Carysil Limited (NSE: CARYSIL) Q3 2026 Earnings Call dated Feb. 05, 2026
Corporate Participants:
Chirag Parekh — Chairman and Managing Director
Anand Sharma — Executive Director and Group Chief Financial officer
Analysts:
Unidentified Participant
Sagar Jethwani — Analyst
Pritesh Chheda — Analyst
Vaidik Bafna — Analyst
Resha Mehta — Analyst
Sanjay Ladha — Analyst
Chintan Shah — Analyst
Mehul Panjwani — Analyst
Naman Parmar — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Carousel Limited Q3 and 9 months FY26 earnings conference call hosted by Go India Advisors LLC. This conference call may contain some forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to to ask questions after the presentation concludes.
Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Chirag for his opening remarks. Thank you. And over to you sir.
Chirag Parekh — Chairman and Managing Director
Thank you. I think probably death can be on mute. So a lot of background. Thank you. Good evening ladies and gentlemen. Thank you for joining us for the Carousel Limited Quarter 3 and 9 monthly FY26 earnings conference call. I trust you have an opportunity to review our financial results and investor presentation both available on the company’s website and on stock exchanges. Joining me on this call is Mr. Anand Sharma, Executive Director and Group CFO and GIA Our Investor Relations advisors. Global and Indian Economy under the leadership of our honorable Prime Minister Sri Narendra Bai Modi, India has finally struck the Free Trade Agreement with uk, Australia, uae, Oman and mother of all trade deals for this year with eu.
The development expected to provide strong momentum to businesses and open new horizons in the export market. Finally, the good news happened two days back. We’re happy to announce the bilateral trade tariff between India and US agreed for the tariff at 18% from the pace of existing 50%. This is a significant development for the country and the potential to grow our export further and enhance our competitiveness in the US market. The positive developments along with our strong product portfolio and operational excellence energizes us as a company and reinforces the confidence and the resilience of CADIS global business.
The IMF’s latest reports indicate India is projected to contribute nearly 70% to the global real GDP growth second only to China. India GDP growth for 2025 is projected at 6.7% positioning it as the fastest growing major economy. Building on the foundations, we continue to focus on the key pillars that have guided carousel growth over the past three decades. Number one, well equipped manufacturing facilities have supported steady growth over the years. Long standing trust based relations with customers partners worldwide remain a key driver to our success, focusing on quality, design, reliability to meet global standards and deliver superior products.
Both a strategic vision anchored in resilience innovation enabling us to adapt to global challenges while creating sustainable value of our stakeholders. As global markets evolve amid shifting trade dynamics and supply chain changes, these trends help us to navigate complexity with clarity. They also give us the confidence to continue building the carousel brand across key markets and to explore opportunities even amid challenges, Business Performance and growth highlights the third quarter FY26 was quite decent, especially in the context of the prevailing global headwinds challenges, especially with the US with the conclusion of the Free Trade Agreement with major economies and more recently the positive news around the US Trade deal, we expect the overall business environment to improve.
To navigate the earlier tariff impact, the company had extended additional discount to our key US customers the reduction in tariffs which is the immediate effect and under the new trade agreement in we plan to roll back this incremental discounts with immediate effect. Further, with expected signing of the U Trade deal, we foresee significant growth opportunities in and around European markets Kitchen Sink Quads Granite Sink business sales volume of the quartz granite kitchen sinks have been strong and incremental investments in molds have been made to meet the demand in India and worldwide. During the Q3FY26 our sales increased by 27% as compared to Q3FY25.
We expect an additional capacity which we had announced earlier to become operational by the quarter first April 2026. This has been a bit delayed since we were waiting for the US News. Stainless steel business sales volume of the stain sinks have increased by 23% in Quarter 3 FY26 compared to Quarter 3 25. Capacity expansion is underway and there’s increased capacity in stainless steel sinks from 180,000 to 250,000 by April 2026. Considering the demand from our global customers and OEM opportunities in India, the company had acquired land adjacent to the factory and planned capital expenditure to enhance manufacturing in line and part of its diversified growth strategy built in appliances.
We are strengthening our manufacturing capacity in appliances. In phase one we commend assembly come manufacturing of the kitchen hoods, chimneys with an activated capacity of 50,000 units. In second phase we are starting assembling extended line of manufacturing to hobs, ovens, food waste disposers, et cetera, scaling the overall capacity to 100,000 units per annum expansion. This will position us to scale operations in line with the demand. We are receiving good interest and inquiries from the established OEM opportunities in appliances which is going to be significant due to the BIS certification putting west in state of the art technology for the built in appliances including glass cutting, forming and coating of the glasses on the faucets.
