1.At a Glance
Welcome to the world ofExxaro Tiles Ltd, where glossy floors meet slippery profits. With amarket cap of ₹360 crore, this ceramic crusader is currently trading around ₹8.05 — cheaper than a Vadodara cutting chai (but with a lot more heat). The company flaunts aP/E of 53.3, which basically means you’re paying Ferrari prices for a Maruti performance.
Quarterly sales stood at₹68.96 crore, marginally down1.34% QoQ, while profit after tax danced up220%, reaching a modest₹1.2 crore. Clearly, the company’s profits behave like Bollywood sequels — unexpected, sometimes unnecessary, but occasionally entertaining.
The stock has slid-21% over the last year, while return on equity stands at a fragile0.09%— thinner than their 9mm tiles. CRISIL’s recent downgrade toBB+/A4+cited “stretched liquidity” and “GCAs of 359 days,” proving that even credit agencies get poetic when numbers start crying.
Still, Exxaro continues to polish its image — literally — withAjay Devgnas its brand ambassador and a shiny new showroom inGhana, West Africa. Because when Indian bathrooms are done, Africa is the next frontier.
2.Introduction – The Vitrified Comedy Show
Incorporated in 2008,Exxaro Tiles Ltdentered the ceramics market with dreams of becoming the Kajaria of Gujarat. Fast forward to FY26, and the company is still finding its feet, occasionally slipping on its own glossy tiles.
It manufacturesvitrified tiles, wall tiles, parking tiles, and full-body tiles— basically, everything you’ve seen in every real estate sample flat that never got completed. With a product portfolio of over1,000 designs, Exxaro caters to homes, malls, offices, and even airports — because every passenger lounge needs a surface to cry on when flights get delayed.
The company has astrong domestic presence(99% of revenues) and a sprinkle of exports (1%), proving that even globalization starts small — like one tile at a time.
Over the past few years, Exxaro has invested in high-tech Italian machinery like theSACMI CONTINUA line, because nothing says “premium” like importing machines from Italy and paying EMIs from Gujarat.
But let’s be honest — this is not your typical success story. This is a story of a company trying to stay relevant in a market ruled byKajaria, Somany, and Asian Granito, while also battling high inventory, long debtor days, and CRISIL’s downgrades. Think of it as the underdog script Bollywood forgot to pick up.
3.Business Model – WTF Do They Even Do?
Exxaro Tiles is basically in the business of making shiny, durable, and Instagram-worthy ceramic tiles. Fromdouble charge vitrified tiles(for your boring offices) toglazed vitrified tiles(for your show-off relatives), andfull-body vitrified tiles(for people who think flooring is personality), they cover all categories.
They operate through two plants — one atPadraand another atTalodin Gujarat — both ISO certified and buzzing with imported tech. Their totalcapacity is 14.6 million sq. meters, with utilization around68%, which is respectable unless you’re a CA checking return ratios.
Revenue streams come from two main segments:
- Manufacturing and Sales of Tiles– through dealers and distributors.
- Trading of Tiles– for designs they don’t make but want to profit from anyway.
The company claims anetwork of 800 dealers and 2000+ touchpoints, because tiles apparently need influencers too.
Clients includeLodha, Amul, SBI, Samsung, and evenShapoorji Pallonji— the kind of names you’d drop in a family wedding when someone asks, “Beta, what does your company do?”
So, what’s the business model in short? Simple: manufacture tiles, polish them, market them like jewelry, and pray people don’t ask why profits
are smaller than the grout line between them.
4.Financials Overview
Quarterly Results Lock: Q2 FY26 (Sep 2025)Let’s see how the financials have aged this quarter — like a tile that’s seen too many renovation projects.
| Metric | Latest Qtr (Sep 2025) | YoY Qtr (Sep 2024) | Prev Qtr (Jun 2025) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹68.96 Cr | ₹69.90 Cr | ₹64.93 Cr | -1.3% | +6.2% |
| EBITDA | ₹6.36 Cr | ₹5.92 Cr | ₹6.11 Cr | +7.4% | +4.1% |
| PAT | ₹1.20 Cr | -₹0.63 Cr | ₹0.81 Cr | +290% | +48% |
| EPS (₹) | 0.03 | -0.01 | 0.02 | NA | +50% |
Commentary:If you think tiles are supposed to be hard, Exxaro’s profit recovery is harder. After a loss last year, it’s back in the green — barely. TheEBITDA margin at 9.22%shows the company’s operational efficiency is steady, even if it’s not flooring investors yet.
5.Valuation Discussion – Fair Value Range (Educational Purpose Only)
Let’s try to find out whether ₹8 is cheap or just inexpensive for a reason.
a) P/E Method:
- EPS (TTM): ₹0.15
- Industry P/E: 44.8
- Fair Value Range = 0.15 × (30–45) = ₹4.5 – ₹6.75
b) EV/EBITDA Method:
- EV = ₹445 Cr, EBITDA = ₹29 Cr
- EV/EBITDA = 15× (current)
- Assuming fair range 10×–12×,Fair EV = ₹290–₹350 Cr → per share range ≈ ₹6.5 – ₹7.8
c) DCF (Simplified):Assuming FCF = ₹7 Cr, growth 8%, discount 12% →Fair Value ≈ ₹7.0
📘Fair Value Range: ₹6–₹8 per share(For educational purposes only. Not investment advice.)
6.What’s Cooking – News, Triggers, Drama
Oh boy, there’s more drama here than in an Ekta Kapoor serial:
- CFO Resigned (Sep 2025):Himanshu Shah left the building, citing personal reasons (read: CRISIL ratings).
- Credit Rating Downgrades (2023–2025):CRISIL went from “BBB/Stable” to “BB+/A4+,” blaming “stretched liquidity” and “GCAs of 359 days.” Translation: customers take a year to pay, but banks want money monthly.
- Boardroom Shuffle (Nov 2025):Reappointment of MD/WTDs till 2031, because continuity builds confidence (or at least LinkedIn posts).
- New Showroom in Ghana (May 2024):Their first global showroom in West Africa.
