Carysil Limited (NSE: CARYSIL) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
Chirag Parekh — Chairman & Managing Director
Anand Sharma — Executive Director & Group CFO
Analysts:
Unidentified Participant
Aditi Loharuka — Analyst
Sanjay Ladha — Analyst
Bala Murali Krishna — Analyst
Resha Mehta — Analyst
Naman Parmar — Analyst
Pritesh Chheda — Analyst
Gurmeet Singh — Analyst
Saumil Shah — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Carousel Limited Q1FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing 0 on your Touchstone phone. Please note that this conference is being recorded. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and and involve risks and uncertainties that are difficult to predict.
I now hand the conference over to Mr. Chirag Parekh, Chairman and Managing Director of Castle Limited. Thank you and over to you sir.
Chirag Parekh — Chairman & Managing Director
Thank you. Good evening ladies and gentlemen. Thank you for joining the Castle Limited Q1 FY26 earnings conference call. I trust you had an opportunity to review our financial results. Investor presentation both available on the company’s website on stock exchanges. Joining me on this call is Mr. Anand Sharma, Executive Director and Group CFO and SGA Investor Relations Advisors. Carousel delivered a resilient performance Quarter 1 FY26 Driven by strong demand, momentum and repeat orders from the customers. Our diverse customer base, strong channel, partnership, strategic capacity expansion positioned well to meet this growing demand while enhancing operational leverage and profitability.
Quartz Kitchen Sink Segment Our Quartz segment delivered a strong performance in Q1FY26 with volume rising by 22% YoY to 1.89 lakh units. Capacity utilization during the quarter reached 75% reflecting healthy throughput while retaining sufficient headroom to accommodate additional volumes as expansion progresses. In spite of global challenges, Carousel has emerged as a preferred global supplier thanks to our resilient adaptive business model of high quality products, competitive pricing and customer centric approach. During this period we successfully secured a lot of new contracts and strengthened relationship with current customers. Our relationship with ikea began in 2020 and over the past five years we have not just expanded our business but also earned their trust as a reliable global supply chain partner through our consistent focus, quality and reliability aligned with our strategy to strengthen global partnerships.
We participated in IKEA’s global RFQ non US business and successfully secured a significant order which would increase our wallet share to 75% of our market share. We have entered into a purchase agreement with investing approximately 20 crores in mold, machinery and infrastructure to cater IKEA’s global non US requirement of quartz kitchen sinks. We are in the process of ordering the mold, machinery and full volume expected to commence from as early as quarter three FY26 we are pleased to inform you that our supply to Karan or US retail has commenced with our products now displayed over 1800 stores at Lowe’s incorporation.
The orders from the retail giant have exceeded our initial expectation. Partnership with global giants from backbone is our success. We believe that strong collaborations ignite possibilities, create a positive momentum and push the boundaries innovative and excellence. Leveraging these partnerships, cadastral delivered a resilient performance Q1 FY26 the strong demand momentum is evident by repeat customer requests of higher volumes, A diverse customer base and supply targeted capacity expansions confront the customer to provide sustainable supply to meet their growing demand. We emphasize that the market share globally of quartzync is growing rapidly and hence we have the traction and the momentum of business globally.
From every corner of the world we have a strong demand of quartz kitchen sinks. The capacity level of quartz kitchen plants has increased already to 75% in Q1 FY26 and is expected to further improve quite rapidly in the coming quarters. The global economy remains highly volatile due to ongoing tariffs and trade disruptions. The most significant event today is repositioning of global trade and supply chain led by recent US Tariffs. In light of the above the light of the evolving geopolitical environment, we are proactively engaging with our customers to provide the necessary support and strengthen the business relationship.
Further, we are closely monitoring emerging developments and take all the necessary steps to de risk our business and recent tariff hike to keep our business and customers intact. In the present 25% tariff situation, we are still better priced than most of our competition which are from Germany and Canada which they have already 15% tariff and higher inflation cost at their respective countries. As stated earlier, we have a great cost advantage over the European competition which can absorb this 10% tariff differentiation. Canada is also slapped with 35% tariff which is much higher than India since the steel sinks import into United States attract 50% tariff.
Already the traction of quad sink has provided impetus growth in the US market despite of tariff rate increase of quartz sink. With current traction and demand and opportunities of the non US market, we are quite confident that the capacity utilization will reach to 90 95% in the coming quarter. Stainless Steel Kitchen Sink Segment we also have some very exciting news on the stainless steel segment. Also our Stainless steel segment is also progressing very well with Q1FY capacity utilization reached 95% as communicated in our last earnings call, we entered into the OEM business with global brands to manufacture stainless steel sinks for their Indian requirements and the relation can extend to the global requirement also.
