Carysil Ltd Management Discussions

ECONOMIC OVERVIEW

Global Economic Overview

The global economy in CY 2025 navigated a complex environment shaped by persistent geopolitical tensions, evolving trade policies, supply chain realignments, and changing monetary conditions. The West Asia conflict renewed concerns around global energy security, commodity prices, and trade flows. Continued disruptions in the Red Sea corridor and uncertainty around critical shipping routes such as the Strait of Hormuz contributed to higher freight premiums and supply chain complexities for businesses globally.

At the same time, sweeping tariff measures introduced by the US reshaped global commerce and prompted businesses to accelerate supply chain diversification, including the adoption of China Plus One strategies, to reduce dependency on concentrated manufacturing locations. Despite these headwinds, the global economy demonstrated resilience, supported by stable labour markets, technology-led investments, and easing inflationary pressures across several economies.

According to the IMF World Economic Outlook (April 2026), global real GDP growth is estimated at 3.4% in CY 2025 and is projected to moderate to

3.1% in CY 2026 before improving marginally to 3.2% in CY 2027, reflecting a cautious but stable trajectory amid ongoing external uncertainties.

Global Outlook

The global outlook continues to face elevated downside risks from geopolitical developments, evolving trade dynamics, and rising public debt levels. However, structural tailwinds, including accelerating investments in artificial intelligence, digital infrastructure, clean energy transition, and advanced manufacturing are expected to support the next phase of growth. The world trade order is undergoing structural change which is opening new opportunity for emerging economies, particularly in Asia, are poised to remain key contributors to global expansion, driven by favourable demographics and rising domestic consumption. Sustained adaptability and prudent decision-making will remain essential for navigating the evolving macroeconomic landscape.

Source: IMF World Economic Outlook, April 2026

Indian Economic Overview

India maintained strong macroeconomic momentum during 2025-26, reinforcing its position as the worlds fastest-growing major economy. Supported by resilient domestic consumption, government-led infrastructure spending, and structural reforms, the country continued to stand out amid a challenging global environment. Indias real GDP growth is estimated at 7.6% in 2025-26, following 7.1% in 2024-25 and 9.2% in 2023-24.

Real GDP Growth

	(%)
2025-26 (E)	7.6
2024-25	7.1
2023-24	9.2

E: Estimated

Source: MoSPI, PIB – Press Releases 2025-26

Indias manufacturing sector continued to gain momentum, supported by Production Linked Incentive (PLI) schemes, the National Manufacturing Mission, and increasing integration into global supply chains. The headline Consumer Price Index

(CPI) inflation remained broadly contained, protecting consumer purchasing power and creating a favourable environment for consumption-led growth.

The monetary environment turned increasingly supportive during 2025-26, marked by the

RBIs first rate-cut cycle since

2020. The central bank reduced the repo rate cumulatively to 5.25% by May 2026, signalling an accommodative stance expected to support housing demand, improve consumer affordability, and stimulate demand across housing-linked categories including kitchen and home improvement sectors.

Infrastructure development remained a key policy priority. The Union Budget 2026-27 reinforced the Governments commitment with an allocation of Rs12.2 Lakh Crore in capital expenditure directed towards logistics corridors, freight connectivity, urban infrastructure, and industrial ecosystems. India also continued strengthening trade partnerships through bilateral agreements with the UK, Europe, Australia, and the Middle East, deepening its integration into global value chains and creating long-term opportunities for manufacturing exporters. India-US bilateral trade deal underway will provide a significant boost to Indias trade.

Indian Outlook

Looking ahead, the RBI projects Indias GDP growth at approximately 6.7% for 2026-27. Strong domestic fundamentals, continued public investment, rising urbanisation, and a sustained policy focus on manufacturing and localisation are expected to support steady economic expansion. Indias expanding middle class, increasing aspirations for premium lifestyles, and growing adoption of organised home solutions position the economy for sustained, broad-based growth aligned with the vision of Viksit Bharat 2047.

INDUSTRY OVERVIEW

Global Kitchen Sink Market

The kitchen has evolved from a purely functional space into a central expression of lifestyle, comfort, and contemporary home design. Kitchens increasingly serve as a focal point in residential interiors, driving demand for premium and design-led fixtures that enhance both aesthetics and functionality. This transformation has accelerated consumer adoption of feature-rich kitchen sinks, particularly quartz composite and premium stainless steel solutions, across mature and emerging markets alike.