We are commence assembly manufacturing of kitchen faucets. The initial capacity of 50,000 faucets per annum and we are in the process of expanding 100,000 pieces per annum guided by vision to enable that we want that every kitchen faucet of carousels should be portable for drinking by integrating an advanced filtration technology with all our with most of our faucet offering we will bid manufacturing two types of faucets, Stainless steel faucets and the brass chrome faucets. The stainless steel faucets will be completely lead free and which matches the new standard for exports in the United States and eu.
We’ve been receiving several major inquiries from the large bathroom and kitchen brands across the world and the orders have also started flowing in for the faucets for export market. We see a significant volume in terms of faucet because everything needs a faucet. Use of the PVD technology further will enhance the aesthetic durability and validation of the existing. Due to the ongoing demand of the PVD faucets, we company decided to order another machine of the PVD for faucets. Necessary certification are in the process for the uk, European and the US market. We will optimize our sales channels while increasing our overall value addition Coming to export business Our export business with the key customers in United States, Europe and across the world.
I mean substantially during the quarter and is expected to further improve with the ongoing manufacturing capacity expansion and demand. UK market remained relatively soft due to ongoing economic challenges and the fundamentals of business still remain very strong. To strengthen our brand presence, we are launching Carousel branded sinks and built in appliances through Experience Centers which is coming up in Manchester. Exclusive carousel showroom New and emerging markets are becoming more important and meaningful to contributing to the growth especially the Middle East. Followed the response of the first experience center, we opened a second experience center in Muscat in January 26th.
The third one is coming in Sharjah, Dubai Main highway approximately 3-4,000 sq ft showroom and we plan to open another one in March 2026. We are spreading our sales network across Middle east and the Gulf, Qatar, Saudi Arabia, Bahrain etc. While other targeting some key European markets like Romania, Morocco, Egypt And Bulgaria. We are sending our presence in other markets Australia, New Zealand, Canada and South Africa. With the Carousel brand and edding bathroom products and the kitchen built in appliances. We had a very strong and a successful business model in UAE with our brand and company plans to replicate the same model across the world.
With the talents for brand Indian business. India continues to be an important growth pillar of the company. Like we said in the last investor call, our domestic business registered growth of 30% in quarter 3 as compared to quarter 3 FY25 OEM India business is progressing well with the leading players such as Kohler, Hayflare etc. Sourcing now stainless steel sinks from our company and has further plans to add a lot of new products. Capacity expansion in stainless steel, growing domestic and export demand, strengthening online presence and upcoming experience center will deepen consumer engagement and enhance visibility.
We are also strengthening our E. Com and our sales distribution significantly to further enhance our presence in the Indian market. Online business we see a massive potential of the online business and part of our endeavor to have a story of 500 crore of India in the next five years. It’s important when we start focusing on the online business which is the fastest growing business. We have strengthened our team. We recruited new people to expand our online presence. We also launching the Carousel bathroom brand to a D2C model, expanding experience centers across India and build a scalable growth platform.
Carousel plans to host its first International Carousel Summit Carousel 2.0 at the Grand Hyatt Mumbai on 4th April 2026. Where we going to showcase the vision of the new carousel 2.0 to our investors, stakeholders, channel partners and customers. Our vision is to build India’s largest integrated kitchen hub. With that I would like to hand over the call to Mr. Anand Sharma, our executive director and group CFO who will take you through the financial performance in more detail. Over to you Anand.
Anand Sharma — Executive Director and Group Chief Financial officer
Thank you sir. Good evening everyone. Let me take you through the company. Consolidated financial performance, Quarter 3 FY26 performance. Consolidated total income stood at 225.2 crore for Q3FY26 as compared to 207.4 crore of Q3FY25 growth of 8.6%. EBITDA for Quarter 3 FY26 stood at 43.7 crore as compared to 33.1 crore of Q3FY25 Growth of 31.9%. EBITDA margin for Quarter 3 FY26 stood at 19.4%. Profit after tax and monetary interest stood at 21.3 crore in Q3FY26 as against 12.5 crore of Q3FY25 growth Of 69.7%. Sales volume for quad sink stood at 199123 units. Stainless steel sink stood at 36,974 unit.