This is the first time Carousel has now ventured into the OEM supplies in India. This is a strong endorsement of our quality standards, manufacturing capabilities and customer confidence. To meet the growing demand, we have already started expanding our capacity of the additional 70,000 units. With this expansion, the total capacity will increase to 2.5 lakh units. We expect the new capacity to be operational from Q4FY26. Furthermore, we have participated in a large about half a million Singh RFQ for a major retail giant of the world and if we are able to win this award, it can substantially increase the volume of stainless steel sink segment.
Due to our bottlenecks in the capacity, we have to immediately create a capacity of at least 250,000 sinks of stainless steel sinks. Hence we have channelized resources of 10 crore capital via right issue which is underway. The total capex could be around 30 crores for the new stainless steel sink expansion appliances and faucet segments. We are ready for the next growth phase now. Assembling and Manufacturing as mentioned, we successfully commenced in house assembly manufacturing of kitchen hoods and we focus on assembling and manufacturing hobs, microwave ovens, food waste disposal, dishwashers very soon to give volume enhanced value addition.
As we all know, there’s a BI certification is in place and the company is in plan to put up some very strong capex investment to get the plan up and running by end of quarter four FY26 which we will come with the news shortly. We have significantly also enhanced our assembling of kitchen faucets and manufacturing of stainless steel part of kitchen faucets to increase over 50,000 a year. We are Due to our penetration in large retail giants, there has now been traction also to source kitchen faucets from us due to which we are now working in.
Right now we are in advanced talks with a major European faucet player to have a technology transfer. We are continuously working to achieve self reliance and significantly improve lead times, elevate product quality and contribute healthier margins. We will continue our pursuit of innovation and global competitiveness by exploring the latest manufacturing faucet technologies to produce highest quality to cater global customers. Our overseas subsidiaries Start with uk Our subsidiary of UK in spite of muted economy has delivered consistent performance of Carousel products and Carousel Surface limited are performing well. We expect this positive trend to continue. Due to our hard work and undedicated effort by our UK team, we have been constantly quarter on quarter adding multiple customers in uk.
Our partnership with Howdens which is the largest kitchen manufacturer in uk have once again shown a very strong performance and will continue to do so. Our US subsidiary United Grant LLC has performed much better in current quarters compared to previous financial year despite muted local demand. Focusing on more value added jobs and new customers in the past year we undertook a comprehensive cost structure optimization, undertook changes in sourcing from local US suppliers and other European suppliers. The subsidiary reported EBITDA 1.2 cr Q1FY23 EBITDA rose sharply to 1.8 crore compared to 0.4 crore in Q1FY25. The path level has also losses have reduced from 2.2 to 0.8.
With sustained operating discipline and focus on better sourcing margin expansion, we are confident to having a turnaround this year. UAE Our UAE region has continued to perform well with approximately 80% of our business driven by appliances segment our category. We have demonstrated strong product fit and channel penetration. Encouraged by this performance, we have planned major expansion across GCC markets to capitalize on appliances growth and leverage established trade delay in the region. We are now planning to open the second showroom in Dubai for about 7,000 square feet. We are also opening a new showroom in muscat of about 5,000 square feet to enhance our presence in the Gulf region.
Domestic Business India’s youthful evolving customer base is shaping new trend aesthetics and functionality. The increasing demand of premium and high quality products seamlessly blend luxury practically presents a significant growth opportunity for carousel. Our domestic business continues to grow in spite of the challenging environment. We have taken various measures to improve our market penetration through opening of new galleries, onboarding new distributors, increase display point and enhancing marketing campaign of premium product line. We have recently appointed Mr. Pawan Kumar Palkar our Chief Sales Officer for our domestic business to accelerate the market expansion and deeper penetration. With around two decades of expanded experience in sales, E.
Com business development and P and L Management, Mr. Palkar will provide strategic direction to enhance brand visibility and sales growth. We also hired Deloitte team to formulate a robust plan to expand our domestic business to 500 crore in the midterm within five years by sending the market position in India as promised, I will be delivering the 500 crore India Plan in the quarter end of quarter 3 FY26 over the few months we have been actively developing our E. Com platform and we are targeting 50 crore revenue out of the 500 crore revenue from e.com business in the next five years.
To achieve this goal, we are strengthening our partnership with Ecom players and planning to focus our fast moving product partnering with QCOM players also for faster delivery. In conclusion, Carousel stands a threshold of a transformative growth powered in next generation technology. In order to design operational excellence and wavering commitment to the core values. We are going to double down our bet on India by strengthening and enhancing our domestic sales team to much greater heights as we see a growing demand of premium and luxury products in India. Now I would like Mr. Anand ask Mr. Anand Sharma to update you on the company’s financial performance.
Thank you. Over to you, Mr. Anand Sharman.
