FY26 was marked by resilience amid renewed geopolitical disruption. Global real GDP growth moderated to approximately 3.2% in 2025 and is estimated at 3.1% for 2026 - a downward revision from earlier projections, primarily reflecting the economic impact of the conflict in the Middle East and its effect on oil markets and global supply chains. This compares with average global growth of around 3.4% recorded in 2024-25 and the longer-run 2000-19 average of 3.7%.
Advanced Economies grew at approximately 1.5% in 2025, with growth expected to improve marginally to 1.8% in 2026 supported by fiscal stimulus and lower policy rates in several major economies, including the United States. Emerging Market and Developing Economies continued to outpace advanced peers, growing around 4.0% in 2025 and a projected 3.9% in 2026, with Asia - led by China and India - remaining the principal engine of global growth, trade and manufacturing activity.
The global trade and investment landscape continued to be shaped by elevated tariffs, regionalization of supply chains and a shift towards industrial self-sufficiency. Inflation, while broadly on a declining path, is expected to tick up modestly in 2026 in several emerging markets, particularly commodity importers, before resuming its downward trajectory in 2027. Defense spending also rose meaningfully amid intensifying geopolitical tensions, with implications for fiscal balances in several economies.
GDP Growth: Advanced vs Emerging Economies (2024-2026)
| 2024 (Actual) | 2025 (Est.) | 2026 (Proj.) | |
| World Output | 3.3% | 3.2% | 3.1% |
| Advanced Economies | 1.9% | 1.5% | 1.8% |
| Emerging Market & Developing Economies | 4.2% | 4.0% | 3.9% |
| China | 5.4% | 5.0% | 4.4% |
| India | 8.2% | 6.5% | 6.4% |
Source: IMF World Economic Outlook, April 2026; India figures on fiscal-year basis (NSO)
Downside risks to the global outlook remain elevated, including a potential escalation or prolongation of the Middle East conflict, disappointment over AI-driven productivity gains, and renewed trade tensions. Policymakers are expected to focus on restoring fiscal buffers, preserving price and financial stability, and reinforcing international cooperation to support medium-term growth prospects.
Manufacturing Performance Comparison - FY26
| Region | Performance | Key Drivers / Constraints |
| Asia (China, India, SE Asia) | Strong output | Domestic demand, infra investment, export diversification |
| North America | Moderate recovery | Fiscal stimulus, lower policy rate, easing trade barrier impact |
| Europe | Slow growth | High energy costs, geopolitical uncertainty, weak demand |
Source: IMF Sectoral Patterns & Manufacturing Trend Notes, April 2026 WEO
India retained its position as the worlds fastest-growing major economy through FY26. As per the Second Advance Estimates released by the National Statistical Office (NSO) under the revised 2022-23 base year, Indias real GDP is estimated to have grown by 7.6% in FY 2025-26, an improvement over the revised 6.5% (formerly reported as 6.5%, now restated under the new base) recorded in FY 2024-25. Nominal GDP growth for FY26 is estimated at 8.6%, with Indias nominal GDP placed at approximately ? 345.47 lakh crore.
Growth was broad-based, with manufacturing recording double-digit expansion and the services sector growing strongly, particularly in trade, hotels, transport, communication and financial and real estate services, which together grew in excess of 9-10%. Within industry, manufacturing and construction together grew at a healthy pace, directly benefiting demand for building materials including tiles, sanitaryware and quartz surfaces.
Inflation remained well within the Reserve Bank of Indias comfort zone through FY26, supported by a sustained decline in food prices. Headline CPI inflation fell to an eight-year low during the year before edging up modestly, and the RBI revised its full-year inflation forecast downward to around 2.1-2.6% significantly below its medium-term target. This benign inflation backdrop, together with cumulative repo rate cuts of 125 basis points during the year, supported credit growth, consumption and investment activity.
