1. At a Glance – Blink and You’ll Miss the Profits
Pacific Industries Ltd is a ₹104 Cr market cap company trading at around ₹151, down ~39% over the last one year — which tells you the market has not been impressed, amused, or even mildly entertained.
This is a company sitting on a book value of ₹643 per share, yet the stock trades at just 0.24x P/B. Sounds like a bargain? Wait till you see the returns.
- TTM Sales: ₹176 Cr
- TTM PAT: ₹3.94 Cr
- ROE: 1.71%
- ROCE: 3.07%
- Debt: ₹52.8 Cr
- OPM: ~5.7%
- Export exposure: ~75% (historically)
Latest quarter numbers?
Sales collapsed -57.8% QoQ, profits dropped -72%, and the stock said, “Main bhi girunga.”
So yes, the valuation looks cheap — but the business quality looks even cheaper. Curious why? Let’s dig.
2. Introduction – The Stone That Refused to Shine
Pacific Industries has been around since 1989, which means it has survived liberalisation, multiple commodity cycles, China dumping, quartz booms, granite busts, and probably a few auditor migraines.
The company operates in granite slabs, tiles, and engineered quartz, exporting to 40+ countries. On paper, this sounds global and fancy. In reality, it’s a low-margin, capital-heavy, working-capital-hungry business where one bad export cycle can wreck your P&L.
And FY25–FY26 clearly show that reality.
Despite decent infrastructure, quarries, and even a US subsidiary, Pacific Industries has struggled to convert scale into returns. Profits exist, yes — but returns are anaemic.
This is not a “growth story”.
This is a “can they stop bleeding slowly?” story.
3. Business Model – WTF Do They Even Do?
Think of Pacific Industries as a stone supermarket
with three aisles:
- Granite (North & South Indian)
Used in flooring, countertops, and construction — highly commoditised. - Quartz / Engineered Stone (Taanj Quartz)
This is the aspirational bit. Automated Breton-inspired lines, jumbo slabs, export-focused. - Trading & Miscellaneous (including iron ore)
Yes, iron ore. Because why not?
The company is a 100% export-oriented unit for quarry operations, with manufacturing in Udaipur, and quarries in Rajasthan for quartz, feldspar, and Blue Dunes granite.
Quartz is supposed to be the saviour — higher value, better margins — but execution and pricing pressure have kept margins stubbornly low.
Explain this business to a lazy investor?
👉 “We cut rocks, polish them, ship them overseas, pray forex behaves, and hope builders don’t slow down.”
4. Financials Overview – Numbers That Need Therapy
Quarterly Performance Table (Q3 FY26 – Dec 2025)
(All figures in ₹ Crores)
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 26.69 | 63.22 | 39.59 | -57.8% | -32.6% |
| EBITDA | 1.39 | 3.39 | 1.80 | -59.0% | -22.8% |
| PAT | 0.37 | 1.32 | 0.33 | -72.0% | +12.1% |
| EPS (₹) | 0.54 | 1.92 | 0.48 | -71.9% | +12.5% |
Yes, sales halved YoY.
Yes, margins shrank.
Yes, PAT survived — barely.
Annualised EPS (Q3 rule):
Average of Q1, Q2, Q3 EPS × 4
= Avg(1.35, 0.48, 0.54) × 4
