Asian Granito India Limited (AGL), a leading manufacturer of tiles and bathware solutions, has reported a robust financial performance for the second quarter ended September 30.

Financial Highlights

Q2 Performance

• Consolidated revenue: ₹406.92 crore, up 8.2% year-over-year
• EBITDA: ₹36.64 crore, a 148% increase year-over-year
• EBITDA margin: 9%, up from 3.93% in the previous year
• Consolidated net profit: ₹16.71 crore

H1 Performance

• Consolidated revenue: ₹795.17 crore, up 8% year-over-year
• Consolidated net profit: ₹23.95 crore

Operational Performance

• Q2 export sales: ₹64 crore, down 17% year-on-year
• H1 export sales: ₹127 crore

Strategic Developments

• Board approved disposal of 25% shareholding in AGL Proteins Private Limited
  • Reduces AGL's stake from 51% to 26%
  • Converts AGL Proteins from a subsidiary to an associate company
  • Shares to be acquired by existing shareholder Mr. Prince Patel (non-promoter group)
• Approved increased capital contribution in Harmony Surfaces Thailand Limited
  • Wholly owned subsidiary incorporated in June 2024
  • Aims to support business operations and international expansion
• Launched Enhanced Strategic Integration Programme (ESIP)
  • Long-term vision of achieving ₹6,000 crore in total revenue
• Appointed Bollywood actor Ranbir Kapoor for "Premium ka Pappa" campaign

Management Commentary

Kamlesh Patel, Chairman and Managing Director of Asian Granito India Limited, 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
• 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 has authorized key managerial personnel for determining materiality and making stock exchange disclosures. Asian Granito operates in tiles, marble, quartz, and bathware segments.

Investors should note that the implementation of some projects, including the setting up of a display center in Ahmedabad, has faced delays due to various factors.

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.