Carysil H1 profit after MI rose 19.6% to Rs 59.8 crore

Carysil reported consolidated H1 FY27 profit after MI of Rs 59.8 crore, up 19.6% from Rs 50.0 crore in H1 FY26, as revenue increased 15.0% to Rs 537.9 crore. However, the Q2 FY27 table’s stated 4.3% decline in profit after MI conflicts with the rupee values printed alongside it.

How did Carysil perform in H1 FY27?

Carysil’s consolidated H1 FY27 revenue rose 15.0% to Rs 537.9 crore from Rs 467.7 crore in H1 FY26, while total income increased 15.2% to Rs 542.8 crore from Rs 471.3 crore. The difference included a foreign-exchange gain of Rs 4.9 crore in H1 FY27, compared with Rs 3.6 crore a year earlier.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 17.6% to Rs 110.1 crore from Rs 93.6 crore. EBITDA margin rose to 20.3% from 19.9%, an increase of 42 basis points, where 100 basis points equal one percentage point. Profit after tax grew 21.3% to Rs 61.1 crore, while profit after MI increased 19.6% to Rs 59.8 crore.

Gross profit rose 19.0% to Rs 294.9 crore in H1 FY27 from Rs 247.8 crore, lifting gross margin to 54.3% from 52.6%. Employee expenses increased 13.1% to Rs 49.1 crore and other expenses increased 22.4% to Rs 135.7 crore, while finance cost declined 8.0% to Rs 9.4 crore from Rs 10.2 crore.

What happened to Carysil’s Q2 FY27 profitability?

Carysil reported Q2 FY27 revenue of Rs 275.7 crore, up 14.6% from Rs 240.7 crore in Q2 FY26, but EBITDA rose at a slower 9.3% to Rs 54.1 crore. EBITDA margin consequently declined to 19.4% from 20.3% a year earlier, despite gross margin increasing to 53.9% from 52.5%.

Carysil’s profit after MI was Rs 28.4 crore in Q2 FY27, compared with Rs 31.4 crore in Q1 FY27, a sequential decline of 9.7% stated in the presentation. The Q2 table labels the year-on-year movement as a 4.3% decline, but it also lists Q2 FY26 profit after MI as Rs 27.2 crore, below the Rs 28.4 crore Q2 FY27 amount. The percentage label and displayed values therefore do not agree.

Carysil’s Q2 operating cost movement was faster than revenue growth in one major line item. Other expenses rose 23.5% year on year to Rs 71.0 crore, against the 14.6% increase in revenue, while employee expenses rose 16.2% to Rs 24.7 crore. EBITDA was also lower than the Rs 56.0 crore recorded in Q1 FY27 even though Q2 total income increased to Rs 278.0 crore from Rs 264.8 crore.

Which products and markets changed Carysil’s revenue mix?

Carysil’s quartz sinks accounted for 52.5% of H1 FY27 revenue, up from 49.2% in H1 FY26, making them its largest disclosed product category. Stainless-steel sinks increased their share to 11.6% from 9.9%, while surfaces declined to 23.9% from 26.3% and kitchen appliances and others declined to 12.1% from 14.6%.

Quartz-sink volume rose 8.2% to 419,000 units in H1 FY27 from 387,000 units, while steel-sink volume increased 12.0% to 96,000 units from 86,000. Faucet volume posted the fastest disclosed H1 increase, rising 25.1% to 23,000 units from 18,000. Kitchen appliances and others increased 6.9% to 20,000 units from 19,000.

Carysil’s UK revenue share remained its largest disclosed geographic contribution at 31.1% in H1 FY27, though it fell from 34.2% in H1 FY26. The US share increased to 27.6% from 25.6%, and India’s share rose to 21.1% from 18.8%. Carysil Products Limited reported revenue of GBP 6.2 million against GBP 5.5 million, while Carysil Surfaces Limited reported GBP 5.8 million against GBP 7.0 million.

What capacity additions does Carysil plan by end-FY27?

Carysil reported quartz-sink capacity utilisation of 92% in Q2 FY27 and 90% in H1 FY27, while steel-sink utilisation was 91% and 85%, respectively. The company said the addition of 250,000 quartz-sink units a year remains on track for commissioning by end-FY27.

Carysil said its kitchen-appliance expansion across hobs, ovens, microwaves and food-waste disposers is expected to begin commercial operations by end-FY27. Management also said the project would double appliance capacity to 100,000 units a year, while the faucet facility is planned to expand from 50,000 to 100,000 units a year by end-FY27.

Conclusion

Carysil’s first-half results showed revenue, EBITDA and profit after MI rising faster than the comparable H1 FY26 period, with profit after MI reaching Rs 59.8 crore and EBITDA margin reaching 20.3%. The second quarter showed a different pattern: revenue increased to Rs 275.7 crore, but EBITDA fell from the preceding quarter and margin declined to 19.4%.

The next results will show whether Carysil can restore the Q1 FY27 EBITDA margin of 21.2% while managing other expenses, which reached Rs 71.0 crore in Q2 FY27. Investors can also watch progress toward the end-FY27 commissioning targets for 250,000 additional quartz-sink units, 100,000 appliance units and 100,000 faucet units annually, as well as any clarification of the Q2 profit-after-MI percentage label.