Anand Sharma — Executive Director & Group CFO
Thank you, sir. Good evening everyone. Let me take you through the company consolidated financial performance. Sales volume quad sync volume increased by 22% from 1.89 lakhs unit to 1.55. From 1.55 like unit to 1.89 lakh unit. Stainless steel sink volume increased by 9.5% to 42,500 unit from last year. 38,800 unit. Kitchen appliances, faucets and other volume increased by 55% to 22,000 unit from last year. 14,000 unit on Y& Y basis Consolidated total income stood at 227.3 crore in Q1FY26 as compared to 201.2 crore corresponding last year quarter one registering growth of 12.9%. EBITDA margin expanded by 112 basis point to 19.4% on Y and Y basis.
Due to stabilization of raw material and freight costs along with ongoing initiative to cost improve and increase capacity utilization. Profit after tax and monetary interest stood at 22.8 crore in Q1FY26 as compared to 15.9 crore in Q1FY25 registering growth of 43.4%. With this I open the floor for question and answer. Over to you, operator.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2 participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aditi Loharuka from CD Equisearch Private Limited. Please go ahead.
Aditi Loharuka
Hello. Hello?
Chirag Parekh
We’re not able to hear her.
operator
Hello. Okay.
Aditi Loharuka
Yeah.
operator
I’ll request you to join the Queue back. So we will take the first question from Sanjay from Bastion Research. Please go ahead.
Sanjay Ladha
Hi sir. Thank you for the opportunity. So my question would be during the. Quarter
operator
your voice is not audible.
Sanjay Ladha
Hello. Is my voice audible?
operator
Hello.
Sanjay Ladha
Hello.
operator
I’ll request you to join the queue back. The next question is from the line of Bala Murli Krishan Krishna from Oman Investment advisors. Please go ahead.
Bala Murali Krishna
Yeah. Good evening.
Chirag Parekh
Problem is with you because it cannot be that nobody can able to join.
operator
Just allow me a moment, I’ll check. Sir.
Chirag Parekh
What is happening?
operator
Hello Mr. Bala Krishna. Can you please speak something?
Bala Murali Krishna
Yeah.
operator
Yes sir.
Bala Murali Krishna
Yeah. Can you hear me?
Chirag Parekh
Yes, we can hear you.
Bala Murali Krishna
Yeah. Thanks. Yeah. Congratulations on the great staff members. My first question is regarding this order from current USA supply to this.
Chirag Parekh
Sir, I am not able to understand you. Sir. Hello. Sir. Sir, we not able to understand you. You can speak slowly please.
Bala Murali Krishna
Yeah. No, no. Is it okay?
Chirag Parekh
Yes. But you. You will have to. I have a trouble to understanding the accent. You love to go a bit slow please.
Bala Murali Krishna
Okay. Okay fine. So my first question is regarding this supply to current in us. So we won the big order and we are supposed to supply two hundred and forty thousand things in this year. So based on the current situation, the contract and everything is going on the right direction or any impact on this order. Explain that. Thank you.
Chirag Parekh
So I like I stated things are going absolutely well. On the contrary that things are going better than what we expected. I did also mention that the tariffs of Europe are also in place. And we still in a great on a great front seat. Our all products have been displayed at lows all stores. So we are doing fine. We have discounts in prices. No knee jerk reaction, no cancellation of the orders.
So things are going absolutely smooth at this point of time even after the 25% tariff in place. Thank you.
Bala Murali Krishna
My second question is regarding this. After having all this Capex realizing all this capex which you are putting on the quad and stainless steam and faucets also. So what could be the revenue potential in the Fi20s or FY28 from overall the company.
Chirag Parekh
Yeah. So. So we will come back to you on. On this. But. But with the. But with the capex like we said we are expanding the capacity to another 250,000 sinks. And so 250,000 things capacity can fetch revenue about 60 crores extra.
Bala Murali Krishna
Okay.
Chirag Parekh
Hello.
operator
Hello.
Bala Murali Krishna
Yes. Thank you.
Chirag Parekh
Thank you.
operator
Thank you. The next question is from the line of Sanjay from Bastion Research. Please go ahead.
Sanjay Ladha
Hi sir. Thank you for the opportunity. Is my voice audible?
Chirag Parekh
Yes, now it’s audible. Thank You.
Sanjay Ladha
Yeah. Thank you. So sir, my question would be during the quarter our gross profit margin has been declined by 70 basis points point on YY. And this is due to cost has been increased higher than the revenue. Can you please explain what led to high cost? As in the last call you have mentioned that the cost pressure is easing off and we will see margin improvement. While you mentioned that the EBITDA margin has been improved it is due to other operating expense and not due to raw material cost. So can you please explain me the raw material cost increasing our looch.
Anand Sharma
This raw material prices are now stabilizing. Okay. And this costing comes on a weighted average basis. So impact will come further. Second there is a product mix and geography mix. So when we have a high weight our thing going to defend the territory, the cost will be higher. So it all depend on what type of contract and which country we are serving. Based on that product mix the costing for gross margin may change.
Chirag Parekh
It’ll be very quarter on quarter.
Anand Sharma
It can vary on quarter quarter but on the absolute side the cost is decreasing and it’s stabilizing at the point.
