Carysil Limited Q3 FY26 Earnings Call Summary

Summary

Carysil Limited - Q3 FY2026 Earnings Call Summary Thursday, February 05, 2026, 4:00 PM

Event Participants

Executives 2 Anand Sharma (Executive Director & Group CFO), Chirag Parekh (Chairman & Managing Director)

Analysts 8 Avijit Sheel, Chintan Shah, Mehul Panjwani, Naitik, Naman Parmar, Pritesh, Resha Mehta, Sagar Jethwani

Financials & KPIs

Geographic & Segment Commentary

• Quartz Granite Sinks: Sales volume increased by 27% YoY; additional capacity is expected to be operational by April 2026. The segment benefits from a dominant 70-80% share of IKEA’s global quartz sink business.
• Stainless Steel Sinks: Volume grew by 23% YoY with capacity expanding from 180,000 to 250,000 units by April 2026. Management is targeting increased OEM opportunities in India with brands like Kohler and Hafele.
• Built-in Appliances & Faucets: Chimney capacity reached 50,000 units with Phase 2 expansion to 100,000 units (including hobs/ovens) underway. Faucet manufacturing is focusing on lead-free stainless steel for US/EU export compliance.
• Surfaces (US & UK): US fabrication margins improved from 35% to 50% via a “cut less, make more” strategy focusing on exotic stones. UK remains soft due to macro headwinds, but the company is launching a Manchester experience center to drive brand sales.

Company-Specific & Strategic Commentary

• US Trade Deal: The bilateral trade tariff between India and the US was reduced to 18% (from a 50% base). This allows Carysil to roll back the 15-20% discounts previously offered to US customers to remain competitive.
• Carysil 2.0 Vision: The company plans to reach a $200 million revenue target (adding $100 million to current levels) over the next few years. A 5-year strategy to achieve ₹500 crores in domestic revenue will be unveiled on April 4, 2026.
• Emerging Markets: Rapid expansion in the Middle East with experience centers in Muscat and Sharjah. Revenue in the UAE is projected to grow from near zero to ₹30 crores in 3 years.
• Digital & D2C: Strengthening e-commerce teams and launching the Carysil bathroom brand through a Direct-to-Consumer model to capture high-growth online segments.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

US Pricing Strategy

• Question: How will pricing change in the US following the tariff reduction? (Sagar Jethwani)
• Answer: Discounts of 15-20% will be rolled back on a pro-rata basis with immediate effect as the effective tariff dropped from 50% to 18% (Chirag Parekh).

Margin Drivers

• Question: What led to the sharp gross margin expansion this quarter? (Vaidik Bafna)
• Answer: Primarily the drop in imported MMA prices from $2.02 in April to $1.50 in December; this pricing is expected to hold for the next 2-3 months (Anand Sharma).

UK Business Strategy

• Question: How is the company addressing the degrowth in the UK? (Resha Mehta)
• Answer: We have rejuvenated the team with senior hires from competitors and are launching a major showroom in Manchester to push the Carysil brand directly (Chirag Parekh).

Customer Concentration

• Question: What is the share of business from major clients like IKEA and Kraus? (Chintan Shah)
• Answer: Large customers including IKEA and US-based partners account for over 60% of the total business (Anand Sharma/Chirag Parekh).

Key Takeaway

Carysil delivered a resilient Q3 FY26, characterized by 27% volume growth in its core Quartz sink segment and a significant PAT increase of 69.7% YoY. The quarter was defined by a successful navigation of 50% US tariffs through strategic discounting, which is now being reversed following a bilateral trade agreement lowering tariffs to 18%. Strategically, the company is transitioning toward “Carysil 2.0,” aiming to double its revenue to $200 million by leveraging new capacities in steel sinks (250k units) and appliances (100k units) arriving in April 2026. While the UK surfaces market remains a drag due to economic softness, the expansion into the Middle East and a robust OEM pipeline with brands like Smeg and Kohler provide diversification. Management remains confident in a 15-20% growth trajectory, underpinned by favorable raw material costs and a maturing “Kitchen, Bathroom, and Surfaces” (KBS) integrated hub strategy.