The global kitchen sink market is on a steady growth trajectory, driven by new installations in developing economies, renovation-led replacement demand in mature markets, and rising adoption of modular and smart kitchen ecosystems. The market was valued at USD 3.8 Billion in CY 2025 and is projected to reach USD 7.0 Billion by CY 2035, growing at a CAGR of

6.2% from CY 2026 to CY 2035.

North America remains the largest and most mature market, supported by strong remodelling activity, high homeownership levels, and growing consumer preference for premium kitchen upgrades. Europe closely follows, driven by replacement demand and a strong sustainability focus. Asia-

Pacific is the key growth engine, fuelled by rapid urbanisation and rising disposable incomes.

Region CAGR (2026-2035)

North America	(4.5%)
Middle East and Africa	5.2%
Latin America	5.1%
Europe	5.7%
Asia-Pacific	6.6%

Source: Global Market Insights Inc.

Key Market Trends

Growing adoption of modular and design-led kitchen solutions combining functionality with aesthetics

Rising preference for durable, low-maintenance materials including quartz composites and premium stainless steel

Increasing demand for compact, multifunctional, and customised sink configurations

Integrating smart and touchless technologies to enhance convenience and hygiene

Rising sustainability focus driving demand for eco-friendly, water-efficient materials and manufacturing practices

Expanding organised food service and hospitality sectors driving commercial-grade sink demand

Key Challenges

Managing high installation and lifecycle costs across price-sensitive markets

Navigating intensifying competition and margin pressures from market saturation especially in steel sink category

Balancing cost efficiency product development investments

Adapting to evolving regulatory and compliance requirements across markets

Quartz Sink Market

Quartz kitchen sinks have gained strong preference among modern homeowners by combining exceptional strength, functionality, and sophisticated design. Engineered from natural quartz blended with advanced resin technology, these sinks deliver superior durability, heat and stain resistance, and a wide range of premium finishes. The quartz kitchen sink market is expected to grow from USD 2.3 Billion in CY 2025 to USD 3.8 Billion by CY 2034, expanding at a CAGR of 6.2%.

P: Projected

Source: For Insights Consultancy; SkyQuestt

Key Highlights

Scratch-resistant Surface

Dense, non-porous quartz surface resists daily wear, preserving its premium finish over time

Heat and Stain Resistance

Withstands high temperatures and resists stains from common kitchen substances including wine, coffee, and oils

Hygienic Design

Smooth, non-porous structure inhibits bacterial and mould growth, supporting safe food preparation environments

Noise Reduction

Natural sound-absorbing properties minimise noise from water flow and utensils

Stylish Aesthetics

Available in a wide array of colours, matte finishes, and premium textures complementing modern and traditional kitchens

Sustainability

Fully recyclable, aligned with growing demand for environmentally responsible products

Low Maintenance

Requires only mild soap and water for cleaning, eliminating the need for specialised care

Stainless Steel Sink Market

Stainless steel remains the dominant material in the global kitchen sink segment, valued for its proven combination of durability, corrosion resistance, and cost-effectiveness. Stainless steel sinks have evolved beyond traditional formats to include premium finishes, workstation configurations, handmade options, and PVD-coated designs, increasingly appealing to premium residential and commercial kitchen segments. The global stainless steel sink market is projected to grow from USD 2.8 Billion in CY 2025 to USD 3.7 Billion by CY 2030, at a CAGR of 5.74%.

