Carysil Limited , a leading manufacturer of quartz and stainless steel sinks, has reported robust financial results for the second quarter of fiscal year 2026, demonstrating resilience in the face of US tariff challenges.

Financial Highlights

The company achieved consolidated revenue of INR 244.00 crores in Q2 FY26, marking a 17.9% year-on-year growth. EBITDA rose by 33.5% to INR 49.50 crores, while Profit After Tax (PAT) surged by 61.9% to INR 27.20 crores. These results were achieved despite facing a 50% tariff on exports to the United States.

Operational Performance

Carysil's quartz sink division continued to be a strong growth engine for the company. In Q2 FY26, quartz sink volumes reached 197,000 units, up from 159,000 units in Q2 FY25. The company's capacity utilization for quartz sinks trended towards 88% in Q2 FY26, indicating improved throughput and operating leverage.

The stainless steel sink division also showed growth, with volumes increasing from 40,300 units in Q2 FY25 to 43,400 units in Q2 FY26, representing a 7.6% year-on-year growth.

Strategic Developments

Carysil secured approximately 70% of IKEA's global non-US quartz sink business, marking a significant achievement for the company. To meet the growing demand, Carysil is expanding its quartz sink capacity by 100,000 units within its current facility, with a capex of INR 5.00 crores. This expansion is expected to be operational by the end of December 2025.

The company maintains strong partnerships with major retailers like Lowes, which has shown unexpected growth in business. Carysil received a joint Supplier of the Year award from Lowes in its first year of partnership, a rare achievement for any supplier.

Expansion Plans

Carysil plans capacity expansions across all product segments:

1. Quartz Sinks: Adding 100,000 units immediately, with potential for another 150,000 units in the near future.
2. Stainless Steel Sinks: Expanding capacity by 70,000 units to reach 250,000 units by the end of Q4 FY26, with plans for further expansion to 400,000 units.
3. Faucets: Currently at 75% capacity utilization of 50,000 units, with a focus on stainless steel faucets to meet changing global norms.
4. Appliances: Investing INR 25.00 crores to set up a modern manufacturing and assembly facility, including an in-house glass processing plant.

Market Outlook

Despite facing challenges from US tariffs, Carysil remains optimistic about its future growth. The company sees potential for expansion in both domestic and international markets, particularly in Europe where competitors are struggling due to inflation and tariffs.

Chirag Parekh, Chairman and Managing Director, stated, "We are very pleased with our performance, especially in this time where our major export market, the U.S., has been impacted by a 50% tariff. We have taken steps to meet this challenge and support our customers in this difficult time."

The company maintains its growth guidance of 15% annually for the next 3 to 4 years and expects to sustain EBITDA margins between 18% to 20%, even with the current tariff situation.

As Carysil continues to navigate global market challenges and capitalize on emerging opportunities, it remains focused on innovation, quality, and strategic expansion to drive long-term growth.

Carysil Limited , a prominent player in the kitchen and bath solutions industry, has released its monitoring agency report for the second quarter of fiscal year 2026, detailing the utilization of funds raised through its Qualified Institutions Placement (QIP). The report, prepared by ICRA Limited, the appointed monitoring agency, indicates that the company has been efficiently deploying the raised capital in line with its stated objectives.

QIP Fund Details and Utilization

The QIP, which raised a total of Rs. 125.00 crore, resulted in net proceeds of Rs. 121.65 crore after accounting for issue-related expenses. As of September 30, 2025, Carysil Limited has utilized Rs. 76.94 crore of the raised funds, leaving Rs. 44.71 crore unutilized. The company has allocated the funds across three main objectives:

1. Capital Expenditure: Rs. 62.50 crore
2. Working Capital Requirements: Rs. 31.25 crore
3. General Corporate Purposes: Rs. 27.90 crore

Breakdown of Fund Utilization

Efficient Deployment of Funds

The monitoring agency report highlights that Carysil Limited has fully utilized the allocated funds for working capital requirements and general corporate purposes. The company has made significant progress in its capital expenditure plans, having utilized Rs. 17.79 crore for the procurement and installation of machines, equipment, and moulds for new manufacturing facilities.

Management of Unutilized Funds

The remaining Rs. 44.71 crore, earmarked for further capital expenditure, has been temporarily deployed in fixed deposits with HDFC Bank. These deposits are earning interest rates ranging from 6.25% to 6.60%, demonstrating the company's prudent financial management while awaiting full deployment of funds.

General Corporate Purposes Breakdown

The funds allocated for general corporate purposes have been utilized across various areas:

1. Advertising & Publicity Expenses: Rs. 2.22 crore
2. Acrysil USA Loan Payment: Rs. 2.81 crore
3. Raising Funds-Right Issue CSL: Rs. 4.25 crore
4. Supplier's Payment: Rs. 18.20 crore
5. Sales Promotion Expenses: Rs. 0.42 crore

Conclusion

ICRA Limited's report confirms that there has been no material deviation from the stated objectives of the QIP issue. Carysil Limited's strategic allocation and utilization of funds demonstrate its commitment to expanding its manufacturing capabilities, strengthening its working capital position, and supporting overall business growth.

The efficient use of QIP funds, coupled with the company's prudent management of unutilized amounts, positions Carysil Limited well for its planned expansion and operational enhancements in the coming quarters.