Kitchen appliances and other stood at 15,620 units in Q3FY26 coming to 9 month FY26 performance. Consolidated total Income stood at 698.7 crore for 9 month FY26 as compared to 618.9 crore in 9 month FY25 growth up 12.9%. EBITDA of the company for 9 month FY26 stood at 139.5 crore as compared to 109.9 crore in 9 month FY 25 growth of 26.9%. EBITDA margin For 9 month FY26 2.20percent as compared to 17.8% in last year. 9 months FY25 profit after tax and minority interest stood at 71.6 crore in 9 month FY26 as compared to 45.5 crore in 9 month FY25 growth of F20 57.3%.
Gross debt stood at 228 crore as on 31st December 2025. Cash and bank balance stood at 11.4 crore. Total capex for 9 month period FY26 stood at 44.6 crore which includes plant and machinery, buildings, molds and other equipments. Thank you. Now I open the floor for question and answer. Over to you operator.
Questions and Answers:
operator
Thank you very much. We’ll now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen will wait for a moment while the question queue assembles.
Chirag Parekh
There is so much of background noise I don’t know whose phone it is.
operator
We take the first question from the line of Sagar Jaitwani from Philip Capital PMS. Please go ahead.
Sagar Jethwani
Yeah, congratulations on a good Q3. So due to the favorable tariff rates now what will be our pricing strategy in US market? Will we be rolling back the discounts in a calibrated way? In which case when can the full rollback be effective from. So that’s my first question.
Chirag Parekh
All right. So yeah, like I said, the rollback is happening on a PRO database with immediate effect I mean 50% tariff is still about 18. Right. So according to post Pro data to that the rollback is already. We have already informed all our customers. It will be with immediate effect.
Sagar Jethwani
Yeah, good to know that. And you know I can see the sharp realization drop in the coursing. Of course for the obvious reason one just wanted to understand what was the discounting on the effective discounting on the products to combat the high tariff rate in Q3.
Chirag Parekh
Yeah, it’s. I mean I can just tell you range approximately. It was I think between 50 to 50 to 20%.
Sagar Jethwani
Okay. Okay. For the entire basket of products you’re. Saying.
Chirag Parekh
You ask business.
Sagar Jethwani
Okay. Third is that, you know a couple of stores in Mumbai we had seen a closure. I’m not sure it’s a closure. Are these stores getting reclaimed located? Can you comment on that please?
Chirag Parekh
Bombay it is. You know, this is all this coastal highway coming in now. I think. I think we have done our purpose. Everybody knows there was no footfall happening. Mall is now kind of run down. If you’re talking about Atria mall. So we have one in Andheri now. But we are opening new ones now towards the new new Bombay. And also in South Bombay we are looking at around the Mahalakshmi Mill side.
Sagar Jethwani
Okay. Yeah. And lastly this non US market IKEA sales. Can you comment how is it progressing?
Chirag Parekh
Like I said, I think overall across Europe we see a good increase. I would say some of the area there’s a sharp increase. IKEA per se is doing exceptionally well. We had some probably the highest sales last month ikea. So I think it’s doing pretty well. They like our sinks. We invested in new molds. We’ve been investing. As we announced last time. We have about close to 70, 80% of the IKR’s global business.
Sagar Jethwani
Would you be able to please quantify the volume number if so, for. For non US market ikea.
Chirag Parekh
Yeah. So because of the agreements with them, we cannot just openly announce what number we do with them. But I think you can contact our investor relations. They will provide you as much as information we can to you.
Sagar Jethwani
Sure. Thanks a lot. And all the best.
Chirag Parekh
Yeah. You’re welcome.
operator
Thank you. Our next question is from the line of Avijit she from SBI Cap Securities. Please go ahead.
Unidentified Participant
Yeah. Hi. Thanks for the opportunity. Sir, I just want to understand in the last quarter you mentioned that you want to enter into the hard services in the UK business. So any progress on that?
Chirag Parekh
Sorry, I’m not able to understand what he said last time.
Unidentified Participant
I said sir, your guidance on entering into the art surfaces for the UK business. So any progress on that part?
Chirag Parekh
The fabrication business? First prototype is coming up by April. When we are doing the expo, the 2.0 summit we would like we are going to display this new fabrication business in that expo. So it is going to come as fast as in quarter one.