Sanjay Ladha
Thank you so for the answer. So my question on the second front is we are seeing strong growth in volume while prices in steel sink and kitchen appliances are falling. And also you know the coordination prices has been flat wire w any specific reason on what should we expect or what should we expect going forward on the prices terms.
Anand Sharma
So I don’t know from where you got the data our appliances average prices has increased rather than the falling.
So I have a data which suggests that average appliances pricing was 11,891 which increased to 12,912. Maybe because you have the data which come which combine appliances faucet and everything else. That’s why the average value you are getting lower. But that’s not the case.
Sanjay Ladha
Okay. Since last year, last quarter we have mentioned that the EBITDA margin should range to closer to 20%. Is the guidance is index on the margin side.
Chirag Parekh
Yeah. So we have. We’ve been continuing that what are EBITDA margin? 19.4. So we still we stick to our margin guidance. Sure.
Sanjay Ladha
Thank you. I will get back in time.
Chirag Parekh
Thank you. Thank you.
operator
Thank you. The next question is from the line of ratio Mehta from Green Edge wealth. Please go ahead.
Resha Mehta
Yeah, thank you. Congrats on a good set of numbers and especially on the margin comeback. The first one is on the US business. So just wanted to know that are there any quad sink manufacturing facilities in the US itself And I’m not asking Necessarily, you know the ones that have a European technology with them but just basic Cod sing manufacturing facilities are there locally in the US So when you’re.
Chirag Parekh
Talking about the quartzync what we are making that there is no technology or manufacturing United States.
Resha Mehta
But the non European or the non. I mean very local technology, mundane technology may be there. Right.
Chirag Parekh
So I would. Yeah, but that’s, that’s probably, you know like kind of the. It’s a very, very crude technology to make something. So not high, not premium sinks. Yeah.
Resha Mehta
And none of these retailers would actually prefer to buy those. Right.
Chirag Parekh
Again I would say those are not typically a quartz composite sink sinks. They may contain quartz, but they are not as hardcore quartz sink. What we do of high quality and with the resin what we use. So those are not preferred. That’s a non preferred sink in, in the U.S. not just in the U.S. but across the world.
Resha Mehta
You know, so I was just trying to understand what is the risk. Let’s say you know, this 50%, you know, this 50 tariff that is there and nobody knows how this tariff is going to, you know, evolve. Right. But worst case, I mean do these retailers then move to you know, some local technology from their sourcing standpoint or you know, how does it work? Basically that was what I was trying to understand.
Chirag Parekh
Yeah, yeah, so I understand obviously. See first of all, I believe that 50% tariff has still not come. So there is a lot of speculation and there’s a lot of panic reaction in the market by this. We are at a 25%. I’m very sure that the both the countries are working very closely and they’ll find an amicable solution. It is, you know, it is all about part of negotiation, just trying to get the best deal out like we do it in business. I am absolutely positive this thing will be solved. We just have to just have to buy some time.
That’s point number one. Point number two. We also think oh, 25 tariff will come. What will happen? Nothing happened, 25 tariff comes. So what happens now? Anyway, the inflation in United States is going to kick in because the tariffs are not just from India across. So somewhere that buck will be passed on to the customer. Right. So I think like I said in my speed with 25% tariff passings are still more, much more competitive than Europe. That’s one. Now hypothetically, I’m saying assuming that the 50, 50% tariff comes also. Right. So we have already planned a strategy A and strategy B with my customers that what next we have to do because we all know that this cannot Go on for a long period of time.
Right. So somewhere, suppose 50% tariff comes somewhere, somewhere we will bear, somewhere the customers will bear and somewhere it will pass on to the end consumers. But about what I said was very critical. We will secure the US business. We will not let the US business go out of our hands. And to our competitors, our biggest competition is sitting in Canada which is having probably 35% plus tariff. So we will, we will find out a way out which we have already strategized it. But there is too early to say what we are doing when there is still not a 50% tariff.
So let the 50% tariff kick in and then we will come out with a strategy that what company is going to do next. Now it is not easy for someone with lows biggest, second largest retail giant of 1800 stores plus has already carousel Singh installed in their India stores. You cannot take it out, you see. So and the Lowe’s team is coming to see our factory on October. They’re very positive. I think overall that is very positive. Obviously on the capital market side and most of the side is a panic situation. Yoga. But it’s part of the, you know, it’s part of negotiation.
We will, we will come out stronger. We’ll come out stronger.
Resha Mehta
Right, right. And you know, on this cot sink capacity, so just a clarification here today we are at 75 utilization for our COD things. So. But the 75 is on the 10 lakh capacity or we were to ramp it up to 12, another 2 and a half lakh. So the 75 utilization is on the 12 and a half lakh cotton.
