Carysil
Q4-2025 concall
FUTURE GROWTH TRIGGERS
1…Quartz sink
=Quartz sinks grew at a 12% CAGR
A…Kaaran(lowe’s business via kaaran)
=Significant contract via customer KARRAN with a major US retail chain (Lowe’s) to supply 150,000 quartz sinks across 1,800+ stores.
B…Ikea(for quartz sink)
=Bidding for a global tender from IKEA which can increase their market share with IKEA from 25% to 75% in quartz sink. This is a non US tender. Final quality check and approval can happen within 60 days
=Currently 10% of their revenue comes from IKEA.
2…Steel sink
=Three-year CAGR: 20%, scaling to 155,000 units in FY25
=Breakthroughs with Kohler India, Hafele, ongoing supplies to IKEA (scored high in quality tests), and rising inquiries from US/EU.
=US and EU tariffs on China/Vietnam have resulted in “overwhelming response” for Indian steel sinks.
=Product Innovation: Introduction of 1.2mm thickness steel workstations (20% above standard) for differentiation; investment in second PVD machine for both domestic and export demand.
3…Kitchen faucet business
It grew 40% over last few years, with strong growth expected in FY26
4…Countertop & Surface Solutions
=New Category: Investment in India’s first organized kitchen and bathroom countertop fabrication facility (Delhi + 2 more centers this year).
=Cary Stone: Launching proprietary surface brand leveraging fabrication tech from UK/US subsidiaries for seamless sink-countertop integration.
5…CAPEX
=CAPEX: Rs 45 crore in FY25 (Rs 12 crore in Q4 alone), mainly for machinery, equipment, and moulds.
=CAPEX Plan: Rs 50 crore for FY26 (expansion across sinks, fabrication, appliances); further expansion to be decided based on demand sustainability.
A…Quartz sink
=Restarting Plant-4 (250,000 units capacity), which had been shut due to a downturn. Immediate investments earmarked for new moulds and infrastructure; additional capacity enhancement will be reviewed post ramp-up.
B…Steel sink
CAPEX of Rs 7-10 crore to add 70,000 units (total capacity to reach 250,000 units), operational by Q3 FY26.
C…Appliances & Faucets
Assembly/manufacturing of kitchen hoods and faucets commenced; current faucet assembly at 30,000-35,000 units/year, targeting 100,000 by year-end.
6…Geography
A…UAE
=Business Mix Shift: 80% appliances, 20% sinks (reversed from earlier).
=won a major contract with Emaar, UAE’s biggest developer.
=Showroom Expansion: Second showroom (3,000 sq. ft.) opening in Sharjah on Sheikh Zayed Road.
=The UAE subsidiary delivered strong growth in the appliance segment.
B…UK
=Carysil and its subsidiaries now among the top three kitchen category performers.
=Exclusive supply agreement with Howdens (largest UK kitchen manufacturer, 80,000-100,000 sinks/year).
C…USA
=Confident of turning profitable in FY26
D…Domestic
=Dealer Network: Expanded from 1,500 to 4,000 dealers; gallery count to grow from 140 to 200 by year-end.
=Domestic Revenue Target: Ambitious plan to grow India revenue by 25-30% to Rs 170-180 crores in FY26, with a mid-term vision to double to Rs 300 crores and long-term to Rs 500 crores.
=Distribution: 80% B2C, 20% B2B; leveraging existing channels but also tying up with large electronics retailers (e.g., G Mart in Kerala)
10…Future growth guidance
=Revenue Guidance: 15% YoY growth targeted for FY26 (~Rs 925-930 crore), with potential to reach Rs 1,000 crore annualized run-rate by Q3/Q4.
=EBITDA Margin Guidance: Management reiterated 18-20% margin band
Disc…invested