On the fiscal front, the Union Budget 2025-26 maintained its focus on capital expenditure, with effective capex reaching around 4% of GDP, while revenue expenditure continued to moderate as a share of GDP, creating fiscal space for sustained infrastructure investment. Centre-State transfers also rose sharply during the year, supporting state-level infrastructure and urban development spending - both important demand drivers for the building materials sector.
Indias real estate and construction sectors remained key beneficiaries of this macro backdrop. Strong housing sales, continued urban expansion into Tier-II and Tier-III cities, and robust commercial office absorption supported sustained demand for tiles, sanitaryware and related surface materials. Per-capita tile consumption in India continues to trail global averages meaningfully, underscoring the long runway for structural demand growth as incomes rise and urbanization deepens.
Indias Real GDP Growth Rate (NSO Second Advance Estimates, FY 2025-26)
| FY2022-23 | FY2023-24 | FY2024-25 (Revised) | FY2025-26 (2nd Adv. Est.) |
| 7.1% | 9.2% | 6.5% | 7.6% |
The global ceramic tiles market was valued at approximately USD 226.41 billion in 2025 and is projected to reach USD 243.92 billion in 2026, growing further to an estimated USD 380.61 billion by 2033 at a compound annual growth rate of around 6.6%. Asia-Pacific continued to dominate the global market, accounting for nearly 69% of global revenue in 2025, driven by rapid urbanization, infrastructure expansion and rising middle-class housing demand across China, India and South-East Asia.
Porcelain and vitrified tiles continued to gain share over traditional ceramic variants due to their durability, low water absorption and ease of maintenance, with the porcelain tiles segment accounting for over half of global market revenue. Floor tile applications remained the largest demand category globally, while wall tile applications are expected to grow at a faster pace going forward. Sustainability considerations, including energy-efficient kilns and recycled raw material inputs, continued to shape manufacturer investment priorities across major producing regions.
Global Ceramic Tiles Market Size (USD Billion)
| 2024 (Est.) | 2025 (Actual) | 2026 (Proj.) | 2033 (Proj.) |
| USD 210.5B | USD 226.4B | USD 243.9B | USD 380.6B |
Indias ceramic tiles industry continued to expand steadily through FY26, supported by sustained construction and real estate activity. The domestic ceramic tile market is estimated at approximately USD 10.45 billion in 2025, with industry research projecting growth to around USD 11.30 billion in 2026 and further expansion at a compound annual growth rate of approximately 8-10% over the medium term.
India remains the worlds second-largest producer and consumer of ceramic tiles after China, with an annual production capacity of approximately 1.3 billion square metres against domestic consumption of around 780 million square metres.
The Morbi cluster in Gujarat continued to anchor Indias tile manufacturing base, contributing a significant majority of national output through its network of more than 800 manufacturing units. West India remains the dominant production hub, while South India is emerging as the fastest-growing demand region, supported by IT-driven residential and industrial corridors.
Export markets remained mixed during the year. While anti-dumping duties imposed by Saudi Arabia, Qatar and certain other markets continued to weigh on shipments to those geographies, Indian exporters benefited from a structurally favorable position in the United States, where steep tariffs on Chinese tile imports reduced Chinas competitiveness and created room for Indian manufacturers to gain share, subject to meeting buyer specifications and compliance requirements.
The industry also continued to see a gradual product mix shift towards large-format porcelain slabs and value-added, design-led tiles, even as glazed ceramic tiles continued to dominate affordable housing and Tier-II city demand. Investment in energy efficiency - including hydrogen-ready kilns and solar thermal pre-heaters - has become an increasingly important differentiator for manufacturers seeking to manage input cost volatility, particularly in natural gas.
Exxaro Tiles Limited is a well-established manufacturer of high-quality vitrified tiles with a track record spanning over a decade since commencing operations in 2013. The Company focuses on two primary product categories - double-charge vitrified tiles and glazed vitrified tiles - catering to residential, commercial and institutional flooring requirements.
