EXXARO - Exxaro Tiles
📢 Recent Corporate Announcements
Exxaro Tiles has been notified by Sabarmati Gas Limited (SGL) regarding gas supply restrictions at its Talod manufacturing units due to force majeure linked to Middle East conflicts. The company faces limitations on Daily Contracted Quantity (DCQ) and Non-MGO gas usage, which may partially impact production activities. Management is actively implementing alternate fuel options to mitigate the disruption and maintain operational continuity. Currently, the company maintains that there is no material impact on overall business operations as inventory levels are sufficient for regular dispatches.
- Sabarmati Gas Limited (SGL) declared force majeure affecting gas supply to Talod units.
- Restrictions impact Daily Contracted Quantity (DCQ) and usage of Non-MGO gas until further notice.
- Company is evaluating and implementing alternate fuel options to ensure production continuity.
- Management states current inventory levels are adequate to sustain normal dispatch schedules.
- No material impact on overall business operations is anticipated based on current assessments.
Exxaro Tiles Limited has announced a credit rating upgrade from Infomerics Valuation and Rating Limited for bank facilities totaling Rs. 113.97 crore. The long-term rating for fund-based facilities of Rs. 97.49 crore has been upgraded to IVR BBB-/Stable from the previous CRISIL BB+/Stable. Short-term non-fund-based facilities of Rs. 16.48 crore were also upgraded to IVR A3 from CRISIL A4+. This transition to an investment-grade rating suggests improved financial stability and potential for lower borrowing costs.
- Total bank facilities worth Rs. 113.97 crore have been re-rated by Infomerics.
- Long-term fund-based facilities of Rs. 97.49 crore upgraded to IVR BBB-/Stable from CRISIL BB+/Stable.
- Short-term non-fund-based facilities of Rs. 16.48 crore upgraded to IVR A3 from CRISIL A4+.
- The upgrade marks a shift from sub-investment grade to investment grade for the company's debt.
Exxaro Tiles reported a consolidated revenue of ₹70.11 crore for Q3 FY26, marking an 11.7% decline compared to ₹79.44 crore in the same quarter last year. Net profit for the quarter fell sharply by 51.3% YoY to ₹59.05 lakhs, down from ₹1.21 crore. While the quarterly performance was weak, the nine-month period shows a turnaround with a net profit of ₹2.52 crore compared to a loss of ₹3.32 crore in the previous year's corresponding period. Sequential performance was also under pressure as net profit halved from ₹1.22 crore in Q2 FY26.
- Consolidated Revenue from Operations decreased 11.7% YoY to ₹7,010.93 lakhs.
- Net Profit for Q3 FY26 stood at ₹59.05 lakhs, a 51.3% drop from ₹121.31 lakhs in Q3 FY25.
- Power and Fuel expenses remained high at ₹24.45 crore, accounting for nearly 35% of total revenue.
- Nine-month consolidated PAT turned positive at ₹251.86 lakhs vs a loss of ₹332.02 lakhs in 9M FY25.
- Basic EPS for the quarter declined to ₹0.01 from ₹0.03 in the year-ago period.
Exxaro Tiles Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the period ending December 31, 2025. The company's Registrar and Share Transfer Agent, Bigshare Services Private Limited, confirmed that no requests for dematerialization or rematerialization were received during this quarter. Significantly, the filing notes that 100% of the company's shares are already held in dematerialized form. This is a standard procedural disclosure required by Indian market regulators to ensure shareholding integrity.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- 100% of the company's equity shares are currently held in demat form.
- Zero requests for dematerialization or rematerialization were received during the quarter.
- Confirmation provided by Registrar and Share Transfer Agent, Bigshare Services Private Limited.
Exxaro Tiles is installing a 3.8 MW DC solar power project in Gujarat for captive consumption at its Padra plant. The project, situated on land leased for nearly 26 years, aims to meet the plant's annual requirement of 11 million units. By transitioning to solar, the company expects to reduce energy costs by 30%, translating to roughly ₹3.50 crore in annual savings. This initiative significantly lowers the current electricity expenditure which averages ₹9 per unit.
