Asian Granito India Limited Revenue Rises 18.8% as PAT Falls 75%

Asian Granito India Limited reported Q2 FY27 consolidated revenue of ₹528.50 crore, up 18.8% year-on-year, but profit after tax fell about 75% to ₹5.22 crore as power and fuel expenses increased 53.3% to ₹106.96 crore. The result highlights the pressure that higher energy costs have placed on profitability despite continued sales growth.

What did Asian Granito India Limited report for Q2 FY27?

Asian Granito India Limited reported consolidated revenue from operations of ₹528.50 crore for the quarter ended September 30, 2026, compared with ₹444.75 crore in the restated corresponding quarter of FY26. Revenue was broadly stable sequentially, declining 0.5% from ₹530.95 crore in Q1 FY27.

The company’s consolidated profit after tax, or PAT, was ₹5.22 crore, compared with ₹21.17 crore in Q2 FY26. This represents a decline of roughly 75% from the year-ago period. PAT was also lower than ₹8.07 crore reported in the preceding quarter, indicating that profit pressure intensified even as revenue remained near the Q1 level.

For the first half of FY27, AGL reported consolidated revenue from operations of ₹1,059.45 crore, a year-on-year increase of 23.5% from ₹857.90 crore in H1 FY26. The half-year sales performance reflects continued demand and higher group-scale operations, although the Q2 profitability figures show that cost growth outpaced revenue growth during the quarter.

Why did AGL’s profit decline despite higher revenue?

AGL attributed the margin pressure primarily to higher power and fuel costs. Power and fuel expenditure rose to ₹106.96 crore in Q2 FY27 from ₹69.76 crore a year earlier, a substantially faster increase than the 18.8% growth in consolidated revenue.

The higher energy bill reduced operating profitability. Consolidated EBITDA stood at ₹27.75 crore, translating into an EBITDA margin of 5.25%, compared with 10.70% in the prior-year quarter. The decline in margin shows that the increase in input and operating costs was not fully offset through pricing or other cost-control measures during the period.

AGL said near-term cost pass-through challenges affected margins. The company nevertheless said it remained confident about underlying demand and its ability to manage the cost environment. The results do not provide a quantified timeline for margin recovery or specify future pricing actions.

On a net-profit basis, the impact was also pronounced. PAT as a share of Q2 revenue was approximately 0.99%, compared with roughly 4.07% in the year-ago period, based on the reported revenue and PAT figures. This left limited earnings conversion from a quarter in which revenue crossed ₹528 crore.

How does Q2 compare with AGL’s Q1 FY27 performance?

AGL’s Q2 revenue was almost unchanged from Q1 FY27, but its profitability weakened. Consolidated revenue was ₹530.95 crore in Q1 FY27, while EBITDA was ₹32.88 crore and the EBITDA margin was 6.19%.

The Q2 EBITDA of ₹27.75 crore was ₹5.13 crore lower than in Q1, and the margin narrowed by 0.94 percentage points. Consolidated PAT declined from ₹8.07 crore in Q1 to ₹5.22 crore in Q2, a sequential reduction of about 35%.

In Q1 FY27, the company had also cited higher fuel prices as a factor affecting consolidated results. Its Q1 revenue had increased 28.5% year-on-year to ₹530.95 crore, while subsidiary revenue rose 64.9% to ₹253.18 crore and accounted for 47.7% of consolidated revenue.

That earlier quarter also showed the effect of sales mix on margins. AGL said a higher share of traded-goods revenue affected the Q1 consolidated EBITDA margin, which was 6.19%, compared with 7.74% in Q1 FY26. Q2 therefore extends a period in which revenue growth has not translated proportionately into operating-profit growth.

What do the results mean for investors and operations?

The Q2 result shows that energy costs remain an important variable for AGL’s consolidated earnings. The company operates in tiles, marble, quartz and bathware, categories in which manufacturing and processing can require significant energy inputs. The 53.3% rise in power and fuel expense had a direct effect on operating and net margins in the reported quarter.

For investors, the figures present a contrast between sales momentum and profit conversion. H1 revenue increased 23.5% year-on-year, but Q2 PAT declined sharply. The immediate financial focus is therefore on whether AGL can limit input-cost pressure, improve cost pass-through, and restore margins while maintaining revenue growth.

The company markets its products through a pan-India dealer and distributor network and has an international presence. Its portfolio includes ceramic and vitrified tiles, GVT, double-charge and polished vitrified tiles, marble and quartz surfaces, and bathware. Its Q1 management commentary referred to capacity expansion, premiumisation, export order-book rebuilding and operating efficiencies as areas of focus.

The auditors’ limited review did not indicate material misstatements in the reported financial information. However, the company disclosed that the impact of an Income Tax Department search operation initiated in May 2022 remains unascertainable pending the finalisation of appeals. This remains a disclosed matter separate from the quarter’s operating performance.

What is the broader context behind AGL’s FY27 performance?

AGL entered FY27 after reporting consolidated revenue of about ₹1,858.06 crore in FY26. The first two quarters of FY27 produced consolidated revenue of ₹1,059.45 crore, placing revenue growth at the centre of the company’s reported financial performance so far this year.

The company’s Q1 FY27 PAT of ₹8.08 crore also marked a turnaround from a consolidated loss of ₹32.66 crore in Q4 FY26. However, the Q2 result demonstrates that the return to profit remains sensitive to operating costs, particularly gas, power and fuel expenses.

AGL’s stated strategy includes manufacturing capacity expansion and premiumisation. In Q1, Chairman Kamlesh B. Patel said the company was focused on improving realisations, scaling subsidiaries, rebuilding the export order book and pursuing operating efficiencies. These initiatives form the company’s stated operating priorities, but the Q2 filing does not quantify their financial contribution during the quarter.

Conclusion

Asian Granito India Limited delivered higher consolidated revenue in Q2 FY27 and sustained strong first-half sales growth, but sharply higher power and fuel costs reduced EBITDA margin to 5.25% and lowered PAT to ₹5.22 crore. The quarter underlines the importance of cost management and pricing discipline for the company’s earnings performance.

Investors will watch the company’s next reported results for evidence of energy-cost moderation, progress in cost pass-through and any improvement in EBITDA and net-profit margins. The pending appeal-related outcome connected with the May 2022 Income Tax Department search also remains an unresolved disclosed matter.