The Companys manufacturing operations are anchored at two fully integrated plants at Padra and Talod in Gujarat, benefiting from reliable access to natural gas, raw material proximity and competitive logistics infrastructure. Both facilities handle the complete production cycle - material handling, pressing, glazing, firing, sorting and packing - with in-house testing capabilities ensuring stringent quality control.
Exxaro maintains a wide distribution network spanning 27 states across India, with particularly strong penetration in the northern and western regions. During FY26, the Company maintained its export presence across 11 countries, including Bhutan, Bulgaria, Croatia, Ghana, Iraq, Libya, Morocco, South Africa, Sudan, Tunisia and Panama, reflecting a deliberate strategy of diversifying into newer geographies amid evolving global trade dynamics.
Key Financial Indicators - FY 2025-26 vs FY 2024-25
| Particulars | FY 2025-26 ( \u20b9 Lakhs) | FY 2024-25 ( \u20b9 Lakhs) |
| Total Income | 28,253.14 | 30,421.49 |
| Cost of Materials Consumed | 10,474.53 | 9,762.99 |
| Employee Expenses | 2,609.27 | 2,781.10 |
| Finance Costs | 1,195.73 | 1,196.69 |
| Depreciation & Amortisation | 966.41 | 951.77 |
| EBITDA | 2,392.44 | 2,321.53 |
| Profit Before Tax (PBT) | 301.16 | 173.07 |
| Profit After Tax (PAT) | 210.58 | (12.17) |
All figures in ? Lakhs, on an actual basis for FY 2025-26.
The Company reported total income of 28,253.14 Lakhs for FY 2025-26, compared to 30,421.49 Lakhs in FY 2024-25, a decline of approximately 7.1% year-on-year. The moderation in topline reflected softer pricing conditions in the domestic tiles market and continued competitive intensity, partly offset by the Companys consistent presence across its 27-state dealer network and steady export contribution across its 11-country footprint.
Cost of materials consumed increased to 10,474.53 Lakhs from 9,762.99 Lakhs in FY 2024-25, reflecting input cost movements even as overall production volumes were broadly maintained. Employee expenses declined to 2,609.27 Lakhs from 2,781.10 Lakhs in FY 2024-25, reflecting disciplined cost management during the year. Finance costs were largely stable at 1,195.73 Lakhs, compared to 1,196.69 Lakhs in FY 2024-25, despite a higher capital employed base, reflecting continued discipline in debt management. Depreciation and amortization expense was 966.41 Lakhs, compared to 951.77 Lakhs in FY 2024-25, broadly in line with the Companys asset base.
Operating Cost Breakdown - FY 2025-26
| Category | % |
| Materials Consumed | 37.5% |
| Other Expenses | 45.5% |
| Depreciation | 3.5% |
| Finance Costs | 4.3% |
| Employee Expenses | 9.3% |
EBITDA for FY 2025-26 stood at 2,392.44 Lakhs compared to 2,321.53 Lakhs in FY 2024-25, an improvement of approximately 3.1% despite the decline in revenue, reflecting the Companys focus on cost optimization, efficient input sourcing and operating discipline.
PBT for FY 2025-26 increased significantly to 301.16 Lakhs, compared to 173.07 Lakhs in FY 2024-25, notwithstanding the decline in revenue, aided by improved EBITDA performance and stable finance costs. PAT for the year stood at 210.58 Lakhs, a strong turnaround from the loss of (12.17) Lakhs reported in FY 2024-25, which had been impacted by an exceptional expense and unfavorable tax adjustments.
Profit After Tax (PAT) Trend (Lakhs)
| FY2023-24 | FY2024-25 | FY2025-26 (Actual) |
| \u20b9 224.63L | \u20b9 -12.17L | \u20b9 210.58L |
Finance costs for FY 2025-26 were 1,195.73 Lakhs, broadly stable compared to 1,196.69 Lakhs in FY 2024-25 and significantly lower than 1,421.55 Lakhs in FY 2023-24, despite a meaningfully larger capital employed base during the year. This reflects continued discipline in the Companys borrowing and treasury management practices.