Unidentified Participant
Understood? Understood sir. Any guidance on the borrowing part for FY27 and FY28?
Chirag Parekh
Yeah, I’ll just handle my CFO and then you want to, you want to come in?
Anand Sharma
Yeah. So on the borrowing side if you look at our debt, we actually reduce the debts from March of 253 crore to current 228 crore. So we don’t have any plan as such on the borrowing on the capex side maybe for the growth we will have some borrowing on the working capital overall we are going to keep the rate.
Chirag Parekh
We don’t want to borrow, we don’t want to borrow much. So I think we are having a budget meeting in March by the 3rd of March so we can provide you with some information after we do our board meeting on budget for the next financial year.
Unidentified Participant
Understood sir. On the kitchen appliances part, sir, how much is the mix in terms of domestic and international revenue? Mix?
Chirag Parekh
All right now we are doing all 100 Indian.
Unidentified Participant
100 international.
Chirag Parekh
Right now the whatever the appliances business we are assembling manufacturing or trading in India is 100%. It is India, UAE and the Gulf market is one peculiar case where we are now doing appliances. About 80 to 90% is appliances. Example we were targeting I think 10, we did 10cr 20cr. So targeting for these cr next next year for example where the 80% will be the built in appliances business of carousel.
Unidentified Participant
All right sir, that’s it for myself. Thanks. Thanks for answering my question.
Chirag Parekh
You mind muting so much background noise then you can come in when you.
operator
Thank you. Our next question is from the line of Pritesh from Lucky Investments. Please go ahead.
Pritesh Chheda
Yeah, hi. Just you know trying to correlate the presentation. So just wanted to check United Granite LLC so that all the business is basically the surfaces portion of the business in us or it is something or it’s something else because I’m just trying to correlate with the bar chart which is put ahead of that pie chart.
Chirag Parekh
No, it is 100% surfaces fabrication,
Pritesh Chheda
100% surfaces. Okay so
Chirag Parekh
I mean, I mean could be, I would not quote 100 could be 5% could be sink then faucet, some other things. So but it is majority so fabrication.
Pritesh Chheda
So then when it comes to Surfaces, it’s Garrison Surfaces and United Granite. Right. These are the two subsidiaries which will do the surface business.
Chirag Parekh
Yeah. So then that’s what the technology giving to India.
Pritesh Chheda
Okay. Can you, can you little bit, you know highlight the, the, the growth rates there in these two portions of the businesses, the surface as a whole. And. What are the, what are the near term demand trends basically?
Chirag Parekh
Yeah. So I think one big change in profits and I think we probably would have an investor or probably Anand can pretty as well let you know later. But one big thing change we are doing is we mantra is cut less, make more. So we are now cutting exotic stones, very, very high end stones. Our gross margin approximately have improved from 35% to 50% plus. I think that is one, that’s a one big shift what, what we are doing in the fabrication. Second we have started doing all complicated business of like fire of the fire surfaces and wash basins for the bathrooms.
And so we started taking orders more complicated to increase our gross margins. Yeah. So basically we’re targeting high end market in the, in the DMV area. As far as the UK is concerned. I think UK is kind of going through a slow pace. It’s soft actually. It’s market is quite soft and muted. But we are now targeting newer customers who are making specialized services into the bathroom, into the DIY stores, into yachts. So and we’re introducing new colors to expand our current range in the UK market.
Pritesh Chheda
Okay. So sum total this piece of surfaces should grow at water. So when I look at the nine month number also your quartz has grown 24, SS has grown 12%, appliances around 20. But it looks like that the surface piece is flat. You know, I’m combining both of them so if I have to look slightly ahead, you know, what should the surface.
Chirag Parekh
So I think, I’m unable to say but I think on likelihood end of this year the US services will grow by 15% in the current year. UK business will be still soft for the current year.
Pritesh Chheda
Okay.
Chirag Parekh
Yes.
Pritesh Chheda
And what I see in quarter three is your growth rate coming off because of the surfaces business. Otherwise you know, your growth rate would have been even better.
Chirag Parekh
Yes, that’s, that’s, that’s correct. And when do you post also it is by a seasonal, seasonal quarter for things also.
Pritesh Chheda
Okay, and what should be the growth. Rate in UK business in some cases. You know, once you, you know go through this part.