Chirag Parekh
Okay, good question. Again, I think our capacity with the IKEA coming in, we would be reaching our peak capacity by October. As early as October, our company will have to plan to expand to another 250,000 sinks very, very quickly. We’re just waiting for what is coming out in the next 30 days time from IKEA side. And we need to understand that we have got about more than 75% of the global IKEA business. That’s a massive business. It’s a completely de risking us from United States. Even the worst case scenario, something goes wrong United States, right.
In the next five years time. But we are not even planning. We have already de risk ourselves by having this massive agreement with Ikea. And all is non US business. Right. So keeping in mind right now US is going as what it is. We love to still expand into 250,000 sinks extra. Because what’s happening over the horizon, we have so much deals and Traction coming in that we will need this minimum 250,000 things additional capacity to attract the customers who come to us. If you are bottomed out of the capacity, nobody’s going to come to us.
So it’s a matter of time. In 30 days we’ll know what volume we are expecting some quite large volumes from Ikea coming in very, very strongly and I think in 30 days time we will come to know what we need, we need to how fast we need to add 250,000 things capacity and I think by the next 30 days to 40 days. We also know what’s happening between the tariff between India and US also.
Resha Mehta
Right. So basically the 75 utilization is on the 10 lakh capacity we have. Not yet.
Chirag Parekh
Yes, it’s on a 10 lakh, yeah.
Resha Mehta
Right. And you know the next one is on the UK business. So you know, with the FDA having been signed with uk how in, in what shape and form really, you know, can it benefit us? And also a related question that carousel products, can it start sourcing all of its, you know, stainless steel things requirement from India with you know, we expanding our team sync capacity and how would that benefit the pnn?
Chirag Parekh
Yeah, so right now so good. I think actually you know a lot about our company. So, so I think the strain of the UK FTA deal I think we are, we consider ourselves as an Indian UK company only we don’t consider ourselves as an Indian come UK company. So I don’t think there’s a big benefit on terms of the trade but obviously there’s a lot more confidence within, within the company, within the country. So that’s kind of, you know, kind of, you know, kind of gives a lot of comfort level to do more and more business.
That’s point number one. Number two is we already transferring almost 50% of the stainless steel business to us. And you remember we said it enough, we need to expand in 250,000 things more. So that technology of the stainless steel which we are not able to produce now for the uk, which we will take care in this new expansion, does.
Resha Mehta
That benefit our PNL?
Chirag Parekh
Yes. So my target to my UK team is that by end of, by 27, I think 100% of the business needs to be transferred. So I mean obviously our company, so we can say what we, what we say that’s going to happen but we need to come out with those quality things and for that we need to enhance our technology and the cost competitiveness so the more volumes will grow. Let’s say we cross half a million sinks stainless Steel, we will automatically will get a price edge.
Resha Mehta
Understood. And on the last one on the Carousel Surfaces. Right. So in FY25, which is the last financial year, the revenue was largely flattish for Carousel Surfaces. While, you know, Carousel products being in same UK UK base, it grew its revenues by 29%. So you know, why this divergence in the growth trends of both these subsidiaries despite being based in the uk?
Chirag Parekh
The thing is it caters to very different segment of the customer. So where we have like a degrady growth in the surface is because they supply more to the retail store chains. And we need to be careful that if we are not getting our money secured, we do not supply. So while the demand is there, we need to secure our collection or receivables so we do not take risk as far as the receivables are concerned. That’s the reason, nothing else.
Resha Mehta
But do we see surfaces also to kind of get onto the growth trajectory in this financial year?
Chirag Parekh
You see, my team is expanding very, very fast to the new customer. It is just matter of time. Surfaces is going to bounce back, but it takes time. By the time you go to the new customers, because of factory, you get orders, fabrication, the turnaround time is 60, 90 days. But it will happen, it is happening. The UK has bottomed out now. It cannot go worse than this. And I’m sure you will see some good news in quarter two. Thank you.
Resha Mehta
Thank you. And lastly, the domestic business has grown by 10% this quarter, which is a good sign to see. So what’s driving this revival and can we expect this continued growth momentum in the domestic business?
Chirag Parekh
We continue our focus as premium products. Any company who was a branded focus on premium product is definitely going to grow. And our emphasis, like I said, on expanding our customer network product portfolio is only going to drive. Carousel has now become a premium household name in the kitchen category. I do understand where you’re coming from, where we have seen a lot of other company results and I always say keep focus on premium products. You know, that’s where India is going to go in the future. And it’s not just sales improving, there’s a massive margin improvement, also a domestic business.
So we will, we are, we are going to continue this momentum in India in spite of there is a growing demand, but I think that’s for the lower end of product. Thank you.
Resha Mehta
Thank you so much for answering all my questions and all the best.
Chirag Parekh
Thank you.
operator
Thank you. A reminder to the participants, please press star and one to ask a question.