Key Highlights

Exceptional Durability

High-grade stainless steel alloys provide superior strength and resistance against dents, cracks, and daily wear

Heat and Corrosion Resistance

Withstands high temperatures and moisture exposure without warping, discolouration, or corrosion

Premium Finishes and Innovation

Advanced finishes such as PVD coatings, matte textures, and designer surfaces enhance visual appeal and durability

VersatileConfigurations

Available in single bowl, double bowl, undermount, farmhouse, and workstation formats adaptable to diverse kitchen layouts

Eco-friendly and Recyclable

Fully recyclable and increasingly manufactured using recycled content, supporting sustainable material consumption

Cost-effective Solution

Practical combination of performance and affordability for both residential and commercial applications

Indias Kitchen Sink Market

Indias kitchen sink market continues to witness strong growth, supported by rapid urbanisation, rising disposable incomes, increasing residential construction, and evolving consumer preferences towards modern kitchen spaces. The growing adoption of modular kitchens, expansion of organised housing projects, and increasing investments in home renovation are accelerating demand for premium kitchen solutions. Stainless steel continues to dominate volumes, while premium categories such as quartz composites are gaining traction among urban consumers seeking design-led solutions.

Indias Kitchen Sink Market CAGR (2026-2031) 11.24%

	USD Million
CY 2031 P	521.30
CY 2026 P	332.06
(CY 2025)	301.32

P: Projected

Source: Mordor Intelligence

Key Growth Drivers

Modular Kitchen Adoption

Driving demand for integrated sink systems, workstation designs, and coordinated kitchen accessories

Rising Residential Construction

Premium housing projects and developer-specified branded fixtures creating predictable demand for organised players

Hygiene-driven Preferences

Increasing demand for non-porous, stain-resistant, and easy-to-clean surfaces including growing popularity of undermount sinks

E-Commerce and Organised Retail

Expanding channels improving accessibility and influencing consumer purchase decisions

Premiumisation

Consumer preference shifting towards quartz composites, advanced stainless steel, and designer formats

Commercial Sector Expansion

Hotels, restaurants, and institutional kitchens driving demand for high-performance, multi-functional sinks

Global Kitchen Appliances Market

The global kitchen appliances market continues to grow steadily, supported by replacement demand in mature markets and rising adoption across emerging economies. Regulatory changes and energy-efficiency standards are accelerating upgrade cycles, while smart and AI-enabled appliances are driving product innovation. The market is estimated at USD 310.93 Billion in 2025 and is projected to reach USD 393.88 Billion by 2031 at a CAGR of 4.02%.

Global Kitchen Appliances Market

	USD Billion
(CY 2031 P)	393.88
(CY 2025)	310.93

P: Projected

Source: Mordor Intelligence

India Kitchen Appliances Market

Indias kitchen appliances market is experiencing strong momentum, supported by rising urbanisation, increasing disposable incomes, and evolving lifestyle preferences. The shift towards nuclear families, growing participation of working professionals, and rising preference for convenience-led living are driving demand for modern, energy-efficient, and smart kitchen appliances. The market is estimated at USD 11.41 Billion in 2025 and projected to reach USD 17.24 Billion by 2031 at a CAGR of 7.12%.

India Kitchen Appliances Market

	USD Billion
(CY 2031 P)	17.24
(CY 2025)	11.41

P: Projected

Source: Mordor Intelligence

Key Growth Drivers

Rising Smart Appliance Adoption

Demand for Wi-Fi-enabled, voice-activated, and AI-powered built-in appliances is increasing with connected-home adoption

Modular and Premium Kitchen Growth

Rapid adoption of modular kitchens accelerating demand for built-in, aesthetically integrated appliances

Energy Efficiency Focus

Eco-conscious consumers opting for appliances with inverter technology, lower energy consumption, and sustainable features

BIS Certification Opportunities

Evolving BIS certification requirements (IS 302 Part 1:2024, applicable from February 2027) creating localisation opportunities for compliant domestic manufacturers

E-Commerce and Omnichannel Expansion

Growing organised retail and e-commerce penetration broadening market accessibility across urban and emerging markets

Global Faucet Market

Faucets are evolving from functional plumbing fixtures into integrated lifestyle and design solutions within modern kitchens and bathrooms. Demand continues to rise for coordinated sink-faucet ecosystems, premium finishes, smart water management technologies, and hygiene-focused innovations including touchless operation and filtered water integration. The global faucet market reached USD 33 Billion in CY 2025 and is expected to reach USD 59.3 Billion by CY 2034, registering a CAGR of

6.37% during 2026-2034.

Global Faucet Market

	USD Billion
(CY 2034 P)	59.3
(CY 2025)	33

P: Projected

Source: IMARC Group

Global Bath and Shower Products Market

Bath and shower products are evolving beyond traditional utility, becoming integral components of modern wellness-oriented living.