Chirag Parekh
Yeah, so right now it is very, very challenging, challenge, challenging environment. It’s, you know, it’s kind of very, very tough to say. I think we are Taking a quarter at a time. But I think the good, the I think the good part is we have a business under control and we have the margins under control and we have customer budgets very challenging UK surfaces. But the good part is like I said, we make good money and I think we got a situation under control but it’s challenging.
Pritesh Chheda
And my last question is based on the quartz capacity that you added will add by the quarter one and excess capacity that you’re adding in quarter one, your peak utilization of these expanded capacities you should attain in which quarter you should attain in quarter four of next year or it will go beyond that.
Chirag Parekh
See all likely, all likely would now with the US tariff sorting out with what the growth we have with ikas and all, I think we are looking at a very, very immediate utilize of the capacity.
Pritesh Chheda
Okay, so even quarter four FY27 is, is more better than even.
Chirag Parekh
I mean kind of should be. No. Now with the.
Pritesh Chheda
Okay.
Chirag Parekh
Which has gone off our head.
Pritesh Chheda
Correct. Thank you very much sir. All the best you guys. Thank you.
Chirag Parekh
Thank you.
operator
Thank you. Our next question is from the line of Vedic Bafna from Manarc Network Capital limited. Please go ahead.
Vaidik Bafna
So sir, congratulations sir on the good set of numbers. Sir. Firstly sir, I want to understand. More. About the gross margin expansion which has taken place. So does this include our currency tailwinds, you know, currency difference profits over here?
Chirag Parekh
Yeah. So Anand, we’ll answer.
Anand Sharma
Yeah. So Vedic, this margin expansion came mainly from the raw material price. Imported raw material price, MMA prices has gone down from 2.2, 2.02 dollar in April to 1.5 dollar in December. So there is a good, I mean value we got in the raw material pricing and therefore this margin expansion happened on the gross margin side. That’s the main reason.
Vaidik Bafna
So sir, do we expect this to continue for coming few quarters as well?
Anand Sharma
Now the world is so dynamic it’s very difficult to predict. But what we do normally we do three month forecast and we give the orders based on that. So I think we will continue with this range 1.5 to 1.6 for at least next 23 months. That’s the prediction. We have.
Vaidik Bafna
Got it sir. On the, it’s an appliance part sir. Which are the products which are growing. And which are the products which are not performing well for us. Is there any view over it?
Chirag Parekh
Well I think it’s very, very, I think pretty similar. The 70% of the sales are of kitchen hoods and the hobs and out of which 80% are the hoods. Since we are starting our Own family and manufacturing and 30% is ovens and wine chillers. I think it’s pretty stable. We have not seen any decline happening in any other category. But what we have seen a big increase is obviously in terms of the new Bio 6 ovens which we launched and our wine chillers that has shown a sharp increase.
Vaidik Bafna
Got it sir. Okay sir, that fits on.
Chirag Parekh
Okay, thank you.
operator
Thank you. Our next question is from the line of Resha Mehta from Green Edge Wealth. Please go ahead.
Resha Mehta
Thank you for the opportunity. So one is just a clarification. So you know, while volumes have grown very handsomely, revenue growth has only been 10%. So all of this is attributed only to the discounts that we’ve passed on to our customers in the US or is there also product mix impact, mix change impact?
Chirag Parekh
Most the. Mostly it’s due to discounts. Yeah, s
Resha Mehta
sorry, mostly it’s a.
Chirag Parekh
Mostly due to discounts to the U.S.
Resha Mehta
right. And, and you know the other part, like we’ve you know, announced some capacity expansions across products. But
Chirag Parekh
yeah.
Resha Mehta
So now you know, with all this, you know, the tariff headwind kind of behind us and you know, so many trade deals having been signed. Right. You know, what is our growth projection for the next financial year assuming status quo remains on the deals and the tariffs etc. So what is our growth projection? And with that, do you think that in the next four to five months we may again have to kind of add capacities, especially on the court Singh side.
Because if I recall correctly, two, three, around two quarters ago we were very buoyant and optimistic on you know, so many new customer deals that we were signing. And I think we were planning to add 2 lakh quads capacity which is now, you know, 1 lakh quads capacity addition instead. So do you think the capacities will fall short based on our revenue targets?