Chirag Parekh
And our operator, please keep two minutes for a call because otherwise everybody will not be able to get an opportunity to ask. Thanks.
operator
Sure, sure. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference please limit your questions to two per participant. Should you have a follow up question we would request you to rejoin the queue. The next question is from the line of Naman Parmar from Nivesha Investments. Please go ahead.
Naman Parmar
Yeah, congratulations on a great set of numbers. Firstly I wanted to understand on the. Domestic side how much is the dealers and distributor has been added in the quarter one and how much stores has been added.
Anand Sharma
See we will give the all this information an annual basis because every quarter is difficult for us to add because there are few dealer getting added, few dealer. We are not allowing them to operate at the low level. So it all gets churning and so.
Chirag Parekh
I’ll just add it to it. Our I think our endeavor to add to 5,500 dealers by FY26 resumes. We have already signed up 45 gallery. Remember I said we want to add about 100 galleries this year. We have already signed up 45, 45 galleries in quarter one only our trust is going to be more on opening galleries and experience centers in India which would enhance the brand equity. As far as 2 is concerned we are expanding our dealer network about 200 dealers a quarter. I think we are on track. I think we should be adding about more than 1,000 dealers by end of the year which will take us to 5,000 plus end of the year.
Naman Parmar
Okay, understood. And secondly on the right issue that. Is happening on the subsidiary company.
Naman Parmar
Yeah. So out of the 9 crore investment that will be going how much will be for the capex and how much will be for the working capital?
Naman Parmar
This is, this is the right issue but total capex
Naman Parmar
will be around 30 crores in total. That is include land, building and the machinery with which somebody has asked how much revenue. So at this capacity we can generate about approximately 60 crore revenue. So approximately could be 15. 15 crores could be land and building and 15 crores would be for molds and machinery.
Okay, understood. Yeah. Thank you so much.
operator
Thank you. The next question is from the, from the line of Pritesh from Lucky Investments. Please go ahead.
Pritesh Chheda
Yeah. Hi sir, just want to check you know based on you know whatever client volumes that you discuss, the capacity that you’re talking about, the various RFQs that you are referring to or discussions that you’re referring to across clients. You know if we sum total all this and let’s say you know the trade dynamics are realistic. World trade dynamics are realistic, let’s say. So this 2 point about 2.3 lakh volume that you did in quarter 126 which is 1 lakh 90,000 of quartz and about 40,000 of stainless steel sink. This volume separately and maybe combined this volume number 8/4 from now should be what number that we can look at.
Chirag Parekh
Like I said that there are some large contracts we have signed and IKEA is obviously one of the segments and I would. And like I said, we are very confident starting quarter three we will be picking our capacity around 90 95% on the quad side. So you’re looking at almost optimizing the capacity in quarter three. If we are, if, if that’s what it goes then like I said, 250,000 sinks of the capacity will have to add it. So I believe that by quarter three and I think we should be picking out on million and we will have to buy by, let’s say by March, April we’ll have to be ready with another two 250,000 sinkholes additional capacity.
That’s one. So you’re talking about a quartz capacity of 1.25 maybe by quarter one FY27. Okay, now comes to the stainless steel sinks. I think somehow this China plus strategy Europe plus is going down somewhere. The people are getting a lot of confidence in us and they want us that carousel should also now start investing in the stain district and start becoming a important source for both quads and the stainless steeling. So I think we are more and more things we make of new technology. We are very confident. So the RFQ has been done for a very large giant of half a million pieces.
Even if we get 50% of that 250,000 pieces in talking about 250 plus 250,000 which we have to be ready by quartered quarter two of FY27. So by mid of FY27 in all probability you will see a quartzing capacity of 1.25 and a stainless steel capacity of half a million sinks.
Pritesh Chheda
Okay, my second question is what is us, let’s say in FY25 or you know, quarter one as a percentage of our total business. So what is US contribution to the revenue?
Chirag Parekh
Yeah, so until F till quarter two it should be about 30 of our revenue. And okay, moving forward by end of the year I think should be 20%. Okay.
Pritesh Chheda
So okay, by virtue of the backup these supplies to non us, these all.
Chirag Parekh
These clients and contracts complete IKEA contract is a non non. It’s a, it’s A non us. And hence. And, and, and hence any and without, without doing anything will be de. Risking all already. You know, if something goes wrong in a worse case scenario.
Pritesh Chheda
In this, in this ramp up from say a million capacity to 1.25 million and let’s say in sink stainless steel from 0.25 to half a lot of it is non us. Right? Or entirely is non us.
Chirag Parekh
No, no, no. So let us say us. Us. I’ll say 1.25 million us. Could be us. Could be about 20%. Right.
Pritesh Chheda
Okay.
Chirag Parekh
And 20 maximum 20, 25%. And standard still is completely non us.
Pritesh Chheda
Which means even in, even in quartz a bulk of it is non us.
Chirag Parekh
Only because all the contracts of Howden’s ICANN is all completely non US Contracts. No, okay. All. All. All right. Now traction like I said in my speech, that overall the global momentum coming from across all the countries which are all non US.