Consumers are increasingly adopting sensor-based fittings, touchless technologies, smart showers, and sustainable products that improve convenience, hygiene, and resource efficiency. The global bath and shower products market is projected to grow from USD 51.68 Billion in CY 2025 to USD 65.71 Billion by CY 2031, at a CAGR of 4.39%.

Source: Mordor Intelligence

Global Countertop Market Overview

The global countertop market is evolving from a material-centric industry to one defined by performance, design consistency, and execution capabilities. Premiumisation is expanding beyond luxury segments into mainstream renovation cycles, with increasing preference for engineered stone, quartz surfaces, and sustainable composites. The global countertops market reached USD 155.14 Billion in CY 2025 and is expected to reach USD 195.41 Billion by CY 2031, at a CAGR of 3.92%.

Global Countertop Market Overview CAGR (2026-2031) 3.92%

	USD Billion
(CY 2031 P)	195.41
(CY 2025)	155.14

P: Projected

Source: Mordor Intelligence

Global Engineered Stone Countertop Demand by Area of Installation

(Million sq. metre)

Segment	2013	2018	2023	2028P	CAGR 2018-23	CAGR 2023-28P
Global Demand	30,737	57,107	74,256	96,803	5.4%	5.4%
New Residential	2,367	5,039	7,937	11,484	9.5%	7.7%
Residential Remodelling	19,159	37,236	48,785	62,836	5.6%	5.2%
New Non-Residential	5,957	8,911	10,140	13,190	2.6%	5.4%
Non-Residential Remodelling	3,254	5,921	7,394	9,293	4.5%	4.7%

COMPANY OVERVIEW

Carysil Limited (also referred to as Carysil or The Company) now entered into next growth orbit with Carysil 2.0. Anchored in its vision of building the Largest Integrated Kitchen Solutions Hub in India and its long-term aspiration of reaching a USD 1 Billion revenue, the roadmap is shaping the

Companys next phase of value creation.

Leveraging its diversified presence across quartz sinks, stainless steel sinks, kitchen appliances, faucets, and surfaces, Carysil further strengthened its position as an integrated kitchen solutions provider across domestic and international markets. The Companys strategic initiatives, expanding manufacturing capabilities, and continued focus on premiumisation supported another year of healthy growth, with consolidated revenue reaching Rs924 Crore and consolidated PAT growing by 53.9% to Rs99.0 Crore.

During the year, Carysil expanded manufacturing capabilities across key categories, operationalised Phase 1 chimney and faucet manufacturing, and strengthened appliance localisation initiatives. The Company also accelerated its premiumisation strategy through introduction of potable water faucets with RO-integrated, PVD-coated products, AI-enabled smart appliances, matching workstation and sink designs across both quartz and stainless steel categories. It further strengthened global OEM and retail partnerships, broadened its international footprint across the GCC, UK, Europe, and US markets, and enhanced its integrated kitchen solutions platform.

Segmental Developments

Quartz Sinks Segment

The Quartz Sink segment remained a key growth driver during 2025-26, supported by rising global demand for premium, durable, and design-oriented kitchen solutions. The segment delivered strong performance driven by expanding partnerships with leading global retailers and OEM customers, including IKEA, Howdens, Karran, and Lowes. Carysils wallet share in IKEAs non-US quartz sink sourcing increased significantly from approximately 25% to 75%, reflecting deepening customer relationships and growing global acceptance of the Companys products.

Healthy capacity utilisation of approximately 78% on existing capacity of 1.0 Million units, reflecting sustained demand momentum across export markets

Capacity expansion initiated from 1.0 Million to 1.25 Million units per annum, supported by an investment of approximately Rs50 Crore, with commissioning planned for Q4 2026-27

Portfolio enhanced with new finishes, workstation-led formats, colour innovations, and premium product configurations tailored to evolving consumer preferences

Domestic market advancing with increasing adoption of premium quartz sink designs and workstation sinks, positioning the Company for value-driven growth

Particulars	2025-26	2024-25
Units Sold	7.82 Lakh Units	6.45 Lakh Units
Revenue	Rs465.85 Crore	Rs363.61 Crore
Capacity Utilisation	78%	65%

Stainless Steel Sinks Segment

Carysils stainless steel sink segment demonstrated strong growth in 2025-26, fuelled by solid demand across domestic and international markets, with significant traction in the UK and Europe. The segment operated at 93% capacity utilisation, reflecting strong customer acceptance and growing demand for the Companys differentiated stainless steel offerings. Favourable market dynamics and the China Plus One strategy have led to a meaningful increase in inquiries and orders.