Finance Costs Trend (Lakhs)
| FY2023-24 | FY2024-25 | FY2025-26 (Actual) |
| \u20b9 1421.55L | \u20b9 1196.69L | \u20b9 1195.73L |
Capital employed increased to 36,937.45 Lakhs for FY 2025-26, compared to 30,540.42 Lakhs in FY 2024-25, reflecting incremental investment in the Companys asset base and working capital. Net worth stood at 27,838.46 Lakhs, broadly stable compared to 27,677.26 Lakhs in FY 2024-25, supported by the return to profitability during the year. Total debt/borrowings stood at 9,098.99 Lakhs as at the end of FY 2025-26
Key Financial Ratios
| Metric | FY 2025-26 | FY 2024-25 |
| Capital Employed ( \u20b9 Lakhs) | 36,937.45 | 30,540.42 |
| Net Worth ( \u20b9 Lakhs) | 27,838.46 | 27,677.26 |
| Total Debt / Borrowings ( \u20b9 Lakhs) | 9,098.99 | - |
| ROCE (%) | 4.05% | 4.65% |
| RONW (%) | 0.76% | -0.04% |
ROCE is computed as EBIT (PBT plus finance costs) divided by capital employed; RONW is computed as PAT divided by net worth.
ROCE & RONW Trend (%)
| FY2023-24 | FY2024-25 | FY2025-26 (Actual) | |
| ROCE (%) | 5.61% | 4.65% | 4.05% |
| RONW (%) | 0.82% | -0.04% | 0.76% |
ROCE for FY 2025-26 stood at 4.05% compared to 4.65% in FY 2024-25, the moderation reflecting the larger capital employed base relative to operating profit growth during the year. RONW improved meaningfully to 0.76% from -0.04% in FY 2024-25, driven by the Companys return to profitability following the exceptional items that had weighed on the prior years results.
Exxaro continued to offer a comprehensive and reliable range of vitrified tiles across residential, commercial and institutional segments during FY26. Both manufacturing units at Padra and Talod operated through the year, with the combined facility achieving an installed capacity of approximately 1.32 crore square metres and actual production of approximately 1.05 crore square metres, representing an overall capacity utilization of 80%.
Plant-wise Installed Capacity & Utilization - FY 2025-26
| Particulars (Sq. Mtr) | Padra | Talod | Total |
| Installed Capacity | 49,20,000 | 82,80,000 | 1,32,00,000 |
| Actual Production | 41,16,073.51 | 64,07,481.28 | 1,05,23,554.79 |
| Capacity Utilisation | 84% | 77% | 80% |
All figures in square metres.
Plant-wise Installed Capacity vs Actual Production (FY 2025-26)
| Plant | Installed Capacity (approx. crore sq mtr) | Utilization |
| Padra | 4.9 | 84% utilized |
| Talod | 8.3 | 77% utilized |
| Total | 13.2 | 80% utilized |
The Padra plant operated at a healthy utilization level of 84%, while the Talod plant operated at 77% utilization, reflecting strong overall asset productivity across the Companys manufacturing footprint. Stable access to natural gas, consistent raw material sourcing and well-organized logistics enabled uninterrupted production through the year. The Company continued to refine operating practices and optimize resource use, helping protect margins in an environment where industry-level pricing remained under pressure.
Exxaro maintained active engagement with its dealer network across all 27 states, spanning metro and non-metro markets in Tier-I, II and III cities. Export operations were conducted across 11 countries during the year - Bhutan, Bulgaria, Croatia, Ghana, Iraq, Libya, Morocco, South Africa, Sudan, Tunisia and Panama - with a continued focus on quality consistency, timely dispatch and compliance with the requirements of international buyers.