- Installation of a 3.8 MW DC solar power project with auto-tracker technology for high yield.
- Expected annual savings of approximately ₹3.50 crore in electricity costs.
- Estimated 30% reduction in energy costs for the Padra manufacturing plant.
- Land leased for 25 years and 11 months to support long-term operational stability.
- Padra plant's annual energy requirement is ~11 million units at a current cost of ₹9 per unit.
Exxaro Tiles Limited has announced the closure of its trading window for all designated persons starting January 1, 2026. This is a mandatory regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations for the upcoming financial results. The closure pertains to the unaudited financial results for the quarter and nine months ending December 31, 2025. The trading window will reopen 48 hours after the results are officially declared to the exchanges.
- Trading window closure effective from January 1, 2026.
- Closure is for the purpose of considering Q3 and nine-month financial results ending December 31, 2025.
- Window to reopen 48 hours after the public announcement of the financial results.
- Board meeting date for result approval to be announced in due course.
Exxaro Tiles Limited has announced the successful passing of four key resolutions via a Postal Ballot process concluded on December 24, 2025. Shareholders overwhelmingly approved the re-appointment of Mr. Mukeshkumar Babubhai Patel as Chairman and Managing Director, along with two Whole Time Directors. Additionally, the appointment of Mr. Miten Majmundar as an Independent Director was confirmed. All resolutions received over 99.99% of the votes in favour, indicating strong shareholder confidence in the current leadership.
- Re-appointment of Mukeshkumar Babubhai Patel as CMD approved with 99.9913% votes in favour.
- Re-appointment of Kirankumar Bhikhalal Patel and Dineshkumar Ramanlal Patel as Whole Time Directors received 99.9905% approval.
- Appointment of Miten Majmundar as an Independent Director secured 99.9919% of the total votes cast.
- A total of 17,22,91,772 valid votes were cast for the primary resolution regarding the CMD's re-appointment.
- The company maintained a shareholder base of 58,684 as of the record date on November 21, 2025.
Exxaro Tiles Limited has successfully passed four special resolutions via postal ballot, ensuring leadership continuity. Shareholders overwhelmingly approved the re-appointment of Mr. Mukeshkumar Babubhai Patel as Chairman and Managing Director with 99.99% of the votes in favor. Additionally, two Whole Time Directors were re-appointed, and Mr. Miten Majmundar was appointed as an Independent Director. The high approval ratings across all resolutions indicate strong investor confidence in the current management team.
- Re-appointment of Mr. Mukeshkumar Babubhai Patel as CMD approved with 99.9913% votes in favor.
- Re-appointment of Mr. Kirankumar Bhikhalal Patel and Mr. Dineshkumar Ramanlal Patel as Whole Time Directors passed with 99.9905% support.
- Appointment of Mr. Miten Majmundar as an Independent Director confirmed with 99.9919% majority.
- A total of 17,22,91,772 valid votes were cast for the primary resolution regarding the CMD's re-appointment.
- The voting process was conducted via electronic means from November 25 to December 24, 2025.
Financial Performance
Revenue Growth by Segment
Revenue from operations grew 0.84% YoY to INR 304.21 Cr in FY25 from INR 301.68 Cr in FY24. However, H1 FY25 revenue of INR 130 Cr represents a 17% decline compared to INR 156.66 Cr in H1 FY24. Own manufacturing contributed 88.1% (INR 138.11 Cr) of H1 FY24 revenue, while outsourced products contributed 7.6% (INR 11.92 Cr).
Geographic Revenue Split
The company serves both domestic and foreign markets. Domestic sales are recognized upon dispatch, while exports are recognized based on bills of lading. Export capabilities are being expanded to improve revenue, though specific regional percentage splits are not disclosed.
Profitability Margins
Operating margins have seen a significant decline from 20.25% in FY21 to 8.8% in FY24, and further dropped to 4.53% in H1 FY25. The company recorded a net loss of INR 12.17 Lakhs in FY25 compared to a PAT of INR 224.63 Lakhs in FY24.