Pritesh Chheda
And my last question. Is. We can understand what is a risk now. So, so what I can figure out is risk is basically you have to still get the go ahead on the 0.25 million in watts and you still waiting for the go ahead on the 0.25 million SS. That’s the, that’s the, that’s how I should view it. Or there is any other risk?
Chirag Parekh
I don’t think so. Good risk. The risk is only about if the additional 25 tariff comes and what the company should play its game now next one. So I think till the company is very confident by securing the business is most important thing for the company. And I just came back from the US two to two days back meeting the customer they are so much in support of. It’s not that every customer in United States can. You know, I’ve heard that some of my friends, they’ve stopped dispatches the next day only. You know what I’m saying? So somewhere the customers are ruthless.
But we have such amazing partnership with our clients. There’s so much trust in us. They’re willing to support all and same from us. We also willing to support that. So I believe we have, we have built a tremendous and a very, very strong bond with the customers. They are also hopeful and they hope that this, you know that this tariff war is over. And like I said that it is all matter of just time. It is just trying to get the best piece out of the deal. It’s all about that.
Pritesh Chheda
Perfect. Okay, thank you very much.
Chirag Parekh
If the US customers say oh please stop dispatches but that’s not happening to the demand only is so much right now. And I, and you answer your second question. What is happening in FY27? I believe in FY27 what carousel is doing is very few companies have done it. We have awarded the contracts of all non U.S. business coming up now. Right. That’s one. The two is the inflation is going to kick in in the US the demand is still going to slow down and I think that’s where the carousel new contracts coming in with all the new non US companies is.
That’s going to, that’s going to keep the company resilient and strong. Okay.
Pritesh Chheda
Okay.
Chirag Parekh
Yeah.
Pritesh Chheda
Thank you very much. Thank you. Thank you.
operator
Thank you. Ladies and gentlemen, please limit your questions to two per participant. Should you have a follow up question we would request you to rejoin the queue. The next question is from the line of Yash Naik from Kama Kyo Wealth Management Private Limited. Please go ahead.
Unidentified Participant
Hello. Thank you for the opportunity. So you recently onboarded a key client in a Dubai. So could you share a more detail. On the scale of this engagement including the initial order or expected in your revenue run date and
Chirag Parekh
sorry sir, sorry sir, you. You, you have to go slow.
Unidentified Participant
I’m. I’m. I’m a little bit hard for me to understand you. So you recently onboarded a client in Dubai. The Mr. Client in Dubai. So could you share the more detail. On the scale of this engagement including the initial order size or expected annual revenue run date?
Chirag Parekh
Yeah. So initially we have received a project order of the first Mr. And we all know that Mr. Belongs to the royal family and 80% of the construction in Dubai is based on that. So I think right now we have about if you took faucets and sinks about more than thousand pieces to start start with. So future, future. We don’t know, we don’t know what’s going to happen but it’s a big step and the only thing we know that it only can grow from here.
And, and we all know that Mr. Is just not doing in Dubai. Emaar is going across the Gulf. So anywhere Nemar goes we’ll have a lot of opportunities with that.
Unidentified Participant
And another question is regarding your 50% target. You mentioned earlier that it’s a revenue coming from India. So any timeline regarding this India.
Chirag Parekh
500 is in five years. Yeah.
operator
Thank you. The next question is from the line of Nikhil Rao from. I thought pms. Please go ahead.
Unidentified Participant
Yeah. Am I audible?
Chirag Parekh
Yes. Yeah.
Unidentified Participant
So thanks for the opportunity. I have a couple of questions on the Sternhagen line. So in previous calls management had mentioned plans to localize Turnhagen’s products and that there would be a 30, 40% reduction in product prices. Could you please shed some light on how these efforts have progressed so far?
Chirag Parekh
Sorry, I’m not able to understand. Can you, can you please come again loud and slow, please?
Unidentified Participant
Okay. Okay. So there was a mention of Megan’s products in the previous call and that there would be a 30, 40% reduction in the product prices.
So I just wanted to understand how those efforts have progressed.
Chirag Parekh
This whole SK collection, Suzanne Khan collection is all localized already. So you will see the margins have improved in the domestic market. Also we have launched project series in Stonehagen to cater to large projects which are all cost competitive. So we are using all this sources from India now to source these products. Overall there is a margin improvement on Sternhagen products and by coming quarters we are launching a lot of quarter three, Quarter three before Diwali. We are launching a lot of new innovative products in Sternagel which is going to eventually improve our margins.
Unidentified Participant
Okay. Okay. And I believe we had targets to grow revenue to around 2$2 million USD. So are we still on track for that or is there any update on that?
Chirag Parekh
No. So we are. We are. We are on track. We are on track. Yeah.
Unidentified Participant
Okay. Thank you.
operator
Thank you. The next question is from the line of Aditi Loharuka from CD Equisearch Private Limited. Please go ahead.
