Marvel Decor Ltd — Q2 FY26 earnings call

Call held 15 Nov 2025

Management summary

Marvel Decor Ltd reported H1 FY26 consolidated revenue of ₹37 crores, driven by strong growth in its project business which reached ₹11 crores. The company made strategic investments in new partnerships with Lutron, Livspace, and a US design & build firm, alongside international expansion into the US market. However, these investments in hiring and marketing led to margin compression and increased receivables in the first half, with management expecting improvements in H2.

Highlights

  • Consolidated revenue for H1 FY26 reached ₹37 crores.

  • Project business revenue significantly increased to ₹11 crores in H1 FY26 from ₹5.4 crores last year, representing 103.7% YoY growth.

  • Established key partnerships with Lutron (targeting ₹3-4 crores in H2 FY26), Livspace (exclusive for curtain tracks/motors), and a US design & build company (potential $10 million annually).

  • Expanded international operations by adding a Callistus USA subsidiary in H1 FY26.

  • Strategic focus on high-end residential and project business is showing good traction, with project margins now exceeding retail margins.

Concerns

  • H1 FY26 saw margin compression due to significant investments in hiring, with consolidated employee costs rising to ₹7.8 crores (up 47.17% YoY), and marketing activities totaling ₹1.5 crores.

  • Receivables increased due to the longer payment cycles (60-90 days) inherent in the growing project business segment.

  • Long-term borrowings increased by approximately ₹4.55 crores, primarily from a promoter loan, indicating reliance on internal funding for growth initiatives.

Key financials

  1. Revenue (Consolidated) ₹37 Cr
  2. Revenue (Standalone) ₹20 Cr
  3. Project Business Revenue ₹11 Cr +103.7%YoY
  4. Employee Cost (Consolidated) ₹7.8 Cr +47.2%YoY
  5. Employee Cost % of Revenue 21%
  6. Marketing Expenses ₹1.5 Cr

What they filed

Q4 FY26: revenue up 15.7%, net profit up 31.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY23Q4 FY23Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue23 26 26 27 31 +32%32 +23%37 +41%32 +16%
EBITDA0 3 3 3 4 +693%3 +1%3 −18%2 −31%
Net profit1 1 1 2 2 +162%2 +14%2 +39%2 +31%
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.

Segment breakdown

Share of Revenue
₹74 Cr Total
  • Non-Project Business ₹26 Cr 35.1%
  • Dubai Revenue ₹19 Cr 25.7%
  • India Revenue ₹18 Cr 24.3%
  • Project Business ₹11 Cr 14.9%

Capital allocation

high confidence
  • Capex ₹0.45 Cr
    • Fully automatic stitching machines for Dubai operations ₹0.45 Cr
    So almost same. So we just want the stitching unit. Currently we are outsourcing it in Dubai. But now all fully automatic machine is coming in this month only. So other things are very similar. Just stitching unit, we need to build. ... Not much. Sorry. Khwahish, how much amount of these machines total? 200,000 dirhams.
  • Debt Debt disclosed
    I'm referring to the figure in under non-current liabilities in the balance sheet which went up from ₹69 lakhs as of March to ₹5.24 crores as of September. So that roughly ₹4.5 crores. I was asking about that. Is that the same thing you're saying? ... Same thing. It includes a personal loan I gave to company.. ... And you're saying that is without interest and like payable on demand when possible. That's it. Yes. Exactly.
  • M&A Callistus USA Acquisition · Closed

    Expansion of international presence and business in the USA.

    So we are having factory in Jamnagar and one factory in Dubai. Total employee strength is more than 400 people, 100 plus people are in our Dubai factory and all sales and marketing. I would like to go for the few things that is, key highlights I would like to give it to you that what we have achieved in H1. So, there's one things I would like to tell you that is Lutron partnership. ... Callistus is a 100% subsidiary company of Marvel. We are having one more subsidiary company at Callistus UK, and we have added one more at this Callistus USA as well in last H1.

Guidance & targets

Project Business

  • Funnel for H2 Project Business · H2 FY26 · High confidence ₹15 crores
    And we are having almost ₹15 Cr funnel for H2. That is also a big achievement for us.