Key Competitive Advantages
Exxaros growth strategy is centred on improving capacity utilization, particularly at the Talod facility, while strengthening brand visibility and deepening market penetration across underpenetrated Tier-II and Tier-III markets. The Company continues to expand its channel partner network and build relationships with architects, contractors and institutional buyers to support volume recovery in a competitive pricing environment.
On the product front, the Company is investing in design-led innovation and value-added tile categories that can support better realization per square metre. In exports, Exxaro intends to deepen its presence across its current 11-country footprint while selectively evaluating new geographies, building on the structural opportunity arising from the tariff disadvantage faced by Chinese exporters in markets such as the United States.
Operational efficiency improvement remains an ongoing priority, with a focus on lifting utilization levels at both plants, optimizing raw material sourcing and managing energy costs, particularly given the sectors sensitivity to natural gas price movements.
| Risk | Description | Mitigation |
| Market / Demand Risk | Tile demand may slow due to weak real estate or pricing pressure | Wide dealer network, growing exports and value-added products help maintain steady volumes |
| Competition Risk | Many players may reduce margins and pricing power | Superior product designs, consistent quality and strong dealer relationships help retain customers |
| Credit Risk | Delay in customer payments may affect working capital | Regular monitoring of receivables and controlled credit terms reduce exposure |
| Liquidity Risk | Meeting short-term financial obligations smoothly | Proper cash planning, banking limits and timely credit facilities ensure liquidity |
| Interest Rate Risk | Increase in interest rates may raise borrowing costs | Borrowings and funding costs are monitored regularly to optimise interest expenses |
| Operational Risk | Disruption in production or logistics, or sub-optimal capacity utilisation | Integrated plants, automation, quality control and strong internal systems ensure smooth operations |
| Foreign Currency Risk | Exchange rate changes can impact export realisations | Exposure is small and monitored closely to minimise impact |
| Brand / Dealer Risk | Lower brand visibility may affect customer trust and market positioning | Consistent quality, timely supply and continuous dealer engagement protect brand trust |
Exxaro maintained a robust internal control framework during FY26 to safeguard Company assets, ensure accuracy of financial reporting and uphold compliance with applicable laws and regulations. The Company operates through clearly defined business processes, authority matrices and multi-level approval systems. Internal audits were carried out across all major functional areas, with findings reported to management and the Audit Committee on a quarterly basis.
Product quality remains at the heart of Exxaros brand promise. During FY26, the Company continued its focused investment in quality testing, production process improvements and technology upgrades. A dedicated quality team oversees each stage of the production cycle - from raw material procurement to finished goods packing - to maintain consistency and ensure adherence to technical standards.
The Company continued to invest in design enhancements, updated surface finishes and product refinements to meet evolving consumer preferences. Customer feedback, dealer insights and market intelligence informed product development priorities, enabling Exxaro to offer options with higher utility and stronger aesthetic appeal.
In accordance with applicable securities laws and regulations, certain statements in this Management Discussion & Analysis that refer to the Companys objectives, projections, estimates, expectations or predictions may constitute forward-looking statements. Actual results may differ materially from those expressed or implied, due to various known and unknown risks, uncertainties and other factors. The Company does not undertake any obligation to publicly update or revise any forward-looking statements contained herein.
For and on behalf of the Board of Directors Exxaro Tiles Limited
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2026, IIFL Capital Services Ltd. All Rights Reserved
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132 (Member ID - NSE: 10975 BSE: 179 MCX: 55995 NCDEX: 01249), DP SEBI Reg. No. IN-DP-185-2016, IA SEBI Regn. No: INA000000623, Merchant Banker SEBI Regn. No. INM000010940, RA SEBI Regn. No: INH000000248, BSE Enlistment Number (RA): 5016, AMFI-Registered Mutual Fund Distributor & SIF Distributor
ARN NO : 47791 (Date of initial registration – 17/02/2007; Current validity of ARN – 08/02/2027), PFRDA Reg. No. PoP 20092018, IRDAI Corporate Agent (Composite) : CA1099
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
