Synopsis:- Carysil Limited reported consolidated revenue of Rs.924 crore and PAT after minority interest of Rs.98.2 crore for FY26, growing 13.3 percent and 54.1 percent year-on-year respectively driven by a 256 basis point EBITDA margin expansion to 19.9 percent, a sharp reduction in finance costs, and operating cash flow that more than doubled to Rs.108.7 crore as working capital discipline improved markedly.
Shares of a Bhavnagar-based kitchen products manufacturer came into focus after it disclosed its Q4 and full-year FY26 investor presentation filed under Regulation 30 with BSE and NSE. The company, which manufactures composite quartz sinks, stainless steel sinks, kitchen appliances, and bath products across six plants in India and overseas, posted one of its better earnings performances in recent years with PAT growth outpacing revenue growth by a wide margin, pointing to operating leverage beginning to materialise at scale.
With a market capitalisation of Rs. 2,964.29 crore, the shares of Carysil Limited were last recorded at Rs.1,045.55 per share, up 2.27 percent from its previous close of Rs.1,022.3. The stock trades at a P/E of 29.38.
Consolidated revenue grew 13.3 percent to Rs. 924 crore in FY26 from Rs. 815.6 crore in FY25. EBITDA expanded 30.6 percent to Rs.185 crore, with the margin improving 256 basis points to 19.9 percent, the best EBITDA margin the company has reported since the FY21–22 period of peak demand. PAT after minority interest came in at Rs.98.2 crore versus Rs.63.7 crore in FY25, up 54.1 percent.
On the standalone basis, which reflects the India manufacturing entity, revenue grew 20.1 percent to Rs.504.6 crore and PAT grew 72.6 percent to Rs.63.7 crore, a sharper improvement that reflects the operating leverage embedded in the domestic manufacturing base.
Q4 FY26 consolidated performance was similarly strong: revenue grew 14.5 percent year-on-year to Rs.233.7 crore, EBITDA expanded 34 percent to Rs.48 crore (margin at 20.3 percent), and PAT after MI grew 45.7 percent to Rs.27.1 crore. Q4 was also meaningfully better than Q3 sequential PAT growth of 28.4 percent suggests the momentum was building through the year rather than front-loaded.
Where the Margin Expansion Came From
The EBITDA improvement was not revenue-driven alone. Finance costs fell 15.8 percent consolidated from Rs.23.4 crore in FY25 to Rs.19.7 crore in FY26 as the company repaid debt. Consolidated borrowings marginally increased from Rs.265.5 crore (FY25) to Rs.269.6 crore at March 2026 at the current/non-current combined level, but the standalone picture is sharper: standalone long-term borrowings fell from Rs.16.9 crore to Rs.8.8 crore, and the net debt-to-equity ratio came down to 0.34 from 0.37 in FY25. Interest coverage strengthened from 4.8x to 7.7x in a single year, the most significant improvement in the ratio since FY21.
Operating cash flow nearly doubled to Rs.108.7 crore from Rs.60.2 crore in FY25, driven by a Rs.26 crore reduction in working capital drag. This is the variable that had historically lagged earnings: in FY24 and FY25, working capital absorbed Rs.60–70 crore despite growing EBITDA, suppressing cash conversion. FY26 marks the first year in recent history where the CFO-to-EBITDA ratio improved meaningfully, reaching approximately 0.59.
Capacity and Volume
Quartz sink capacity utilisation ran at approximately 78 percent in Q4 FY26 and across FY26 as a whole tight enough to justify the ongoing expansion from 1 million to 1.25 million units per annum, being funded with approximately Rs.50 crore and targeted for completion by FY27. The capacity addition is underpinned by a long-term supply agreement signed in 2025 with Karran USA for 150,000 quartz sinks annually, and continued supply commitments to IKEA and Grohe.
Stainless steel sink capacity utilisation was even higher, approximately 93 percent in FY26 with 70,000 additional units expected to come online in Q1 FY27. Kitchen appliance manufacturing is in a phased build-out: Phase 1 (chimneys, 50,000 units) is operational, with Phase 2 covering hobs, ovens, microwaves, and food waste disposers expected by FY27, taking total capacity to 100,000 units per annum. Faucet assembly is also being doubled from 50,000 to 100,000 units by FY27.
Geographically, India’s contribution to consolidated revenue grew from 13 percent in FY25 to 14 percent in FY26, while the US held at 9 percent and the UK declined from 40 percent to 33 percent partly reflecting currency movements across the overseas subsidiaries. UK revenue at Carysil Products Limited and Carysil Surfaces Limited declined slightly in GBP terms (11.3 mn and 12.9 mn GBP respectively versus 12 mn and 14.9 mn in FY25), which is worth monitoring given the UK’s historically outsized revenue share.
Business Overview
Incorporated in 1987 in collaboration with Germany’s Schock GmbH, Carysil Limited is Asia’s largest and the world’s fourth-largest quartz kitchen sink manufacturer. The company operates four manufacturing plants in Bhavnagar, Gujarat, and two overseas plants, selling across 55+ countries under the Carysil and Sternhagen brands. It holds long-term supply arrangements with IKEA, Grohe, and Karran USA
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