EBITDA Margin
EBITDA margin stood at 9.7% (INR 15.58 Cr) in H1 FY24, a slight decline from 9.9% (INR 13.62 Cr) in H1 FY23. Operating margins reached a low of 0.25% in Q1 FY25 due to plant closure and intense competition.
Capital Expenditure
Major CAPEX was incurred for the Big Slab line at the Talod Unit in FY24 to focus on premium large-format tiles. Total fixed assets and capital work-in-progress are not explicitly totaled in INR Cr but are linked to the company's premiumization strategy.
Credit Rating & Borrowing
Ratings were downgraded to 'Crisil BB+/Stable/Crisil A4+' in August 2025 from 'CRISIL BBB-/Negative/CRISIL A3' in December 2024. Total bank loan facilities rated are INR 122 Cr. Interest costs increased due to RBI repo rate hikes.
Operational Drivers
Raw Materials
Natural gas, clay, and minerals represent the primary raw materials, with gas prices being a critical and volatile cost driver for vitrified tile production.
Capacity Expansion
Current focus is on the operational use of the newly commissioned Big Slab line at the Talod Unit; specific MTPA capacity figures are not disclosed.
Raw Material Costs
Cost of materials consumed was INR 97.63 Cr in FY25, representing 32.1% of total revenue from operations.
Manufacturing Efficiency
Operating efficiency was hampered by a 3-4 week plant closure for upgradation in FY24/Q1FY25, contributing to a negative PAT of INR 4.27 Cr in Q1 FY25.
Logistics & Distribution
Sales and distribution promotional expenses increased in H1 FY24 to support the brand, impacting short-term profitability.
Strategic Growth
Growth Strategy
Growth is targeted through the expansion of premium product revenue (Big Slabs), increasing export capabilities to global markets, and optimizing the product mix to improve realizations per unit.
Products & Services
Vitrified tiles and large-sized ceramic slabs (Big Slabs).
Brand Portfolio
Exxaro.
New Products/Services
The Big Slab line products are expected to be the primary driver for premium segment revenue growth and improved margins.
Market Expansion
Expansion into export markets is a key strategic focus for FY25 and beyond to leverage manufacturing facilities set for export production.
External Factors
Industry Trends
The ceramic tile industry is shifting toward large-format slabs and premiumization, though it currently faces intense competition and high fuel costs.
Competitive Landscape
Intense competition from both organized and unorganized players in the vitrified tiles market is pressuring realizations and margins.
Competitive Moat
Moderate moat derived from the established 'Exxaro' brand and a strong distribution network of 800+ dealers and 2000+ touchpoints.
Macro Economic Sensitivity
Highly sensitive to the real estate sector and GDP growth; subdued demand in real estate led to a 17% revenue decline in H1 FY25.
Consumer Behavior
Increasing consumer preference for large-sized tiles and premium finishes is driving the company's shift toward Big Slabs.
Geopolitical Risks
Susceptibility to global trade conditions and shipping costs as the company expands its export-related production.
Regulatory & Governance
Industry Regulations
Operations are subject to manufacturing standards and pollution norms for the ceramic industry, though specific compliance costs are not disclosed.
Taxation Policy Impact
Effective tax rate was impacted by a prior period tax adjustment of INR 1.35 Cr in FY25; MAT credit of INR 0.22 Cr was availed.
Legal Contingencies
Prior period tax expense of INR 1.35 Cr recorded in FY25; no other major pending litigation values were disclosed.
Risk Analysis
Key Uncertainties
Volatility in gas prices and the ability to generate sufficient cash accruals to serve yearly debt obligations of INR 7.5 Cr are key uncertainties.
Geographic Concentration Risk
Strong domestic presence with 2000+ touchpoints; currently diversifying through export expansion.
Third Party Dependencies
Outsourced manufacturing accounted for INR 11.92 Cr (7.6%) of H1 FY24 revenue.
Technology Obsolescence Risk
Investment in the Big Slab line at the Talod Unit is a direct response to the risk of technology obsolescence in standard tile formats.
Credit & Counterparty Risk
Bank limit utilization remained high at over 90% through October 2024, indicating tight liquidity and constrained financial flexibility.