the required satisfaction for utilizing the space or not. These AI Studio that we have developed approximately four years ago, four or five years ago now and kept on updating the platform, has built in the confidence in the customer to finalize the product and give them options on a very faster decision making.

Explains how technology enhances customer engagement, speeds up decision-making, and provides a competitive edge in a service-oriented market.

Asked by Raghav Shrivastava

Sustainability of Working Capital Improvements Direct
So far we have been successful even in extreme weather conditions that the global globe is currently facing. So yes, this looks like that it will be a sustainable approach that we are successful with for over a period of years.

Management confirms the sustainability of the significant improvements made in working capital management and debtor days.

Asked by Riya Shah

2 min read 7 chapters

Detailed narrative

FY26 Financial Performance Overview

Manoj Ceramic reported a healthy 23.4% year-on-year increase in total income for FY26, reaching ₹202.99 crores, driven by strong performance across retail, dealer, and project channels. EBITDA stood at ₹24.88 crores for the full year. However, profit after tax (PAT) grew at a slower pace of 10.1% year-on-year, totaling ₹12.01 crores, indicating some pressure on the bottom line despite top-line growth.

Balance Sheet Strengthening and Efficiency Gains

A significant achievement in FY26 was the improvement in the company's balance sheet quality. Debtors improved substantially from 163 days to 114 days, reflecting enhanced collection efforts and tighter working capital control. Long-term borrowings were nearly halved, reducing from ₹28.98 crores to ₹13.89 crores, demonstrating prudent capital allocation. Overall, the working capital cycle improved meaningfully by 44%, contributing to financial flexibility.

Strategic Focus on Premiumization and Technology

MCPL is executing a clear vision to transform into a B2C technology-enabled premium surface solutions brand. Key initiatives include strengthening its premium product portfolio with offerings like next-generation quartz surfaces and imported marble solutions under the Marmi Bella brand. The company's AI-powered MCPL Studio platform and digital transformation initiatives have improved customer engagement and showroom productivity, supporting an omni-channel approach.

H2 FY26 Margin Compression and Recovery Strategy

EBITDA margins in H2 FY26 fell to 11% from 14% in H2 last year, a 300 basis points decline. Management attributed this to the temporary introduction of lower-margin tile products to drive volumes. They anticipate margin restoration and improvement in FY27 with the introduction of new technological advancement products and a continued focus on premium offerings.

Export Market Expansion and International Presence

The company made significant strides in expanding its international footprint, launching a Dubai Display Center to strengthen its presence in the GCC region. Efforts are underway to build relationships in key international markets, including Burundi, Angola, Sudan, Senegal, and Uganda. Management expects fruitful results from its focused export team within the first six months of FY27, particularly in the African region.

Operational Benefits of Backward Integration

The operationalization of the Upper Thane cutting and polishing facility marks MCPL's first step towards backward integration. This capability has significantly reduced delivery times for customized products from 10-12 days to within 24 hours. It also provides greater control over customization, quality, and execution timelines, supporting marginal enhancement and strengthening the company's positioning in the premium segment.

Asset-Light Model and Competitive Advantage

Manoj Ceramic emphasizes its asset-light business model, which allows for quicker adaptation to new technologies and products compared to traditional manufacturers. This approach, combined with its widespread geographical reach and integrated ecosystem, enables the company to participate across multiple high-growth segments. The ability to quickly tie up with new manufacturers and redistribute products efficiently provides a competitive edge in the market.

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