    — Ashok Paun

USA Company Business

  • Annual Business Potential USA Company Business · in a year · High confidence $10 million
    So, they are saying this, we may give you a business of $10 million in a year.

    — Ashok Paun

  • Current Funnel USA Company Business · current · High confidence $2 million
    And also, we are having $2 million funnel with them as well.

    — Ashok Paun

Lutron Partnership

  • Business in H2 Lutron Partnership · H2 FY26 · High confidence ₹3-4 crores
    So we are expecting kind of in H2, almost 3 Cr to ₹4 Cr business from them and next year from almost ₹10 Cr in a year.

    — Ashok Paun

  • Business in Next Year Lutron Partnership · next year · High confidence ₹10 crores

    — Ashok Paun

  • Pan-India Expansion Lutron Partnership · within six months · High confidence Pan-India
    So hopefully, I think within the six months, we'll do Pan-India as well with Lutron.

    — Ashok Paun

Employee Cost

  • Increase in H2 Employee Cost · H2 FY26 · Medium confidence 5-10%
    So most probably, maybe 5% to 10% cost of employee may increase in H2, I think so.

    — Ashok Paun

Margins

  • Improvement Margins · from H2 FY26 · High confidence Improvement
    I think, no. So, we'll get the result on margin, I think so from H2 only, because the hiring part, what we did so those people will result in this H2, I'm sure. So, it will improve from H2 only, I think so. And from next year, for sure, I think.

    — Ashok Paun

What to watch in Q3 FY26

Margin improvement

H2 FY26
Current Compressed in H1 FY26 due to investments
Target Improvement from H2 FY26

Why it matters

Management expects H2 to show results of H1 investments and margin recovery is key for profitability.

I think, no. So, we'll get the result on margin, I think so from H2 only, because the hiring part, what we did so those people will result in this H2, I'm sure. So, it will improve from H2 only, I think so. And from next year, for sure, I think.

Risks & concerns

  • Margin compression due to investments

    medium

    H1 margins impacted by significant hiring and marketing spend (₹1.5 crores), which are strategic investments for future growth.

    Management acknowledged

  • Increased receivables in project business

    medium

    Project business inherently involves longer payment cycles (60-90 days), leading to higher receivables and impacting cash flow.

    Analyst acknowledged

Q&A highlights

6 direct
Sales breakup (Dubai/India, Project/Non-Project) and margin reduction Direct
So last H1 we did ₹11 Cr out of ₹38 Cr of consolidated from the projects. ... Ishpreet, to your answer on the difference ₹20 crores are standalone revenue, consol was 37. But there is some sales that happens from India to Dubai. So it'll not just be 17. It'll be approximately ₹18-₹20 crores of revenue in Dubai.

Clarifies H1 FY26 consolidated revenue, project business contribution, and provides an estimate for Dubai revenue, which was not explicitly stated in prepared remarks, along with addressing margin compression.

Asked by Ishpreet Kaur

Reasons for margin reduction in H1 Direct
So, there's a two things were there. Though, so one is, we are hiring a lot of people as I have mentioned before that, we have now infrastructure built... So that's why, we hired a lot of people in last year in H1 as well. ... And number two that we participated in the Smart Home Expo... So that marketing expenses was there also. Most ₹1.5 Cr a total marketing expense was there.

Provides specific, quantified reasons (significant hiring and ₹1.5 crores in marketing expenses) for the margin compression experienced in H1 FY26.

Asked by Ishpreet Kaur

Lutron partnership details and revenue potential Direct
So, Lutron is selling only motor. So, we are giving strong of Lutron motors and our Marvel blinds connect with the Lutron motors... So we are expecting kind of in H2, almost 3 Cr to ₹4 Cr business from them and next year from almost ₹10 Cr in a year.

Explains the nature of the partnership (Marvel supplies blinds for Lutron motors), its premium positioning, and provides specific revenue targets for H2 FY26 and the next year.

Asked by Ishpreet Kaur

Livspace partnership details and exclusivity Direct
So right now, we have started with them curtain tracks and motor. So that will be exclusive part of Livspace with all over India right now. And in further, once we go with this, we may add the blinds with them as well, another product as well.

Confirms the exclusivity of the Livspace partnership for curtain tracks and motors across India and outlines the potential for future product expansion to include blinds.

