💰 Financial Performance

Revenue Growth by Segment

Not explicitly disclosed by segment, but the company achieved a significant turnaround with a Net Profit before tax of INR 88.42 Lakhs for H1 FY26 compared to a loss of INR 585.45 Lakhs in H1 FY25.

Profitability Margins

The company moved from a net loss position to a Net Profit before tax of INR 88.42 Lakhs in H1 FY26. Operating profit before working capital changes stood at INR 602.95 Lakhs, representing a massive 1,687% increase from INR 33.73 Lakhs in H1 FY25.

EBITDA Margin

Operating profit before working capital changes was INR 602.95 Lakhs for H1 FY26, up from INR 33.73 Lakhs YoY. This surge indicates a substantial improvement in core operational profitability and cost management.

Capital Expenditure

The company invested INR 14.60 Lakhs in the purchase of fixed assets during H1 FY26, while realizing INR 24.62 Lakhs from the sale of fixed assets.

Credit Rating & Borrowing

Total borrowings as of September 30, 2025, stood at INR 5,371.39 Lakhs (INR 3,120.40 Lakhs non-current and INR 2,250.99 Lakhs current). Finance costs decreased by 16.4% YoY to INR 173.83 Lakhs, indicating a reduction in the interest burden.

⚙️ Operational Drivers

Raw Materials

Not specifically named, but the business involves granite and vitrified tile manufacturing, requiring raw materials like clay, feldspar, and silica sand.

Capacity Expansion

Current installed capacity is not disclosed; however, the company recently approved the allotment of 3,00,000 fully paid-up equity shares on November 18, 2025, to strengthen its capital base.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but inventory levels increased by 2.2% to INR 6,492.11 Lakhs as of September 30, 2025.

Manufacturing Efficiency

Operating profit before working capital changes improved by 1,687% YoY, suggesting a significant leap in manufacturing efficiency and cost optimization during H1 FY26.

📈 Strategic Growth

Growth Strategy

The company is focusing on capital restructuring and liquidity management, evidenced by the allotment of 3,00,000 equity shares in November 2025 and the repayment of INR 978.53 Lakhs in long-term borrowings during H1 FY26 to reduce interest costs.

Products & Services

Granite slabs, vitrified tiles, and ceramic products used in construction and home improvement.

Brand Portfolio

Lexus Granito

🌍 External Factors

Industry Trends

The ceramics and granite industry is evolving with a shift toward high-end vitrified tiles and sustainable manufacturing; Lexus is positioning itself by improving operational profitability and cleaning up its balance sheet.

Competitive Landscape

Operates in the highly competitive Morbi ceramic cluster against both organized and unorganized players.

Competitive Moat

The company's moat is linked to its established brand 'Lexus Granito' and its manufacturing base in Morbi, Gujarat, a global hub for ceramics, providing cost advantages in sourcing and logistics.

Macro Economic Sensitivity

The business is sensitive to the real estate and construction sectors; a slowdown in infrastructure development would directly reduce demand for granite and tiles.

⚖️ Regulatory & Governance

Industry Regulations

Subject to environmental norms for ceramic manufacturing and mining regulations for granite sourcing.

Taxation Policy Impact

The company has a significant Deferred Tax Asset of INR 777.77 Lakhs as of September 30, 2025, which can be used to offset future tax liabilities.

Legal Contingencies

The company has disclosed pending litigation as of March 31, 2025, in Note 32 of its financial statements, though the specific INR value was not detailed in the summary.

⚠️ Risk Analysis

Key Uncertainties

High financial leverage (Debt-to-Equity ratio of approximately 3.3x) and high inventory concentration (54% of total assets) pose significant liquidity and solvency risks.

Geographic Concentration Risk

Manufacturing is concentrated in Morbi, Gujarat, making it vulnerable to regional regulatory or infrastructure disruptions.

Third Party Dependencies

The company relies on sanctioned working capital limits in excess of INR 5 Crores from banks, indicating high dependency on external banking partners for daily operations.

Technology Obsolescence Risk

The company is maintaining its audit trail features in accounting software as per regulatory requirements, indicating a move toward digital compliance.

Credit & Counterparty Risk

Receivables quality appears to be improving with an 11.9% reduction in trade receivables to INR 735.40 Lakhs, reducing credit risk.