Carysil Limited: Accelerating Momentum with Strategic Expansion and Global Reach

Carysil Limited, a prominent player in kitchen and bath solutions, has reported a robust performance for Q2 and H1 FY26, demonstrating accelerating momentum despite global economic headwinds. The company's consolidated total income for H1 FY26 reached ₹471.3 crore, marking a significant 15.2% year-on-year growth. This impressive top-line expansion was complemented by strong profitability, with EBITDA growing by 26.3% to ₹93.6 crore and PAT after Minority Interest surging by 53.2% to ₹50.0 crore for the half-year. These figures underscore Carysil's strong operational execution and its ability to capitalize on evolving market trends.

The company's performance was primarily driven by its core product categories. The Quartz Sinks segment continued its strong growth trajectory, marking its fifth consecutive quarter of robust expansion. Volumes in Quartz Sinks increased from 1.59 lakh units in Q2 FY25 to 1.97 lakh units in Q2 FY26, fueled by substantial order inflows from leading global clients and improved capacity utilization, which stood at approximately 88% in Q2 FY26. Similarly, the Stainless Steel Sinks segment delivered steady growth, with volumes rising from 40.4k units to 43.4k units in Q2 FY26, operating at a high capacity utilization of around 95%.

Financial Highlights (Consolidated)

The Smart Kitchen and Built-in Appliances category is rapidly emerging as a key growth driver, experiencing healthy year-on-year growth of 25.5% in volumes and 30.5% in revenue terms. This growth is attributed to rising urbanization, premiumization trends, and a growing preference for technologically advanced, aesthetically designed kitchens in India. The company's strategic partnership with large retail chains and OEM businesses continues to scale up, reinforcing its position as a trusted supplier.

Strategic Initiatives and Global Footprint

Carysil is proactively undertaking significant capacity expansions to meet the escalating global and domestic demand. For Quartz Sinks, an additional 1 lakh units of manufacturing capacity are being added, expected to be operational by December '25, with an estimated capex of ₹5 crore. In the Stainless Steel Sinks segment, capacity is being expanded by 70,000 units, aiming for a total capacity of 250,000 units by Q4 FY26. To support future growth, the company acquired approximately 7400 sq. mt. of additional land in Bhavnagar, Gujarat, for an investment of ~₹6 crore, with plans to add another 150,000 units of stainless steel sink capacity in FY'26-'27.

In the kitchen appliances segment, Carysil is setting up a new manufacturing and assembly line, including an integrated glass processing plant. This will add 50,000 units per annum, bringing the total capacity to 1.5 lakh units, with an estimated capex of ₹25 crore, expected to commence operations by Q1 FY27. This investment aims to enhance quality control, aesthetics, and cost-competitiveness, particularly for glass-finish hobs and hoods.

Carysil's overseas subsidiaries have demonstrated resilient performance. Carysil USA Inc. notably turned PAT positive in Q2 FY26 and delivered positive EBITDA of ₹6.0 crore in H1 FY26, a significant improvement from a loss of ₹30 lakh in H1 FY25. This turnaround reinforces the company's global positioning. While UK subsidiaries faced some revenue degrowth due to the slowing economy, Carysil is strategically diversifying its Surfaces business in the UK into harder surfaces like quartz, marble, and stone, recognizing the 90% market share of hard surfaces globally.

India Market Focus and Future Outlook

The Indian market is a key focus area for Carysil. The company is developing a vision to grow its India business to ₹500 crore, supported by onboarding a new leadership team for sales and marketing. Initiatives include strengthening the distribution network, adding new dealers, showrooms, and opening experience centers in strategic locations like NCR and Hyderabad. The Faucet division is also performing well, with capacity utilization at 75% and plans to activate its full 100,000 units per annum capacity in the coming financial year, including new bathroom faucet assembly.

Management maintains a growth guidance of 15% annually for the next 3-4 years and an EBITDA margin guidance of 18-20%, even amidst tariff challenges. The company is actively addressing the 50% US tariff impact by taking necessary measures to support customers and navigate the situation effectively. Carysil is also benefiting from the global 'China plus' strategy, which sees manufacturing shifting from China to India, positioning the company as a preferred supplier for high-quality stainless steel sinks.

Carysil Limited's Q2 and H1 FY26 performance reflects a company in a sweet spot, combining advanced materials, elegant design, and global quality standards with Indian manufacturing excellence. With robust demand, expanding capacities, and a clear roadmap for long-term growth and value creation, Carysil is well-positioned to accelerate its momentum and solidify its standing as a global leader in kitchen and bath solutions.