Chirag Parekh
So I mean, interesting question rich man. I think, let me just address you. This will probably benefit a lot of, not a lot of members in this. So you know, first of all, all these deals happening around the globe and carousel being more like internationally exposed. The good thing has happened is that we have always invested in customer relationships and this whole discounts being offered to sustain the US customers, showing your goodwill, showing the gesture, it is only going to pay back to you, I believe or maybe I’m wrong. But there are a lot of companies who have not passed on this.
Maybe sooner or later I think this, I don’t know if it works but for us I got these calls. I would also like to express that the Lowe’s senior team was here a few months back. We also got a joint supplier the best award to the lows. I think we have all time high sales right now at the lows. The Lowe’s is planning to double the SKUs at their stores in this 2026. All the customers have been calling across the world U.S. yes, obviously because it happened recently. Europe was very upbeat. So I think there’s a great mood with India right now and I think the way we have been seeing the inquiries floating in, I think whatever the deals we promise, I don’t think we were bond.
I think we are still very buoyant on it. Quarter three it is with a 50% tariff. I would like to tell that my team did a great, great job in order to counter this headwinds. It’s not easy when you are sitting at your office and factory and you’re hitting with a 50% tariff. Right. So I think it is. We are not slowing down. Only thing this can put you up now is on a fast growth track. Nothing can be backtracked. With all this momentum building in the United States with our current customers, new customers and the European customers, I think we only see that there is a definitive, I would not say small, but I would say that is a high.
There’s a high probability of capacity expansion in 2026 further to what we have announced.
Resha Mehta
Right. And then, you know, 15% revenue growth is doable or we don’t still have that visibility for FY27.
Chirag Parekh
I think, I think we got to do, I think, you know, people who, people who kind of know me and my company to be very candid about it, you know, I mean the company was not even doing 100 crore turnover, right. With 10 years back, you know, so I think it is good. I think our momentum has been very strong. Carousel, I think we are closing in by the closing to the quarter 4, I think very confident we’ll cross the $100 billion mark. We are, we have told you that Carousel 2.0, we’re looking at adding another hundred million dollars.
So you will see a great lot of excitement if you’re going to be there on 4th of March, 4th of April.
Resha Mehta
Sure, sure. Thank you for that. And you know the last question is on the UK business, while you did answer about, you know, carousel surfaces but on carousel products, right. Is there any firepower or you know, any internal initiatives, you know, that, you know, we can, you know, look at just to, you know, get onto the growth trajectory because we understand that the UK economy is not doing well. But still, are there any levers left for you know, within terms of internal initiative initiatives to guide growth?
Chirag Parekh
Right. See the diversification and product, product expansion is the fastest way by adding new customers. We have a, we have a great English team. We recruited some new senior and experienced people to put the appliances and the faucets on a fast growth track in the, in the uk we recruited business development managers to further expand if the companies, which people have left or some companies have got closed. We got experienced people from there to maximum our market share. Third, we have did I announced that Carousel is putting its first huge showroom. It is in Manchester, right on the.
Right on the design district. So I think kind of launching your brand, building momentum on your brand, increasing your market presence is the way to go. So there’s a lot of fire around my UK team right now to build a carousel there. I think you see it in the uae. I think they got very excited seeing the UAE project. How we turn out to be literally like, you know it’s going to be 0 to 30 crores in 3, 3 years time with Garrison brand, you know. So I think my, so my team is all fired, fired up.
I was in UK last, last week. Just try to assess the situation and what more opportunities we have.
Resha Mehta
So basically what you’re trying to say is Carousel products can probably, you know, arrest degrowth or you know, get onto the growth path because we have rejuvenated the team with new hiring and also with new customer addition largely. Right.
Chirag Parekh
We are not going to leave any stone unturned to fire up growth there. That’s all I can say.
Resha Mehta
Fair enough. Thank you so much and all the best.
operator
Thank you. Our next question is from the line of Sanjay Laddha from Bastion Research. Please go ahead.
Sanjay Ladha
Hi sir. Thank you for the opportunity and congratulations on a good set of numbers. So my question would be what will be the benefit from EU bilateral trade which you know, previously when we export to you, how much percentage of increase in our product price and now what will be the benefit from this since the trade deal has been done on that side?
Chirag Parekh
See as far as your, as far as our current business is concerned, to be very honest, it’s not going to be like a, just not like the U.S. right. But what has happened, like I said, this customer, this whole feeling good factor now with India and Europe, we see more inquiries would be coming into us. So that’s one. And also number two, you’re able to see a lot of synergies and collaborations now happening with Europe. So I see a big Upside from that point of view. It could be from the point of brand, it could be from technology distribution across.
