Asian Granito India Limited , a leading manufacturer of tiles and bathware solutions, has completed a strategic divestment while reporting robust financial performance for the second quarter ended September 30.

Strategic Transaction Completed

The company has successfully completed the disposal of 25% equity stake in AGL Proteins Private Limited on December 31, 2025. This transaction, which was previously approved by the board in November 2025, has converted AGL Proteins from a subsidiary to an associate company.

Financial Highlights

Q2 Performance

The company demonstrated strong operational performance with significant improvements in profitability metrics.

H1 Performance

Operational Performance

Strategic Developments

Beyond the AGL Proteins divestment, the company has undertaken several strategic initiatives:

• International Expansion: Approved increased capital contribution in Harmony Surfaces Thailand Limited, a wholly owned subsidiary incorporated in June 2024
• Growth Vision: Launched Enhanced Strategic Integration Programme (ESIP) with long-term vision of achieving ₹6,000.00 crore in total revenue
• Brand Enhancement: Appointed Bollywood actor Ranbir Kapoor for "Premium ka Pappa" campaign

Management Commentary

Kamlesh Patel, Chairman and Managing Director, stated: "We are delighted that the composite scheme of arrangement approved by the NCLT has now become effective — a significant milestone for the company. Our Q2 performance reflects our strength — driven by operational discipline and a clear focus on sustainable growth. With expansion of our retail and global footprint, launch of powerful brand campaigns we aim to become a truly global brand and achieve revenue target of Rs. 6,000 crore over the next 4-6 years."

Future Outlook

Asian Granito India Limited continues to focus on operational efficiency, brand strengthening, and strategic expansion. The company aims to position itself as a leading player in the luxury surfaces and bathware solutions market, with a presence in over 100 countries and an extensive distribution network across India.

The company operates in tiles, marble, quartz, and bathware segments, maintaining its commitment to sustainable growth while optimizing its portfolio through strategic transactions like the AGL Proteins divestment.

Asian Granito India Limited has reported near-complete utilization of its rights issue proceeds, with only a small fraction remaining unused, according to the company's latest monitoring agency report for Q2 FY2026.

Fund Utilization Overview

The company raised INR 422.17 crore through its rights issue, of which INR 416.93 crore has been fully utilized. The remaining INR 5.06 crore is currently invested in fixed deposits and current accounts.

Key Allocations

The major allocations of the funds include:

Project Delays

While the company has made significant progress in fund utilization, several projects have experienced delays:

1. Future Ceramic Private Limited: Completed with a 9-month delay due to heavy and delayed monsoons in Morbi.
2. AGL Sanitaryware Private Limited: Commissioned with a 9-month delay, also attributed to monsoon-related issues.
3. Working Capital for Greenfield Projects: Delayed by 9 months due to changes in the object clause and subsequent shareholder approvals.
4. Stock Point for Trading: Delayed by 12 months due to challenges in identifying suitable options.
5. Display Center in Ahmedabad: Pushed back by 12 months due to difficulties in finding an appropriate property.

General Corporate Purposes

Of the INR 94.75 crore allocated for general corporate purposes:

• INR 8.40 crore was used for payments to creditors, utilities, and statutory dues.
• INR 86.35 crore was provided as loans and advances to the subsidiary Crystal Ceramic Industries Limited for term loan repayment.

Monitoring Agency's Comments

ICRA Limited, the appointed monitoring agency, reported no material deviation from the stated objectives of the issue. However, they noted that the construction of the display center in Ahmedabad is yet to commence, despite the company providing a refundable security to the EPC contractor for land identification.

Conclusion

While Asian Granito has successfully utilized the majority of its rights issue proceeds, the company faces challenges in timely project completion. Shareholders and potential investors should note these delays and monitor their potential impact on the company's future performance and growth strategies.