Asked by Ishpreet Kaur

Employee cost trajectory and revenue per employee Partial
No, what he's asking about is The employee cost has increased here, how much more will it rise going forward? which is your employee cost was ₹7.8 crores in this half versus ₹3.6 crores in standalone and the remaining in consol versus ₹5.3 crores last year. ... So most probably, maybe 5% to 10% cost of employee may increase in H2, I think so.

Highlights the significant increase in employee costs in H1 and provides guidance for a further increase in H2, indicating continued investment in human capital, but management could not provide a revenue per employee benchmark.

Asked by Pawan Shehrawat

Increase in long-term borrowings and promoter loan Direct
I'm referring to the figure in under non-current liabilities in the balance sheet which went up from ₹69 lakhs as of March to ₹5.24 crores as of September. So that roughly ₹4.5 crores. ... Same thing. It includes a personal loan I gave to company.. ... And you're saying that is without interest and like payable on demand when possible. That's it. Yes. Exactly.

Clarifies that the increase in long-term borrowings is primarily a promoter loan, which is interest-free and payable on demand, providing flexible and low-cost funding for the company.

Asked by Vinay Ambekar

Promoter shareholding reduction Direct
So as everybody know that, my brother was in this business as well before two years. So they had 11% equity. So it was totally 18 lakhs shares. ... So that 18 lakh shares, I bought from him and for a temporary basis to settle. So I have sold only and only share what I bought from him. ... So we have other personal borrowing and for our property or other kind of things as well. So those kind of, I need to balance my personal thing as well. And I have to pay him a big amount of money. So that will come from this only.

Explains the promoter shareholding reduction as a personal financial settlement with a brother, clarifying it is not due to a lack of confidence in the company but rather a personal liquidity event.

Asked by Vinay Ambekar

2 min read 5 chapters

Detailed narrative

Strategic Shift to Project Business and High-End Market

Marvel Decor Ltd is strategically shifting its focus towards high-end residential, hospitality, and commercial project businesses, moving beyond its traditional retail presence. This new vertical contributed ₹11 crores in H1 FY26, a significant increase from ₹5.4 crores in H1 FY25, representing 103.7% YoY growth. The company has a funnel of ₹15 crores for H2 FY26 in this segment and notes that project margins are now higher than retail due to larger volumes and reduced per-unit costs.

Key Partnerships Driving Future Growth

The company has secured significant partnerships, including an exclusive Pan-India tie-up with Livspace for curtain tracks and motors, with plans to expand to blinds. A partnership with Lutron, a premium US-based motor manufacturer, is expected to generate ₹3-4 crores in H2 FY26 and ₹10 crores in the next year. Additionally, a tie-up with a large US design and build company, which has a $150 million annual business, is projected to bring in $10 million (approx. ₹83 crores) in window covering business annually, with a current funnel of $2 million.

International Expansion and Operational Enhancements

Marvel Decor expanded its international footprint by adding a Callistus USA subsidiary in H1 FY26, complementing its existing Dubai and UK operations. In Dubai, the company plans to establish an Experience Center to engage architects and designers, and is focusing on larger key accounts while strategically reducing reliance on small customers. The company is also investing approximately 200,000 dirhams (₹45 lakhs) in a curtain stitching unit in Dubai, with fully automatic machines arriving this month, to complement its blinds business and offer a complete window covering solution.

H1 FY26 Financial Performance and Margin Outlook

For H1 FY26, Marvel Decor reported a consolidated revenue of ₹37 crores, with standalone revenue at ₹20 crores. The company experienced margin compression in H1 due to substantial investments in hiring, with consolidated employee costs rising to ₹7.8 crores (up 47.17% YoY), and marketing activities, which amounted to ₹1.5 crores. Employee cost represented 21% of revenue. Management anticipates margin improvement from H2 FY26 as these investments begin to yield results.

Capital Structure and Shareholding Clarifications

The company's long-term borrowings increased by approximately ₹4.55 crores in H1 FY26, primarily due to a personal loan from the promoter to the company. This loan is interest-free and payable on demand, providing flexible capital. A recent reduction in promoter shareholding was clarified as a personal transaction related to settling with a brother, involving the sale of shares previously acquired from him, and not indicative of a change in company outlook.

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