Since we are actively presence in the, in the European market. People are with this idea that they feel very good about this India relationship. And I think both the. I think both from our side and my European customers have been seeing that they want to invest in us more and more. So I think that’s going to turn out quite positive for us.
Sanjay Ladha
Secondly, sir, since you already mentioned that you know in the Q3 there is a discount factor attached to that. I’m assuming because of 18% tariff in the US market in Q4 the discount will be gone up largely and therefore we will see you know, momentum building up going forward. Is that the right understanding?
Chirag Parekh
We gotta roll back the prices based on the Pro data 50 to 80, 100% we announced with our customers and we are going to do that.
Sanjay Ladha
Since you know, you, you the partner said that you know you are building up from. So we are largely right now US UK and the India focus. And you said that you are developing new market as well. Any color on that side which market we are you know focusing more which market we see more attraction on that side. Any, any color on that side.
Chirag Parekh
Sure. I mean I did say that we’ve been focusing on. On lot of new markets. We’ve been focusing either on the Gulf which is very, very huge. We are doing across North Mena, Middle East, North Africa. We are expanding into the European belt. I gave four, five countries from Morocco, Croatia and all that part. We are also strengthening our presence in Europe now with Spain. In Italy for example, we just got a new OEM customer which is the probably the number one luxury brand in the appliances is called Smeg. You would have heard about the brand Iron appliances.
We got our first orders from there. So we have a lot of action now from Europe inside the European countries which is again of 58 nations we are hardly at 20% in that. So we see. We have seen overall IKEA business across Europe happening right. With their presence more countries than it Sweden. We are developing our brand in South Africa, Australia. So I we the emerging markets. Right is going to show. I’m pretty sure if you just minus America because that’s a huge pie and so if you want to compare. But I think the significant growth will come from the emerging markets in 2026.
Sanjay Ladha
Right. And sir, my last question would be in the past we have alluded that Indian market and in the commentary also you said that you are looking Indian market at the 500cr mark. In a five year time frame. But any so you in the past you have said that you will share some strategy. How will you going to achieve that and what are your even on that side, any color on that side or will you see that in Q4, you know in the time of need or something sort of like.
Chirag Parekh
No. We are going to do this budgeting in our next budget meeting and we would be rolling out this plan on 4th of April in Bombambe 100 and it is and it is just not talking. I won’t like seeing is believing. So we want to display all the products what we planning to roll out in India within the next five years time. How are we going to build? What’s our strategy going to be? Everything.
Sanjay Ladha
Looking forward sir. Thank you so much.
Chirag Parekh
So please please sat in your seat belt for some time and I think the 4th of April you should get in touch with our with our team and they will let you know the slot investors can meet me and my team there will be my global team also my key core team of India also which will be there presenting you with the not with the global and the India plan. So we will walk through the five years of India.
Sanjay Ladha
Thank you so much. Thank you.
Chirag Parekh
Thank you. Yeah.
operator
Thank you. Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants in the conference please limit your questions to two per participant. Our next question is from the line of Natic from Envy Alpha Fund. Please go ahead.
Unidentified Participant
Hi sir, thanks for taking a question. So my first question is, you know I just wanted to know what sort of realizations both in our quads and steel sinks are sustainable on an annual basis.
Chirag Parekh
What sales price
Unidentified Participant
realization? Yeah, realization per unit in in both quads and steel sinks. What, what levels are sustainable?
Chirag Parekh
Yeah. So right now as you see our past track we our average serialization piece is going about I think anywhere on a 5 to 10% right year on year of average sales price I think we see what is sustainable. Is not that a very very finance question. But I’ll tell you answer what. The company is constantly focusing on high value added products. So I do remember when I joined carousel back in 9 90s, late 90s, the average price of a sink was 2,400 rupees. I think now it’s about 6,000 rupees, right. Just give you an idea.
When we launched faucets I think it was about 3,4000 rupees of faucet. Now it’s about maybe 8,9000 of faucet. So I think we have Constant endeavor to maximize our offerings are more value added products. So I think with that thing in mind and obviously we are a very margin conscious company, we believe in high margin model. So I think looking at that I would not be able to tell you exactly. But yes it is sustainable with the strategy what company has on developing and with high technology products, high design products and valuation here on it.
Unless there is some kind of a tariff and we are to discount the price a big then that’s a different story.
