01 — At a Glance
The Sink Maker Who’s Finally Sitting Pretty
- 52-Week High / Low₹1,072 / ₹512
- Q3 FY26 Revenue₹223 Cr
- Q3 FY26 PAT₹21.9 Cr
- TTM EPS₹31.53
- Annualised EPS (Avg Q1-Q3 × 4)₹29.92
- Book Value / Share₹199
- Price to Book3.83x
- Debt₹235 Cr
- Debt / Equity0.42x
- Sales Growth (TTM)+12%
Flash Summary: Carysil just posted Q3 FY26 PAT of ₹21.9 crore — up 75% YoY. Revenue clocked ₹223 crore, growing 9.6% YoY. But here’s the plot twist: management disclosed in the concall that US tariffs dropped from 50% to 18%, and they’re about to roll back the 15-20% discounts they gave customers to stay competitive. Translation: The margin tailwind has begun. The stock is at ₹764, trading at 24x P/E (below company’s 5-year 19.2% ROE return). IKEA just became their global customer. Setu Capital (UK taps/faucets) acquisition approved. And they’re planning ₹100 million+ revenue next year from appliances alone. For a sink maker, this is not a slow drip anymore — it’s a full-strength flush.
02 — Introduction
The Company Your Mother Loves But Your Broker Ignored
Let’s start with the worst-kept secret in the Indian kitchen. Carysil Limited makes kitchen sinks. Composite quartz sinks. Stainless steel sinks. Bath products. Kitchen appliances. Taps. Tiles. The works.
If you’ve renovated a kitchen in the last decade — whether in Delhi, Dubai, or Detroit — there’s a good chance your sink came from a factory in Bhavnagar, Gujarat. And if you’ve visited a premium kitchen setup in Bangalore or Mumbai, you’ve definitely seen the Carysil or Sternhagen brand. The company has 4,000+ dealers in India, 90+ galleries, and a global footprint across 55+ countries.
The stock is up 110% from its March 2023 lows (₹368 to ₹764 now). The 10-year CAGR is 23%. The 5-year return is 17.9%. Yet, it barely registers on retail investor radars. Why? Because kitchen sinks are not “cool.” You don’t wake up excited to buy sinks. But your contractor sure does. And IKEA’s procurement team definitely does. And the 56-store Lowe’s network in the USA absolutely does.
This is the story of a company that went from trying to survive the US tariff shock of 2024-25 to suddenly getting a 72% tariff haircut just as we enter calendar 2026. And now they’re sitting on a stack of previously discounted customer agreements they can “renegotiate” into much fatter margins. If that’s not a business turning point, we don’t know what is.
Management Concall Highlight (Feb 2026): On US tariff reset from 50% to 18%, CFO stated: “With the reduction in tariffs… we plan to roll back these incremental discounts with immediate effect.” Rollback happening “on a pro rata basis.” The discount quantum was “between 15% to 20%” for US business. Translation: Free money walking back into the P&L.
03 — Business Model: They Make Things People Forget They Bought
Kitchen Sinks: The Unsung Hero of Every Home Reno
Carysil operates across three core segments: (1) Quartz sinks (the premium composite granite-based ones), (2) Stainless steel sinks (the workhorse), and (3) Ancillary products (appliances, tiles, countertops, taps, and bath products).
The quartz sink business is the crown jewel. Carysil is Asia’s largest composite quartz sink manufacturer — with German technology licensed from Schock & Co. since 1987. They own 150+ molds and produce 500+ SKUs. The capacity stands at 10 lakh units per annum, with 65% utilization in FY25 (there’s runway). They just secured 75% of IKEA’s global non-US quartz sink business — a ₹20 crore capex investment that will generate ~₹140 crore in full-utilization revenue.
The stainless steel sink business is scaling fast. Capacity was 1.8 lakh units in FY25 (80%+ utilization). They’re expanding to 2.5 lakh units by Q4 FY26. The segment commands 23% of product revenue. Volume in Q3 was 36,974 units — up 23% YoY. Prices are holding; mix is shifting upward to premium Quadro and PVD-coated variants.
Kitchen appliances (chimneys, cooktops, ovens, dishwashers) are the growth frontier. Current capacity is 50,000 units. They’re scaling to 100,000 units p.a. across phases. The UAE/Gulf market does 80-90% appliances. Lowe’s in the US just gave them a “joint supplier best award” and plans to double SKUs in 2026. Domestic OEM interest (Kohler, Hafele) is building. The concall made clear: this vertical will compound at double digits.
Exports Revenue Mix~82.5%of FY26 sales
Domestic Growth (Q3)30%YoY expansion
Dealer Network4,000+India operations
Fun fact: Carysil’s IKEA deal represents 75% of IKEA’s global non-US quartz sink sourcing. No Indian company is bigger in this category. Yet the company still trades at a 19% discount to its 5-year average ROCE (15.4% vs 19.2% historical). The market is underpricing competency.
04 — Financials Overview
Q3 FY26: The Tariff Reset Started The Margin Party
Result type: Quarterly Results | Q3 FY26 EPS: ₹7.41 | Avg Q1–Q3 EPS: (₹8.02+₹9.56+₹7.41)/3 = ₹8.33 | Annualised EPS: ₹33.32
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 223 | 203 | 241 | +9.6% | -7.5% |
| Operating Profit | 42 | 29 | 46 | +45% | -8.7% |
| OPM % | 19% | 14% | 19% | +500 bps | flat |
| PAT | 21.9 | 12.5 | 27 | +75.1% | -18.9% |
| EPS (₹) | 7.41 | 4.40 | 9.56 | +68.4% | -22.5% |
The Story Behind The Numbers: Q3 revenue of ₹223 crore looks like a 9.6% YoY dip versus Q2 (QoQ -7.5%). But that’s misleading. Management disclosed in the concall that US tariff discounting (15-20% off) was in full effect during Q3. Sales volumes actually accelerated: quartz sinks +27% YoY, stainless steel +23% YoY. Operating profit jumped 45% YoY despite revenue being flat. Why? Because OPM expanded from 14% to 19% — a 500 bps improvement. Translation: Mix shifted upward. Raw material costs (MMA resin) came down sharply ($2.02 in April → $1.50 by Dec). And margins will re-expand even further once discount rollbacks hit the system in Q4. Q2 was their strongest quarter (₹241 cr revenue, ₹27 cr PAT) — now Q4 could be even better if tariff tailwind flows through.
💬 If tariff rollbacks happen in Q4 FY26, management’s own math suggests 15-20% discounts get reversed. That means ₹30-45 crore in potential revenue re-capture at similar margins. Is that already baked into expectations, or is there a hidden surprise in Q4? What’s your read?
05 — Valuation Discussion — Fair Value Range
Is ₹764 A Deal or Already Priced for Perfection?