Maintained strong capacity utilisation of approximately 93%, reflecting healthy demand and manufacturing

Phase I capacity expansion of 70,000 units completed in Q1 2026-27, increasing total stainless steel capacity to 2,50,000 units per annum

Long-term expansion roadmap targets 5.0 Lakh units per annum, supported by investments in infrastructure, moulds and advanced fabrication technologies and automation

Portfolio differentiated through Quadro handmade fabricated sinks, PVD-coated sinks, and premium stainless steel workstation solutions with thicker gauge materials

Deepened OEM partnerships with leading global brands including Kohler and H?fele while expanding its presence across key international markets

Kitchen Appliances, Faucets and Other Products

The kitchen appliances, faucets and others segment continued to strengthen in 2025-26 as Carysil accelerated its journey towards becoming a complete kitchen solutions provider. The segment gained encouraging traction, supported by rising modular kitchen adoption, premiumisation trends, increasing OEM interest, and import substitution opportunities arising from evolving BIS regulations.

Commenced Phase 1 in-house manufacturing of kitchen hoods and hobs with an annual capacity of 50,000 units, marking an important step towards building localised appliance manufacturing capabilities

Phase 2 expansion covering hobs, ovens, microwaves, food waste disposers, and other built-in solutions is underway, targeting total capacity of 1,00,000 units per annum in 2026-27

Operationalised faucet assembly-cum-manufacturing facilities with initial capacity of 50,000 units per annum, with expansion to 1,00,000 units planned for completion in 2026-27

Introduced next-generation kitchen solutions including filter-less plasma hood chimneys, downdraft induction hobs, hybrid cooking solutions, RO-integrated faucets, and PVD-coated advanced faucets

Stainless steel and brass faucets were launched, including lead-free solutions compliant with US and European standards

Particulars	2025-26	2024-25
Units Sold	1,67,000 Units	1,55,300 Units
Revenue	Rs80.06 Crore	Rs66.96 Crore
Capacity Utilisation	93%	80%

 

Particulars	2025-26
Kitchen Appliances Sold	35,000 Units
Faucets Sold	36,000 Units

1 Carysil FZ-LLC (GCC)

Carysil FZ-LLC continued to deliver strong growth in 2025-26, supported by healthy demand across the Middle East region. The appliances category remained the key growth driver, contributing more than 90% of the UAE business. The subsidiary continued to strengthen its regional presence through deeper customer relationships in Abu Dhabi, Saudi Arabia, and Qatar and expansion of branded experience centres in Dubai, Sharjah, Muscat.

2 Carysil Products and Carysil Surfaces Limited (UK)

The UK subsidiaries faced challenges due to prevailing economic situation; however, they continued to strengthen its presence through new customer acquisitions. It will further benefit from the free trade agreement between India and the UK, along with cost advantages over European competitors. Key customer relationships deepened with leading UK kitchen and home improvement players including Howdens, and many new customers to be added in 2026-27, driven by growing preference for reliable Indian sourcing alternatives. The Company has also advanced European market development through the appointment of a Germany-based business development manager, strengthening presence across Germany and neighbouring markets. 3 United Granite LLC (USA)

United Granite LLC delivered a remarkable turnaround in 2025-26 after navigating a challenging period. Strategic initiatives undertaken towards material sourcing, operational efficiency, cost optimisation, and business realignment have delivered results, enabling the subsidiary to achieve profitability during the year. United Granite reported a positive EBITDA of Rs11.4 Crore in 2025-26 compared to an EBITDA loss of Rs1.3 Crore in 2023-24, marking a significant turnaround. The subsidiary remains focused on expanding its premium surface portfolio and enhancing its competitive position in the US market.

