💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations for FY 2024-25 was INR 202.86 Cr, representing an 8.87% growth YoY. For the half-year ended September 30, 2025 (H1 FY26), the 'Sale of Products' segment contributed INR 67.98 Cr, while 'Sale of Services' contributed INR 20.81 Cr.

Geographic Revenue Split

Not disclosed in available documents. The company operates primarily from its registered office in Hubli and corporate office in Bengaluru, Karnataka.

Profitability Margins

The Net Profit Ratio improved significantly from 3% in FY 2023-24 to 5% in FY 2024-25, a 66.67% increase. Return on Equity (ROE) also saw a substantial rise from 1% to 3% (up 200%) during the same period.

EBITDA Margin

Not explicitly disclosed as a single percentage, but the company reported a Net Profit Ratio of 5% for FY 2024-25. Core profitability is trending upward as evidenced by the 200% increase in ROE.

Credit Rating & Borrowing

Not disclosed in available documents. However, the company reported interest costs of INR 4.49 Cr for H1 FY26 and INR 10.39 Cr for FY 2024-25, with a low Debt-Equity Ratio of 0.11.

⚙️ Operational Drivers

Raw Materials

The company identifies 'unprocessed materials' and 'production consumables' as key inputs. Production consumables cost INR 1.45 Cr in H1 FY26.

Capacity Expansion

Current and planned capacity metrics are not disclosed in the provided documents.

Raw Material Costs

Raw material costs are subject to high volatility. The company monitors these closely as they directly impact the cost of manufacturing ceramic tiles.

Manufacturing Efficiency

Capacity utilization is not specified, but the Inventory Turnover Ratio improved by 13.84% from 1.59 in FY24 to 1.81 in FY25, indicating better operational efficiency.

Logistics & Distribution

Selling expenses, which include distribution, were INR 5.27 Cr in H1 FY26, representing approximately 5.7% of revenue.

📈 Strategic Growth

Growth Strategy

The company focuses on improving profitability (ROE up 200%) and operational efficiency (Inventory Turnover up 13.84%). It leverages its associate company, RNS Power Limited, for consolidated financial strength and maintains ISO 9001-2008 certification to ensure product quality in the ceramic tile sector.

Products & Services

Ceramic tiles, vitrified tiles, and related flooring services.

Brand Portfolio

Naveen Tile

Strategic Alliances

Consolidated financials include RNS Power Limited as an associate company.

🌍 External Factors

Industry Trends

The ceramic tile sector is currently facing unpredictable marketplaces and volatility in input costs. Future growth is contingent on stable fuel availability and reasonable power costs.

Competitive Moat

The company's moat is built on its established 'Naveen Tile' brand and ISO 9001-2008 quality certification. Sustainability is supported by a very low Debt-Equity Ratio (0.11), providing financial resilience against industry downturns.

Macro Economic Sensitivity

Highly sensitive to inflation in energy prices (Power/Fuel) and raw material costs, which are critical for the ceramic sector's growth.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by Indian Accounting Standards (IND AS) and ISO 9001-2008 certification standards. The company must also comply with SEBI (LODR) Regulations for financial reporting.

Taxation Policy Impact

The company provided INR 1.94 Cr for taxation in FY 2024-25.

⚠️ Risk Analysis

Key Uncertainties

Volatility in power and fuel costs (potential impact of 5-10% on margins) and unpredictable marketplace stability.

Geographic Concentration Risk

Operations are concentrated in Karnataka, with offices in Hubli and Bengaluru.

Third Party Dependencies

Dependency on RNS Power Limited as an associate for consolidated performance.

Credit & Counterparty Risk

Receivables risk has increased as the Trade Receivables Turnover Ratio fell 37.16% YoY, indicating potential delays in customer payments.