💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 71.4% YoY to INR 164.30 Cr in FY25 from INR 95.82 Cr in FY24. In H1 FY26, revenue reached INR 81.49 Cr, a 23.3% increase YoY. Growth is driven by the expansion of the dealer network and a shift toward mid-premium ceramic and porcelain tiles.

Geographic Revenue Split

Domestic sales currently dominate the mix, with a high concentration in Maharashtra and Gujarat. Exports accounted for approximately 1% of revenue in FY25, but management targets an increase to 20% over the next three years through sovereign partnerships in Africa (Burundi, Angola, Sudan, Senegal) and new centers in Dubai and the UK.

Profitability Margins

Net Profit Margin (PAT) improved from 6.26% in FY24 to 6.56% in FY25, and further to 6.78% in H1 FY26. This improvement is attributed to higher absolute EBITDA and better absorption of fixed costs despite rising input prices.

EBITDA Margin

EBITDA margin was 13.73% in FY25, a slight decrease from 14.97% in FY24 due to rising costs of tiles, adhesives, and logistics. H1 FY26 EBITDA margin stood at 13.58%, reflecting a 16 BPS YoY compression due to increased employee and other operational expenses.

Capital Expenditure

The company raised INR 14.47 Cr through an IPO in January 2024 and additional funds via a Follow-on Public Offering (FPO) in FY25 to fund working capital and infrastructure. Planned backward integration at the Thane facility involves investments in cutting, sizing, and re-polishing machinery to reduce job work costs.

Credit Rating & Borrowing

Infomerics Ratings reaffirmed the long-term rating at IVR BBB- and revised the outlook from 'Stable' to 'Positive' in November 2025. The company utilizes a cash credit facility of INR 24.50 Cr with an average utilization of ~99%.

⚙️ Operational Drivers

Raw Materials

The company primarily procures finished ceramic tiles (wall and floor), porcelain tiles, and tile adhesives. Raw material expenses accounted for INR 131.81 Cr in FY25, representing approximately 80.2% of total revenue.

Import Sources

Sourcing is primarily domestic, centered in the Morbi region of Gujarat, which is the global hub for ceramic manufacturing. International sourcing includes imported tiles for the premium segment.

Key Suppliers

MCPL relies on a network of contract manufacturers and sub-contractors in Morbi, Gujarat, for its OEM-designed monopoly products. It also holds dealerships for brands like Kajaria, Parryware, and Varmora.

Capacity Expansion

MCPL operates a contract-manufacturing model rather than owning heavy kilns. Expansion is focused on infrastructure: it maintains over 1,26,000 sq. ft. of warehouse space and is expanding capacity in Pune, Bhiwandi, and Nagpur to improve distribution efficiency.

Raw Material Costs

Raw material costs increased by 77.6% YoY to INR 131.81 Cr in FY25. The company manages costs through flexible sourcing and backward integration at its Thane facility to handle value-added finishing in-house.

Manufacturing Efficiency

Efficiency is measured by inventory turnover, which improved from 3.96x in FY24 to 4.36x in FY25. The company uses its 'MCPL Studio' AI platform to increase retail conversion rates and reduce sales cycles.

Logistics & Distribution

Distribution is handled through a multi-channel network. Logistics costs have risen due to increased packaging requirements for premium large-format slabs (up to 3200x1620 mm).

📈 Strategic Growth

Expected Growth Rate

25-30%

Growth Strategy

Growth will be driven by: 1) Increasing export revenue from 1% to 20% via sovereign partnerships in Africa and a new Dubai experience center; 2) Domestic expansion through a strategic partnership with Jaquar; 3) Backward integration at the Thane facility to capture higher margins on finishing work; and 4) Digital scaling through the AI-powered MCPL Studio.

Products & Services

Ceramic and porcelain wall/floor tiles, quartz surfaces, exotic stones, tile adhesives, and AI-driven interior visualization services.

Brand Portfolio

MCPL, MCPL Studio (AI Platform), and MCPL Ceramic Ltd (UK subsidiary).

New Products/Services

Introduction of large-format porcelain slabs (3200x1620 mm) and premium 'exotic stone' categories targeted at the luxury residential market.

Market Expansion

Targeting Tier 2 and Tier 3 cities in India for retail growth and expanding the international footprint into Europe and Southeast Asia.

Market Share & Ranking

MCPL is a leading regional player in Western India, transitioning from a traditional trader to a globally aligned ceramic solutions provider.

Strategic Alliances

Strategic partnership with Jaquar for domestic distribution and sovereign partnerships in Burundi, Angola, Sudan, and Senegal for infrastructure projects.

🌍 External Factors

Industry Trends

The Indian ceramic tile market (USD 10.45B in 2025) is growing at a 13.54% CAGR. Trends include a shift toward large-format slabs, hygienic flooring, and digital 'visual commerce' where customers preview designs via AI before purchase.

Competitive Landscape

Competes with large organized players like Kajaria and Somany, as well as unorganized manufacturers from the Morbi cluster.

Competitive Moat

Moat is built on a 30-year legacy, a robust dealer network in South/West India, and proprietary AI visualization technology. These are sustainable due to the high cost of building a trusted brand and distribution reach in the fragmented tile industry.

Macro Economic Sensitivity

Highly sensitive to interest rates and urban housing demand. A 1% rise in home loan rates typically slows down the renovation and replacement market, which is a key revenue driver.

Consumer Behavior

Shift toward aspirational lifestyles and premium interiors in Tier 2/3 cities is driving demand for higher-margin porcelain and quartz products.

Geopolitical Risks

Trade barriers or changes in import duties on ceramic tiles in African markets could impact the 20% export growth target.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by construction material standards and BIS certifications for tile quality. Export operations must comply with international standards in the UK and UAE.

Environmental Compliance

MCPL focuses on ESG alignment by sourcing from compliant manufacturers in Morbi and optimizing logistics to reduce carbon footprint.

Taxation Policy Impact

The company is subject to standard Indian corporate tax rates; H1 FY26 tax expense was INR 1.86 Cr on a PBT of INR 7.39 Cr (~25%).

Legal Contingencies

No major pending litigation or court cases with significant financial values were disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the cyclicality of the real estate market. A prolonged downturn could lead to inventory pile-up and a 15-20% drop in revenue.

Geographic Concentration Risk

High concentration in Western and Southern India. Expansion into Northern and Eastern regions is required to mitigate regional economic risks.

Third Party Dependencies

Heavy reliance on contract manufacturers in Morbi; any labor unrest or gas price hikes in that region would disrupt the entire supply chain.

Technology Obsolescence Risk

Risk of digital platforms becoming obsolete; MCPL mitigates this by investing in its Digital Transformation Division and AI-powered Studio.

Credit & Counterparty Risk

Receivables are managed at 137 days. While high, the company uses stringent B2B credit assessments and trade insurance to minimize bad debt risk.