Summary
Asian Granito India Limited - Q3 FY 2026 Earnings Call Summary Thursday, February 12, 2026, 4:00 PM
Event Participants
Executives 3 Jitendra Lodha (GM Finance & Accounts), Kamlesh Patel (Chairman & Managing Director), Dhruti Trivedi (Company Secretary)
Analysts 6 Anshul Khare (Individual Investor), Ashwath Ranjan (Arihant Capital), Deep Doshi (Individual Investor), Deepak Poddar (Sapphire Capital), Sachin Ujralia (Individual Investor), Yash Nisar (Individual Investor)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (Consolidated) | ₹423 crores | +15.8% YoY; Driven by improved product mix (large formats) and retail expansion. |
| EBITDA | ₹40.8 crores | +210% YoY; Significant margin expansion due to lower gas costs and higher realization products. |
| PAT (9-Month) | ₹43.83 crores | Turnaround from a loss of ₹4.97 crore in the previous 9-month period. |
| Average Selling Price (Tiles) | ₹360 per sq. mtr. | Growth supported by big format exports (₹408/sq. mtr.) vs. domestic (₹265/sq. mtr.). |
| Gas Cost % of Total Cost | 22.43% | Management noted significant savings due to shifts to propane gas over Sabarmati/Gujarat gas. |
| Ad Spend (Annual) | ₹25 crores | Reduced from ₹40 crores (initial brand launch) to ₹25 crores as brand presence matures. |
| Export Revenue % | 15% | Strategic focus on international stock points (Senegal, London, Dubai) to drive higher margins. |
| Capacity Utilization | 70% - 90% | Old plants at 80-90%; New slab plants at 60%; Sanitary ware at 50%. |
Geographic & Segment Commentary
- International Markets: AGL operates in 100 countries with physical stock points/showrooms in London, Dubai, Senegal, and Indonesia. Management expects export share to increase to 18-20% of total revenue, benefiting from the 18% US anti-dumping duty on India vs. 34% on China.
- Tiles & Large Formats: Significant shift toward GVT (Glazed Vitrified Tiles) which now represents nearly 50% of sales. The company is transitioning from small traditional sizes to 6x12 feet slabs using SACMI Continua technology to improve realizations.
- Sanitaryware & Bathware: The recently commissioned plant has reached 50% utilization. Management plans to transition this from a single-line to a double-line operation as market penetration increases.
- Quartz & Engineered Marble: Quartz saw a slowdown due to US market disruptions but is rebounding with robotic designs. Third-line utilization remains low at 10%, but management expects 20% growth in this segment following duty regularizations.
Company-Specific & Strategic Commentary
- Retail Transformation: Shifted from a project-heavy model (50% project) to a retail-focused model (45% retail, 55% institutional/Govt). Retail inventory is managed at 3-4 months to provide ready availability for dealers.
- Asset-Light Growth: Management explicitly stated they will not undertake greenfield CAPEX in ceramics for the next 3-4 years. Future growth will be driven by an “outsourcing model” where AGL provides the design, technology, and branding to partner plants.
- Exclusive Showrooms: Currently operating 277 exclusive showrooms with a target to reach 300 by March 2026 and 500 in the medium term. The “AGL Times Premium” club was launched for high-volume dealers (>₹1 crore/year).
- Energy Mix: Strategic shift to propane gas has provided a ₹4-5 cost advantage over traditional piped natural gas (PNG), contributing to the 210% EBITDA growth.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue | ₹6,000 crores by FY 2031 | Implies a ~28% CAGR; to be driven by building materials diversification and asset-light outsourcing. |
| Revenue Growth | Double-digit for FY 2027 | Management anticipates Q4 will be stronger than Q3 due to industry seasonality. |
| CAPEX | ₹40 crores for FY 2027 | Budgeted primarily for showroom expansions, international warehouses, and digital printing upgrades. |
| Export Mix | 18% to 20% of Revenue | Expected increase due to favorable trade dynamics in the US market. |
Risks & Constraints
| Risk | Context |
|---|---|
| Inventory Costs | Transitioning to a retail model requires 3-4 months of inventory (vs. lower for projects). This ties up working capital to ensure 15-20 SKU availability for truck-load orders. |
| Export Volatility | While US duties favor India, global freight charges and anti-dumping duties in various regions remain a source of margin pressure. |
| Overcapacity in Morbi | Shutdown of ~300 wall tile units in Morbi highlights industry-wide pressure. AGL is mitigating this by moving to high-technology large formats where competition is lower. |
Q&A Highlights
Operational Performance & Mix
- Question: What is driving growth when peers are flat? (Deep Doshi)
- Answer: Investment in large format plants (800x2400mm, 1200x2400mm) and high-end robotic quartz designs. Realization is higher at ₹408 (Export) vs. ₹265 (Domestic) for similar products. (Kamlesh Patel)
Manufacturing Strategy
- Question: Will you add more greenfield capacity for the ₹6,000 cr target? (Ashwath Ranjan)
- Answer: No new ceramic greenfield CAPEX. The company will use an outsourcing model, managing design and innovation while utilizing external technology plants for volume. (Kamlesh Patel)
Dealer Network & Loyalty
- Question: How are you managing dealer touchpoints? (Ashwath Ranjan)
- Answer: Focusing on quality over quantity. Created “AGL Times Premium” for dealers selling over ₹1 crore. Showroom expansion is funded via a ₹1500/sq. ft. dealer deposit model. (Kamlesh Patel)
Key Takeaway
Asian Granito delivered a strong Q3 FY26, characterized by a 210% EBITDA surge and a 16% revenue growth, significantly outperforming flat industry peers. This performance was underpinned by a strategic pivot toward retail (now 45% of mix) and high-value large-format slabs. The company successfully turned around its bottom line, reporting a 9-month PAT of ₹43.83 crores against a prior loss. Looking ahead, AGL has laid out an ambitious “Vision 2031” to reach ₹6,000 crores in revenue via an asset-light outsourcing model and diversification into broader building materials. While higher inventory levels for the retail segment and global export volatility remain watch points, the shift to lower-cost propane gas and a favorable US duty structure for Indian tiles provide a strong tailwind for sustained margin improvement.
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