ASIANTILES - Asian Granito

📊 NSE: ASIANTILES 🏢 Ceramics - Tiles / Sanitaryware 📅 Last Updated: 12/13/2025 18:35

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for FY25 was INR 1,558.52 Cr, up 1.79% YoY. For Q2FY26, Ceramic Tiles revenue grew 8% YoY to INR 353 Cr, Marble & Quartz grew 3% YoY to INR 52 Cr, and Sanitaryware revenue increased 35% YoY to INR 26 Cr.

Geographic Revenue Split

Domestic revenue is split across West (53%), North (20%), South (19%), and East (9%). Exports contribute 19% of total sales, reaching INR 291 Cr in FY25 across 100+ countries.

Profitability Margins

Consolidated Net Profit Margin for FY25 was 2.37%, a turnaround from a net loss in FY24. Q2FY26 PAT margin improved to 4% (INR 16 Cr) compared to 0.30% in H1FY25.

EBITDA Margin

Consolidated EBITDA for FY25 was INR 75.72 Cr (4.8% margin). Q2FY26 EBITDA grew 148% YoY to INR 37 Cr, achieving a 9% margin due to higher product realizations and softening gas prices.

Capital Expenditure

The company increased its Authorized Share Capital from INR 150 Cr to INR 320 Cr in August 2024 to support expansion. Specific historical INR Cr spend not disclosed.

Credit Rating & Borrowing

Infomerics reaffirmed the rating at 'Stable' in May 2025. Borrowing costs are sensitive to high working capital intensity and debt protection parameters.

⚙️ Operational Drivers

Raw Materials

Natural Gas and raw materials (clay, chemicals) represent 70% to 75% of total operating expenses.

Import Sources

Sourced domestically and through international operations in Thailand, Dubai, UK, Indonesia, and Senegal.

Key Suppliers

ONGC is a key supplier of gas, though recent supply issues have forced reliance on spot market prices.

Capacity Expansion

Current tile capacity utilization is 70%, while Marble and Quartz utilization is 40%. Authorized capital was increased to INR 320 Cr to facilitate future expansion.

Raw Material Costs

Raw material and fuel costs account for 70-75% of revenue. Profitability is highly sensitive to these costs as passing on price increases to customers is challenging.

Manufacturing Efficiency

Capacity utilization stands at 70% for tiles and 40% for marble and quartz. Efficiency is driven by AGL's own plants in Dalpur, Dholka, Idar, and Mehsana.

Logistics & Distribution

Distribution is managed through a pan-India network and exports to 100+ countries; costs are impacted by global shipping disruptions like the Red Sea crisis.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

Growth is targeted through global expansion (new operations in Thailand, Dubai, UK), product mix optimization (shifting to high-margin parking tiles and frit), and leveraging a strong retail presence which accounts for 54% of sales.

Products & Services

Wall Tiles, Vitrified Tiles, Ceramic Tiles, Marble, Quartz, Sanitaryware, Bathware, Frit, and Parking Tiles.

Brand Portfolio

AGL, Asian Granito.

New Products/Services

Expansion into parking tiles and frit manufacturing in subsidiaries to capture better margins.

Market Expansion

Market expansion into Thailand via the HSTL acquisition and new operations in Dubai, UK, Indonesia, and Senegal.

Market Share & Ranking

AGL holds a strong brand recall position in the organized tiles market; specific market share % not disclosed.

Strategic Alliances

JVs and subsidiaries established in the USA, UK, UAE, and Nepal to mitigate geographic concentration risk.

🌍 External Factors

Industry Trends

India is emerging as a global sourcing hub for tiles due to competitive costs. There is a rising industry shift toward ESG compliance and sustainable manufacturing.

Competitive Landscape

Faces intense competition from the unorganized tile market, addressed through innovation and cost-efficient processes.

Competitive Moat

Moat consists of a pan-India distribution network, strong brand recall in the organized segment, and an extensive export footprint (100+ countries). Sustainability is supported by a shift to higher-margin specialized products.

Macro Economic Sensitivity

Highly sensitive to the cyclical real estate industry and global construction trends.

Consumer Behavior

Shift toward innovative lifestyle solutions and premium products in the retail segment (54% of sales).

Geopolitical Risks

Red Sea crisis and potential trade wars are cited as risks to global output and shipping timelines.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with Section 134(5)(e) of the Companies Act, 2013 regarding internal financial controls. Subject to environmental and HSE regulations across all plants.

Environmental Compliance

Implemented wind energy in manufacturing and effluent treatment systems; aligned with BRSR and international ESG benchmarks.

Taxation Policy Impact

The company reported deferred taxes in FY25, which contributed to the reporting of a consolidated net profit of INR 20.56 Cr.

Legal Contingencies

A complex legal matter is pending where the final outcome remains uncertain, making it impossible for management to determine the potential financial impact at this time.