Unidentified Participant
Got it. So 6000k ot can increase depending on how much value added all product exchanges.
Chirag Parekh
I think it’s about five and a half to six.
Unidentified Participant
Yeah. So the second question is, you know given that majority of our debut has come from surfaces, you know this question quarter and the U. S subsidy seems to have degrown the most. So I just wanted to understand what is leading to this. Just a change in product mix that we are doing. One and two, is that substitute profitable or we are not making profits there.
Chirag Parekh
Okay, so I, I don’t. So maybe I kind of lost you in there because you’re speaking so fast.
Unidentified Participant
So I was talking.
Chirag Parekh
US will show growth. US profits are considered considerably rose now and for the year UK Like I said it’s going to be a challenging situation in UK but we still our profits are quite good. Not in terms of actual like last year but yeah, it’s quite good. Our subsidiaries in UAE I think exceptionally well. We were targeting I think about 10 crores. I think we’ll be ending this year more than 20 crores. So I think rest of the subsidies are good.
I think we just have to kind of sail through this. A bit of rough time in UK
Unidentified Participant
all right. And so the US subsidiary currently is profiting.
operator
Can you please.
Unidentified Participant
It’s just a follow up on the same. Yeah, yeah, just a follow up on the same. I’m returning after this.
operator
Thank you. Our next question is from the line of Chintan Shah from JM financial family office. Please go ahead.
Chintan Shah
Hi, thank you so much for the opportunity. So two questions. So one is again on this surfaces segment. So if I see our ppt it is one of the largest segments among all the product lines we have and also growing at the fastest pace. So I think just to get a better sense from the next at least four or five year perspective, what are we really doing to sort of, you know, gain more market share here because potentially this could be a very, very large segment for us. Just wanted to know your thoughts on this.
Chirag Parekh
No, no. So I think you know you’re Absolutely right. We call it the KBS strategy. Kitchen, bathroom and sofa strategy. The idea is to bring this surfaces because we see a very, very high potential. So fabrication is. We wanted to expand our fabrication business globally, especially right now just us and uk but India we are bringing in. The idea is to build your fabrication competency of such a level and purchase those quads and a granite business which can be integrated seamlessly with your kitchen sink to add value to it. Right. And then we want to kind of make that a branded product that carousel technology fabrication.
You know, we have seamless integration of a kitchen sink which again we will show to you on the April 4th Eddie Expo. I don’t think so. We are. We are going to give up. I think we completely believe that every sink like needs a faucet. It also needs a worktop. So we. You are absolutely right. I think that scale could be done. I think could be really different. As you know that we acquired these companies and we are learning this process how to grow just as the quad sinks. We launched decades back and took time the same way.
I think the surfaces may not take so much time, but we are kind of now getting the grip on it. Once you get the grip on it, I think we are. We will be ready to scale across the world.
Chintan Shah
Understood. So now just trying to understand the guidance better that you’re giving of around 15 to 20% sort of revenue growth rate over next three years. So if I see. I mean Surface is one segment which will grow fast and India is where we’re looking to almost take over 5x revenues. And plus we are expanding a lot in other geographies as well. So keeping all this in perspective, I mean this revenue guidance sort of confirmed it. I mean, what are your thoughts on any particular reason why you sort of expect it to be 1520 only
Chirag Parekh
growth. Growth and speed is if anybody knows our company and we know that we don’t leave any stone unturned. Right. So I think that is what the least I think anybody would expect from us to go out of 15, 20%. I think companies will not leave any stone unturned to achieve this. As we said that global markets are volatile. You know, what are the geopolitical situations? So you know, it’s very, very tough. But if you know us and my company, I think we’ll leave no stone unturned to grow this country company to Carousel 2.0 which we want to.
We will launch it in fourth April and try to see how do we now how fast can we bring another $100 million, sales.
Chintan Shah
All right. Under S Just last bookkeeping question for Mr. Anand. So on the quantum size as well as stainless steel side, basically for the three customers, they should be carried as well as Ikea. So just wanted to get a sense from a current capacity what sort of volumes are contracted with this guys? I mean just on a total basis, I think one is separate for each of them.
Anand Sharma
So I think customer wise not able to give you the numbers because we have a confidence agreement with the customers. You can ask.
Chirag Parekh
Overall. Overall margin. Yeah, you just want an idea.
Anand Sharma
Share of business. