Murudeshwar Ceramics FY26: ₹205 Cr of Tiles, ₹11 Cr of Profit, and a Warehouse Holding 880 Days of Stock

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1 — At a Glance

Murudeshwar Ceramics closed FY26 with revenue of ₹205 crore and net profit of ₹11.26 crore — the highest annual profit in the decade the data covers, up from ₹9.92 crore the year before. Full-year EPS reached ₹1.86. Against that, the market values the whole company at ₹194 crore, which works out to 0.51 times its book value of ₹62.7 per share.

The attention signal is the profit trajectory: net profit has compounded 24% a year over five years off a FY21 loss of ₹11.87 crore. The worry signal sits on the balance sheet, where inventory of ₹114.58 crore represents roughly 880 days of stock — a company that manufactures tiles faster than South India can buy them. ROE for the year was 3.0%, and over three years it averaged 2.4%.

A profit line that keeps climbing while the equity earns 3% is a specific kind of tension: the business is expanding, and the return on the capital funding that expansion is barely detectable.

The Q4 print, meanwhile, went the other way entirely. More on that below.

2 — Introduction

Incorporated in 1983, Murudeshwar Ceramics is part of the RN Shetty Group and manufactures glazed ceramic floor tiles, vitrified porcelain, and natural granite slabs, sold under the Naveen brand. It is chaired by Satish R Shetty, Chairman and Managing Director. Products move directly to real-estate entities and through retail channels, displayed across 73 company-owned showrooms and stored in 42 depots.

The recent record is procedural and quiet. The board approved audited standalone and consolidated FY26 results on 29 May 2026, carrying an unmodified audit opinion from K.G. Rao & Co. The trading window closed on 1 July 2026 ahead of Q1 FY27 numbers. On the credit side, Crisil reaffirmed its Crisil BB/Stable and A4+ ratings on ₹117.85 crore of bank facilities on 26 May 2026, having upgraded the long-term rating a notch to BB in February 2025.

One item from March 2025 sits in the record without embellishment: the company was fined for non-compliance with SEBI regulations.

The through-line across four decades is a mid-sized regional tile maker that keeps making tiles, keeps servicing debt, and keeps the promoter family firmly in control at 73.9%.

3 — Business Model: WTF Do They Even Do?

They bake clay into tiles and sell them. The Naveen catalogue runs from 10×15 digital wall tiles through double-charge, full-body, glazed and polished vitrified floor tiles, out to exterior and bathroom ranges. FY23 disclosures split revenue into manufactured goods (~59%), traded goods (~9%), and — the odd one — earth-work services (~32%). A tile company where a third of stated revenue came from moving dirt is the kind of segment note that makes you read it twice.

The physical footprint is real: plants at Sira (vitrified) and Karaikal (ceramic wall tile), export shipments to markets from the USA to Uzbekistan, and 309 permanent employees. Capacity utilisation, where the record shows it, ran around 54% — the ovens spend a meaningful share of the year idle.

The cost structure is where the story tightens. Power and fuel alone consumed ₹58.13 crore in FY26 against ₹205 crore of sales — the single largest expense line, larger than raw material at ₹47.5 crore. Crisil notes LNG and propane make up 35% of cost of goods sold. This is a business whose margins are hostage to a gas bill.

For a manufacturer, the interesting number isn’t what it makes. It’s what it can’t sell fast enough — and that lives in Section 7.

4 — Financials Overview

Figures are standalone, in ₹ crore.

The quarter is a study in where profit disappears. Q4 revenue of ₹62.64 crore fell 5.7% against last year’s ₹66.40 crore but rose sharply over the ₹51.11 crore of the prior quarter. Operating profit of ₹9.71 crore was healthy. Yet PAT landed at just ₹1.46 crore, down 57.8% year on year — because the tax charge for the quarter ran at 62.47%, against near-zero tax rates in the middle quarters of the year. The