4 Domestic Business Expansion

Carysil continued to strengthen its domestic business through expansion of dealer and distributor networks, organised retail presence, galleries, and e-commerce initiatives across India. The Company remained focused on scaling its premium kitchen solutions, OEM partnerships, and multi-channel growth across modern retail, modular kitchen ecosystems, and digital platforms. Looking ahead, key developments include expanding the dealer network from 4,500 to 10,000 dealers, launching a dedicated B2B business vertical targeting architects, builders, developers, and institutional customers, and pursuing a mid-term domestic revenue target of over Rs500 Crore over the next 5-6 years.

FINANCIAL PERFORMANCE

Standalone Performance

Standalone total income increased by 20.1% to Rs504.6 Crore in 2025-26 from Rs420.3 Crore in 2024-25. Standalone Profit

72.6% to Rs63.7 Crore from Rs36.9 Crore in the previous year, reflecting strong operating leverage, better product mix, and margin improvement.

Consolidated Performance

Carysils consolidated revenue grew by 13.3% to Rs924.0 Crore in 2025-26 from Rs815.6 Crore in 2024-25. Export sales climbed to Rs745.6 Crore from Rs671.2 Crore in 2024-25. Consolidated PAT grew by 53.9% to Rs99.0 Crore compared to Rs64.3 Crore in the previous year. PAT after minority interest stood at Rs98.2 Crore versus Rs63.7 Crore previously. Consolidated EBITDA margins improved to 19.9% in 2025-26 from 17.3% in 2024-25, driven by operational efficiencies, better product mix, and stabilisation in freight and raw material costs. Earnings per share (EPS) on a consolidated basis improved to Rs34.52 from Rs22.76 in the previous fiscal year. The Board of Directors has recommended a dividend of 150%.

To support future growth, the Company invested approximately Rs68 Crore in capital expenditure during 2025-26, directed towards automation, mould development, capacity enhancement, manufacturing infrastructure, and technology upgrades.

Key Financial Ratios (Standalone)

Key Financial Ratio	2025-26	2024-25	Change (%)	Reason for Change
Current Ratio (times)	1.81	1.81	-	Broadly stable; marginal movement reflects proportionate growth in both current assets and current liabilities in line with business scale
Debt-Equity Ratio (times)	0.24	0.30	(20.33%)	Reduction in borrowings and increase in net worth driven by retained earnings; improved leverage position reflecting lower reliance on debt financing
Return on Equity (%)	14.55%	11.10%	+31.10%	Significant increase in net profit leading to higher returns generated on shareholders equity
Inventory Turnover (days)	82.36	84.81	(2.88%)	Marginal improvement in inventory holding period; faster movement of stock relative to cost of goods sold
Trade Receivables Turnover (days)	67.04	74.58	(10.11%)	Improvement in debtor collection cycle; receivables realised faster reflecting stronger credit management and collection efficiency
Trade Payables Turnover (days)	61.28	70.57	(13.17%)	Reduction in creditor payment days; the Company settling dues to vendors faster, which may reflect early payment discounts or revised credit terms with suppliers
Net Capital Turnover (times)	3.82	3.29	+16.24%	Higher revenue generation relative to net working capital, indicating improved efficiency in deploying working capital to drive sales
Net Profit Ratio (%)	12.83%	8.78%	+46.11%	Substantial improvement in net profit margin driven by higher revenues, better cost absorption, and reduction in finance costs/other expenses relative to revenue
Return on Capital Employed (%)	16.38%	11.22%	+45.95%	Higher EBIT relative to capital employed; reflects significant improvement in operating profitability and more efficient utilisation of total capital base

RISK MANAGEMENT

Carysil Limited follows a structured and proactive approach to identify, assess, and manage risks across its operations and markets. This framework supports informed decision-making and enables the Company to respond effectively to evolving external and internal challenges.