Aditi Loharuka
My question is from which other countries do US import quartz? Steel sinks. Quad sink.
Chirag Parekh
Sorry, sorry. What is it? Can you come again? What are the companies US Import countries countries.
Aditi Loharuka
From which other countries do US import quartz?
Chirag Parekh
So as far as we can only tell you what we. We know within. Within what the new we have. So all the that’s from Europe and from Canada mostly Germany, Italy and Canada.
Aditi Loharuka
Okay. And how well is the company prepared for higher tariffs from European nations?
Chirag Parekh
We are prepared with Europe.
Anand Sharma
Tariff the trade deal already going on with our India Europe.
Chirag Parekh
So I mean let we. I think it’s too early to say on the eu if you’re asking what is the India your Europe trade deal.
Aditi Loharuka
No, no, I’m asking like if NATO imposes tariffs on India then how well are we prepared to deal with it? Because a substantial portion of our revenue comes from European nations only. So.
Chirag Parekh
So if Europe put tariff on us.
Anand Sharma
Yes, that’s for cs.
Chirag Parekh
So Europe. I. I think it’s very too early to say really. I. I don’t want to speculate things right now. I don’t want to speculate. Let it come. We will see what we do at that time. All, all we know. To answer your question we are having a tremendous cost competitive advantage. So even if tariff comes 15, 20% whatever I think we will still be. Because you cannot ignore the fact Europe is facing tremendous high inflation cost of production right now. So it is very difficult for them to compete with us. We are the lowest cost producer sink manufacturer in the world right now as far as the shock technology sinks are concerned.
Aditi Loharuka
Okay sir, that answers my question. Thank you.
Chirag Parekh
Welcome.
operator
Thank you. The next question is from the line of Gurmeet Singh from GSK investment. Please go ahead.
Gurmeet Singh
Good afternoon. My question is on 2.5 lakh quad sink capacity expansion. What would be the capital expenditure and revenue potential of this 2.5 lakh quad sink?
Chirag Parekh
So if we add 250000 sinks the average price of a stink is about 5500. So that’s how much is 100 and 250 into. So that should be about 147. Yeah.
Gurmeet Singh
Okay. Thank you. That’s it for me. And what would be the capital expenditure like
Chirag Parekh
Capex should be around 30 to 40 crores.
Gurmeet Singh
Thank you. Thanks a lot.
operator
Thank you. The next question is from the line of Sawmill Shah from Paras Investments. Please go ahead.
Saumil Shah
Hi Chirag Bhai. Congrats on a great set of numbers in such a challenging period. So I think most of my questions were answered. So just a data gaping question. This year I think we were targeting revenues in excess of 925 crores and I think first quarter itself we did about 227 crores. So just wanted to know your outlook on the remaining quarters of this year. So how is our order book shaping up and do you feel that we can even cross this guidance of 925 crore and maybe hit a four figure mark this year?
Chirag Parekh
I think it’s very clear our capacity utilization is increasing on a quarter. On quarter we did a 225 number with. If we take even a capacity version of 5, 5% a month which is about 15% a quarter I think our revenue share will obviously cross 250 crore at quarter. So I think if you take that rate annual rate we will be going at a 1000 crore annual rate from quarter two.
Saumil Shah
Okay. Okay, great to hear that.
Chirag Parekh
So if that’s the rate then it already beats your 925, right?
Anand Sharma
Yeah. Right. Right. Right.
Saumil Shah
And to the previous participant I think you said that Germany, Italy and Canada we have competitors so just wanted to know I mean how much tariffs are they charged by us these three countries?
Aditi Loharuka
So your EU is 15% and Canada is 35%.
Saumil Shah
Okay, okay, okay. So we don’t see much of a challenge on our India 25% delivery as of now.
Chirag Parekh
So I don’t want to say what it is, my friend. Things are going on well. We have. We are in good terms. The customers, the order booking coming in strong. Good. Right. So I think. So far so good. So far so good.
Saumil Shah
Okay. Okay. That’s it. From my side. Thank you. And all the best.
Chirag Parekh
Thank you.
operator
Thank you, ladies and gentlemen. We will take that as the last question. I now hand the confidence over to the management for closing comments.
Chirag Parekh
Thank you everyone for great set of questions. Carousel has entered quarter two, FY26 with strong growth momentum and robust product demand. Clear roadmap to scale capacity and capture sustainable, profitable growth. With this, I thank you for all joining us today. We trust we have addressed your queries satisfactorily. Should you require any additional information or further clarifications about our performance or strategy, feel free to reach out to SGA team, our investor relations advisors. We appreciate your continued interest and support and we look forward to engaging with you again in the coming quarters. Thank you. Have a great evening.
operator
Thank you. Ladies and gentlemen, on behalf of Carousel Limited, that concludes this conference, thank you for joining us and you may now disconnect your lines.