Asian granito India Limited has received a credit rating reaffirmation from Infomerics Valuation and Rating Limited for its bank facilities totaling Rs 155.00 crore. The rating agency communicated its decision through an updated credit rating letter received by the company on February 24, 2026.

Rating Details and Changes

Infomerics has placed both long-term and short-term facilities on rating watch with developing implications, citing the material event of NCLT approval for the composite scheme of arrangement. The rating action affects facilities across multiple banking partners including HDFC Bank, IDBI Bank, and IndusInd Bank.

Facility Breakdown

The long-term facilities of Rs 145.00 crore comprise cash credit facilities from multiple lenders and proposed additional limits. HDFC Bank provides Rs 40.00 crore in cash credit, while IDBI Bank offers Rs 40.50 crore in cash credit and Rs 4.50 crore in working capital demand credit. IndusInd Bank contributes Rs 50.00 crore with various sublimits including foreign letter of credit, working capital demand credit, bank guarantee, and standby letter of credit facilities.

Regulatory Compliance

The rating reaffirmation follows the Hon'ble NCLT's approval of the composite scheme of arrangement among Asian Granito India Limited, Adicon Ceramica Tiles Private Limited, Adicon Ceramics Limited, and their respective shareholders and creditors. This approval was communicated to stock exchanges under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Rating Validity and Monitoring

The reaffirmed ratings remain valid until May 29, 2026, representing a one-year period from the surveillance rating committee date. Infomerics has established ongoing monitoring requirements including monthly no default statements and quarterly performance data submissions. The rating agency reserves the right to conduct surveillance reviews based on circumstances warranting such assessment, with at least one annual review mandatory.

Corporate Structure

Asian Granito India Limited operates from its registered and corporate office at Dev Arc, opposite Iskcon Temple, S.G. Highway, Ahmedabad, Gujarat. The company, incorporated in 1995, operates under CIN L17110GJ1995PLC027025 and maintains its commitment to adding beauty to life through its ceramic tiles and related products business.

Asian granito India Limited showcased robust financial performance in Q3FY26, demonstrating strong operational improvements and strategic positioning in the ceramics and tiles industry. The company, which completed 25 years of operations, reported significant growth across key financial metrics during its earnings conference call held on February 12, 2026.

Financial Performance Highlights

The company delivered impressive consolidated results for Q3FY26, marking substantial improvements across revenue and profitability metrics.

For the nine-month period, Asian Granito achieved a remarkable turnaround with PAT of Rs 43.83 crores compared to a revenue loss of Rs 4.97 crores in the corresponding period last year. The nine-month EBITDA improved significantly to Rs 102 crores from Rs 45 crores in the previous year.

Product Mix and Operational Improvements

The company's strong performance was driven by strategic improvements in product mix and operational efficiency. Asian Granito has invested in advanced technology including SACMI Continua machines and double digital printing facilities, enabling production of premium large-format tiles ranging from small sizes to 6 feet by 12 feet dimensions.

The company's average selling price (ASP) improved substantially, with overall realization increasing to Rs 360 per square meter compared to Rs 399 per square meter in the previous year. For large-format export products, the company achieved realization of Rs 408 per square meter compared to Rs 265 per square meter for similar domestic products.

Manufacturing and Distribution Network

Asian Granito operates an extensive manufacturing and distribution infrastructure with significant market presence:

The company maintains international presence in Africa's Senegal, London, Dubai, Sharjah, Vietnam, and Indonesia, with dedicated warehouses and product display facilities.

Export Recovery and Market Expansion

Export performance showed significant improvement following the reduction in US trade duties from 50% to 18%. Currently, exports contribute 15% of total revenue, with the company targeting an increase to 18-20% in the coming period. The company expects strong export growth in large-format tiles and quartz products.

Regionally, the company maintains balanced domestic presence with West contributing 35%, South 25%, North 25%, and East 15% of sales. In exports, GCC countries lead, followed by Europe and other international markets.

Utilization Levels and Future Plans

Current plant utilization rates vary across segments:

• Existing plants: 80-90%
• New plants: 70-80%
• Sanitary ware: 50%
• Quartz domestic line: 80%
• Large-format quartz: 10%

The company plans to achieve Rs 6,000 crores revenue by 2031 through product diversification, enhanced retail presence, and strategic expansion. For FY26, the company allocated Rs 25 crores for CAPEX, primarily for showroom development and international market expansion, with Rs 40 crores planned for FY27.

Asian Granito's strategic focus on retail expansion includes developing 500 exclusive showrooms and strengthening its premium dealer network through the AGL Times Premium club for dealers achieving over Rs 1 crore annual sales.

Source: Asian Granito India Limited Q3FY26 Earnings Conference Call Transcript