Asian Granito India returns to profit in FY25, consolidated revenue rises to Rs 1,559cr

How Did Asian Granito Reverse Its Fortunes in FY25?

Asian Granito India Limited (NSE: ASIANTILES), one of the top names in India’s luxury surfaces and ceramic tile manufacturing segment, has reported a noteworthy turnaround in FY25, swinging back to profitability after a challenging FY24. The company posted a consolidated net profit of ₹20.24 crore in FY25, in stark contrast to a net loss of ₹20.15 crore in the previous fiscal. Revenues rose marginally by 1.8% year-on-year to ₹1,558.52 crore, driven by a recovery in domestic operations and solid export momentum.

EBITDA also saw substantial improvement, climbing 48.5% to ₹75.72 crore. The EBITDA margin expanded to 4.90% from 3.60% in FY24. The company’s quarterly performance underscored a sharper recovery: in Q4 FY25 alone, net sales rose 11.3% year-over-year to ₹471.62 crore, while the net profit surged to ₹16.36 crore from a Q4 FY24 loss of ₹5.54 crore.

This recovery comes at a time when India’s ceramic tile industry is navigating global headwinds, including subdued European demand and rising input costs. Yet, companies like Asian Granito have adapted by optimizing their production efficiency, scaling exports, and deepening their domestic retail footprint.

Why Did Asian Granito Stock See Volatility in 2025?

Asian Granito’s stock closed at ₹53.01 on May 29, 2025, reflecting a dip of 0.53% for the day. The share has traded within a volatile range over the past year, hitting a 52-week high of ₹98.20 in August 2024 and a low of ₹39.15 in April 2025. Despite the Q4 recovery, investor sentiment remains cautious. The stock’s high trailing P/E, previously noted to be above 50, continues to pose valuation challenges, particularly in a market environment where midcaps and smallcaps are under pressure.

Volume analysis indicates a total traded volume of 8.55 lakh shares with 48.10% being deliverable—suggesting a fair share of trades are positioned for the long term. Institutional sentiment appears neutral-to-cautious, with increased promoter stake signaling internal confidence, even as mutual funds and FIIs await greater clarity on restructuring benefits.

What’s Behind the EBITDA and Profitability Surge?

Asian Granito’s EBITDA climbed to ₹75.72 crore in FY25, with margin expansion of 124 basis points year-over-year. This was largely attributed to operating leverage and better absorption of fixed costs due to scale benefits in exports. Export revenues contributed ₹291 crore in FY25, up 19% from ₹246 crore in FY24. This now represents roughly 19% of the company’s total consolidated turnover.

Standalone performance, while more mixed, also reflected operational discipline. Standalone EBITDA rose marginally to ₹29.94 crore from ₹29.61 crore in FY24, and net profit for the full year stood at ₹27.14 crore. Although topline declined by 2% on a standalone basis, Q4 FY25 showed strong profit recovery, driven by cost efficiency and product mix improvements.

This uptick in margins aligns with broader industry shifts, where Indian ceramic manufacturers are prioritizing premium products and value-added offerings amid commoditized price pressures.

What Structural Changes Did AGL Undertake in FY25?

A key highlight of FY25 was Asian Granito’s restructuring efforts through its Composite Scheme of Arrangement. The scheme—comprising a strategic demerger, slump sale, and merger with group entities such as Affil Vitrified, Ivanta Ceramics, Crystal Ceramic Industries, Amazoone Ceramics, and others—received requisite shareholder and creditor approvals and is now pending NCLT Ahmedabad‘s final order.

These changes are expected to streamline operations, unlock synergies, and reduce redundancies. Management has communicated that this will help propel Asian Granito’s next growth cycle, as part of its “Enhanced Strategic Integration Programme (ESIP),” targeting total revenue of ₹6,000 crore within the next 4–6 years.

Additionally, the company completed the conversion of outstanding warrants into equity shares in Q3 FY25. This raised ₹28.18 crore and increased promoter stake from 29.02% in September 2024 to 33.52% in March 2025. This capital restructuring not only improved the company’s equity base but was also interpreted by investors as a sign of strong internal confidence in the company’s long-term trajectory.

How Is the Global Expansion Strategy Playing Out?

To fortify its presence in key international markets, Asian Granito established two new subsidiaries in Q4 FY25: AGL Surfaces Trading L.L.C in Dubai and PT AGL Surfaces Indonesia. These entities aim to cater to the Middle East and Southeast Asian markets by offering a broad range of tiles, marble, natural stones, and other construction materials. Dubai and Indonesia serve as strategic export hubs given their infrastructure boom and rising demand for premium surface solutions.

The Middle East expansion complements India’s government-backed support for exports under Production Linked Incentives (PLI) and export credit schemes, indirectly benefiting ceramic exporters like Asian Granito.

How Is the Brand Revamp Fueling Retail Momentum?

In an aggressive move to reposition itself as a premium lifestyle brand, Asian Granito launched two high-visibility campaigns. Bollywood actor Ranbir Kapoor was brought in as the brand ambassador for its “Premium ka Pappa” campaign, aimed at elevating its flagship product positioning. Actress Vaani Kapoor joined the Bonzer7 line under the “Kya Baat Hain” theme to attract younger, urban buyers.

The company’s omnichannel push now includes over 277 exclusive franchisee showrooms, 13 company-owned display centers, and more than 18,000 dealer/distributor touchpoints across India. With exports to 100+ countries and a production capacity of 54.5 million square meters per annum, AGL is now India’s fourth-largest listed tile maker by scale.

This alignment of branding, product innovation, and distribution underscores the company’s readiness for premiumization and cross-border expansion, two vital pillars in today’s ceramics industry.

What’s Next for Asian Granito?

With profitability restored and exports firing, Asian Granito enters FY26 with a moderately optimistic outlook. The company has guided for aggressive growth driven by ESIP execution, post-restructuring consolidation, and overseas market penetration.

However, investors are keeping a close eye on several factors: successful NCLT scheme implementation, margin stability, export sustainability amid global demand swings, and domestic housing market dynamics. Rising fuel costs and input price volatility remain key risks.

Market analysts expect consolidation in India’s ceramic sector over the next few years. Asian Granito, with its established manufacturing base, brand recall, and increased promoter skin in the game, is well-positioned to ride this wave—provided execution keeps pace with ambition.