Risk Category	Risk Description	Mitigation Approach
Macroeconomic and Geopolitical	Global and domestic economic cycles, inflation, geopolitical tensions, and trade policy changes may impact demand, input costs, and business stability.	Continuously monitoring macroeconomic developments, maintaining geographic diversification with over 90% of exports on FOB terms, and maintaining operational flexibility.
Foreign Exchange	Significant export exposure with approximately 60% USD, 20% Euro, and 20% GBP makes the business vulnerable to currency fluctuations impacting pricing and margins.	Maintaining a structured hedging strategy covering 50-60% of exposures through forward contracts and actively monitoring currency movements.
Competitive Intensity	Competition from international and regional players across the US, UK, Europe, and 55+ other countries may impact market share, pricing, and profitability.	Focused on product innovation, quality leadership, cost- competitive manufacturing, brand positioning, and long- standing customer relationships.
Regulatory and Compliance	Evolving product standards, BIS certification requirements (including IS 302 Part 1:2024 from February 2027), and environmental norms may increase compliance obligations.	Established internal compliance frameworks and investing in operational kitchen hood, faucet, and appliance manufacturing to address emerging localisation requirements.
Distribution and Go-to- Market	Ineffective marketing or distribution limitations may impact demand generation and market penetration.	Strengthening dealer network (4,500+ dealers), launching B2B vertical, expanding experience centres, and investing in omnichannel including FOFO model and e-commerce.
Product Quality	Any compromise in product quality may impact customer satisfaction, brand reputation, and profitability.	Maintaining advanced manufacturing processes, global quality certifications, German technology, automation-led precision, and stringent quality control systems.
IT and Cybersecurity	Increasing digitalisation exposes the business to cybersecurity threats and data breaches.	Implemented IT governance, secure access controls, regular backups, licensed antivirus and firewall solutions, and structured vendor due diligence.
Customer Concentration	Dependence on the US market, IKEA, and select large customers may create concentration-related risks.	Diversifying customer base across geographies, channels, and categories while strengthening domestic business and global partnerships.
Tariff/Trade Policy	Changes in US-India tariff structures and global trade policies may impact export competitiveness and demand visibility.	Diversifying export markets, strengthening OEM partnerships, and leveraging India-UK FTA and other bilateral agreements to improve market access.
Raw Material (MMA, PMMA) Price	Volatility in MMA and PMMA prices, a key input for manufacturing of quartz sinks, may impact margins and profitability.	Active raw material monitoring, strategic sourcing, optimised inventory planning, and calibrated pricing actions to manage cost volatility.

HUMAN RESOURCES

People remain central to Carysils growth, innovation, and long-term value creation journey. During the year, the Company strengthened its organisational capabilities through talent acquisition, leadership enhancement, and capability building. It also expanded specialised teams across manufacturing, appliances, international business, and brand development to support evolving business priorities.

Carysil continued to invest in employee learning and capability enhancement through technical, behavioural, and leadership development programmes. Focus areas included manufacturing excellence, product knowledge, customer engagement, digital systems, and leadership readiness. The Company received the prestigious

Great Place to Work certification, reflecting its commitment to a high-performance, inclusive, and engaging workplace culture.

The Company remains focused on fostering an inclusive, performance-driven, and collaborative workplace supported by employee engagement initiatives, well-being programmes, and career progression opportunities. It continues to strengthen talent retention, succession planning, and organisational development practices to build a future-ready workforce capable of supporting its next phase of global expansion.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Carysil Limited has established internal control systems aligned with its scale, business nature, and operational complexity. These systems are designed to provide reasonable assurance in safeguarding assets, ensuring that transactions are duly authorised, accurately recorded, and transparently reported. The Company continuously monitors operational risks and implements timely corrective measures wherever required.

The framework also reinforces the integrity and reliability of both financial and operational information, enabling a true and fair view of overall performance. Regular internal audits, process reviews, and management oversight mechanisms further strengthen the effectiveness of the control environment across operations.

CAUTIONARY STATEMENT

This Management Discussion and Analysis may include forward-looking statements based on current expectations, estimates, and projections. Actual results may differ materially due to various internal and external factors, including economic conditions impacting demand, supply and pricing in domestic and international markets, regulatory changes, tax legislation, and other unforeseen variables beyond the Companys control. The Company undertakes no obligation to publicly update any forward- looking statements, which reflect the views of management as of the date of this report.

Disclaimer: Industry data, market estimates, and forecasts referred to in this section have been derived from publicly available industry reports, research publications, and management estimates. While the Company believes such sources to be reliable, it has not independently verified the information.