Asian Granito reported a consolidated net profit of ₹807.06 lakh for the quarter ended June 30, 2026, reversing a loss of ₹3,267.25 lakh recorded in the previous quarter. Standalone net profit stood at ₹223.85 lakh compared to a loss of ₹1,425.50 lakh in the prior period. The improvement comes after temporary plant closures due to US anti-dumping duties and gas supply shortages in the previous quarter, though management noted that higher gas prices in the current quarter adversely impacted profitability.

The Board of Directors approved the unaudited standalone and consolidated financial results at its meeting held on August 11, 2026. The results were reviewed by the Audit Committee and subjected to a limited review by statutory auditors R R S & Associates, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

Consolidated revenue from operations declined slightly to ₹53,094.98 lakh from ₹53,849.50 lakh in the quarter ended March 31, 2026. However, this represents a significant increase from ₹41,315.32 lakh in the same quarter of the previous year. Total income for the consolidated entity was ₹53,239.65 lakh. Expenses totaled ₹52,258.22 lakh, driven by power and fuel expenses of ₹7,130.56 lakh and purchase of stock-in-trade of ₹24,933.04 lakh. Profit before tax was ₹981.43 lakh, with total tax expense amounting to ₹173.79 lakh.

Standalone revenue from operations was ₹27,776.57 lakh, down from ₹29,458.27 lakh in the prior quarter but up from ₹25,963.66 lakh year-on-year. Other income turned positive at ₹61.00 lakh, following a reversal of ₹1,339.29 lakh in interest income in the previous quarter related to intra-group transactions with wholly owned subsidiaries.

Operational Updates and Regulatory Matters

The company highlighted that the previous quarter’s results were heavily affected by US anti-dumping duties on certain products, which led to a two-month closure of its Quartz plant. Additionally, gas supply shortages in Morbi due to the West Asia conflict forced temporary shutdowns of ceramic plants. These operations have resumed in the current quarter. However, increased gas prices continue to pressure margins, making year-on-year comparisons less meaningful.

Regarding corporate restructuring, the National Company Law Tribunal (NCLT) had sanctioned Scheme 1 and Scheme 2 involving demergers and amalgamations with entities such as AGL Industries Limited and Adicon Ceramics Limited. These schemes became effective from October 16, 2023, and were accounted for retrospectively using Ind AS 103. The paid-up equity share capital stands at ₹29,647.53 lakh.

What the Numbers Show

The sharp turnaround in net profit is primarily operational, stemming from the resumption of production after forced closures, rather than a surge in demand. While revenue remained relatively flat sequentially on a consolidated basis, the elimination of one-time negative adjustments in other income and the return to normal production levels drove profitability back to positive territory. Investors should note that the ongoing volatility in energy costs poses a continued risk to margin stability in subsequent quarters.

Asian Granito India Limited has approved the conversion of an outstanding loan and reimbursement of expenses receivable from its wholly owned subsidiary, Harmony Surfaces Marbles TR. LLC S.P, Sharjah (HSM Sharjah), into equity shares. The Board of Directors at its meeting on 15 July, 2026, sanctioned the subscription to 372 equity shares at an issue price of AED 3,496 per share, aggregating to AED 13,00,430 (approximately ₹3.38 crore). This strategic move will enable the subsidiary to raise additional funds for business expansion and operational requirements.

The transaction involves the conversion of the company's loan into equity, ensuring HSM Sharjah remains a wholly owned subsidiary post-conversion. The acquisition is considered a related party transaction conducted at arm's length, based on a valuation report, with no interest from the promoter or promoter group. The indicative time period for the completion of this acquisition is on or before 31 October, 2026.

Concurrently, the Board took note of a proposed fresh issue of equity shares by HSM Sharjah to third-party investors. This issuance will result in the dilution of Asian Granito India Limited's shareholding from 100% to 51%. Consequently, HSM Sharjah will cease to be a wholly owned subsidiary and will become a subsidiary of the company, with Asian Granito retaining majority ownership and control.

HSM Sharjah is engaged in trading activities of various ceramic and porcelain products like marble and tiles. Incorporated on 11 May, 2023, the entity reported a turnover of AED 3,17,48,106 as on 31 March, 2026. During the preceding financial year, the subsidiary contributed a turnover of ₹77.52 crore, accounting for 4.17% of the consolidated turnover of Asian Granito India Limited.

The fresh issuance of shares to identified investors, who do not belong to the promoter or promoter group, does not constitute a related party transaction. The change in shareholding structure is aimed at bolstering the financial position of HSM Sharjah while allowing the parent company to maintain controlling interest.

Financial and Operational Details of HSM Sharjah