Carysil Q1 FY27 growth supported by exports, domestic demand and capacity expansion

Investment View and Key Takeaways

In its August 12, 2026 result update, ICICI Direct Research retained its BUY recommendation on Carysil Limited and maintained a target price of Rs 1,410, compared with the CMP of Rs 1,195. The target is based on 27 times FY28E EPS.

The broker describes Carysil as a global kitchen-solutions player focused on premium quartz and stainless-steel sinks, faucets and built-in appliances. The company has subsidiaries in the UK, Germany and the UAE, with operations spanning more than 58 countries.

ICICI Direct's positive view is supported by domestic expansion, record export order bookings, capacity additions and the potential for operating leverage.

Q1 FY27 Financial Performance

Carysil reported consolidated revenue of Rs 262.1 crore in Q1 FY27, up 15.5 per cent year on year. The headline summary reported EBITDA of Rs 56 crore, an EBITDA margin of 21.2 per cent and PAT of Rs 32.1 crore, with PAT increasing 39.9 per cent year on year. The detailed quarterly exhibit reported EBITDA of Rs 53.4 crore, up 21.8 per cent year on year, at a 20.4 per cent margin, and PAT of Rs 31.4 crore, up 37.7 per cent year on year.

Domestic revenue increased 39.8 per cent year on year to Rs 56 crore, raising India's share of consolidated sales to 33 per cent from 28 per cent in Q1 FY26. Management attributed domestic growth to 25 per cent volume growth and a 12 per cent improvement in price realisation.

Product and Market Performance

Quartz sinks, which represented 51 per cent of consolidated product revenue, grew 18.7 per cent year on year to Rs 134 crore. Volumes increased 6.3 per cent to 201,500 units, while capacity utilisation reached 80 per cent. Demand was supported by OEM partners including IKEA, GROHE and Karran USA.

Stainless-steel sink revenue grew 44.1 per cent year on year to Rs 32 crore. Volumes rose 16.3 per cent to 49,400 units and utilisation reached 94 per cent. Carysil commissioned an additional 70,000 units per annum of steel-sink capacity during the quarter, taking installed capacity to 250,000 units per annum.

Kitchen appliances revenue declined 7.9 per cent year on year to Rs 31 crore, while faucets grew 12.3 per cent, which the broker suggests may reflect product mix. Built-in appliances saw strong GCC demand, where built-in products constitute 80 per cent of segment sales. The initial domestic launch of built-in refrigerators sold out.

International revenue increased 10.6 per cent year on year to Rs 111 crore. However, container shortages and shipping delays delayed dispatches by one to two weeks.

Capacity Expansion and Distribution Plans

Management maintained its FY27 revenue-growth guidance of about 15 per cent and its medium-term revenue CAGR target of 15–20 per cent, with an additional Rs 1,000 crore revenue milestone as an objective. EBITDA-margin guidance remains at 18–20 per cent, with Q1 FY27 execution at the upper end of this range.

Carysil plans FY27 capex of Rs 80–90 crore, including Rs 40–50 crore for manufacturing expansion. The planned additions are targeted for completion by March 2027:

• Additional capacity of 250,000 quartz sinks, taking total capacity to 1.25 million units per annum.
• Additional capacity of 150,000 steel sinks.
• Doubling of faucet capacity to 100,000 units per annum.
• Doubling of built-in-appliance capacity to 100,000 units per annum.

The company also plans to add 30–50 galleries, alongside experience centres and surface-brand stores.

Broker Estimates and Valuation

ICICI Direct estimates revenue to grow at a 16.3 per cent CAGR over FY26–FY28E. It forecasts EBITDA margins of 20.0 per cent in FY27E and 20.3 per cent in FY28E.

The revised target price of Rs 1,410 is based on 27 times FY28E EPS.

Key Risks

• Volatility in crude-derived raw-material prices, particularly MMA.
• Delays in completing the planned capacity-expansion programme.