ASIANTILES - ASIAN GRANITO INDIA LIMITED Share Price

The management of Asian Granito India Limited provided an optimistic outlook during the Q3 earnings call on February 12, 2026. Kamlesh Patel, Chairman and Managing Director, highlighted a strong performance with a revenue growth of 15.8% year-over-year, reaching Rs.423 crores in Q3 FY'26 compared to Rs.366 crores in Q3 FY'25. The EBITDA saw a substantial increase, rising by 210% from Rs.13.15 crores to Rs.40.8 crores. For the nine months of FY'26, the company reported a PAT of Rs.43.83 crores, improving from a loss of Rs.4.97 crores in the previous year.

Management emphasized a strategic focus on expanding exports, predicting that export revenue will grow from 15% to 18-20% of total revenue, driven by favorable changes in U.S. trade duties, which are now at an overall 18% compared to 50%. The company plans to leverage its brand presence and new product mix to enhance revenue realization, expecting further growth in the coming years.

Key points included:

• Target revenue of Rs.6,000 crores by 2031, indicating a commitment to a CAGR of approximately 28% over the next five years.
• Planned CAPEX of around Rs.25 crores for the current year, with projections of Rs.40 crores for the next, aimed at enhancing international presence and showroom expansions.
• Plans for opening 500 new exclusive showrooms, increasing dealer networks, and maintaining a strong retail focus.

To manage potential overcapacity issues in the tile industry, especially concerning exports, management noted the strategic decision to focus on product innovation rather than significant greenfield investments.

Q1: Can you explain the major factors driving your 21% year-over-year revenue growth for tiles, given that the industry is recovering?

A1: We've shifted from manufacturing small traditional tiles to larger formats and invested in a new ceramic tiles plant. Our average sales realization has increased significantly due to improved product mixes and advanced digital printing technology. We also launched our sanitary ware and enhanced our quartz offerings with robotic designs, which has boosted revenue due to better customer-centric products.

Q2: What are the sales volume numbers for tiles?

A2: Our sales volume grew by approximately 15% in domestic and international markets. While I can't provide exact figures, volumes reflect our increased operations and strong market presence, leading to a 5% increase in value amidst a growing demand.

Q3: What is the current Average Selling Price (ASP) of your tiles?

A3: Our current ASP for tiles is around Rs. 360 per square meter. This reflects the shift to larger formats and includes our export lines, which previously had a realization of Rs. 399 per square meter last year.

Q4: What is expected in terms of your revenue growth by FY 2031?

A4: We aim to reach a revenue of Rs. 6,000 crores by 2031. We're planning for a significant growth trajectory, enhanced by new product lines and a focus on brand presence which help sustain double-digit growth annually over this period.

Q5: How much capex do you anticipate for the coming year?

A5: For this year, we expect a total capex of around Rs. 25 crores, primarily for maintenance and minor expansions. Next year, we project an increase to approximately Rs. 40 crores as we ramp up for new product lines and enhance warehouse capacity.

Q6: What percentage of your sales currently comes from trading versus own manufacturing?

A6: About 20% to 30% of our sales consist of trading and outsourcing, while roughly 65% to 70% comes from our own manufacturing operations. We continue to focus on enhancing our manufacturing capabilities.

Q7: With your strong international presence, what do you project for export growth?

A7: We foresee exports increasing from 15% to around 20% of total revenue, capitalizing on greater acceptance and demand in international markets due to improved pricing strategies amidst favorable trade conditions.

Q8: In which regions do you see the strongest performance for your tiles?

A8: Our revenue distribution shows the strongest performance in the west at around 35%, followed by the south at 25%, while the north and east both account for 25% and 15%, respectively, demonstrating a balanced growth across the country.

Q9: Could you detail the competitive landscape and how you maintain your edge?

A9: Our investment in technology, like the dual digital printing plants, and maintaining a strong retail presence differentiates us. Unlike competitors, we've focused on enhancing our export market and establishing localized showrooms abroad, which have been vital in sustaining growth.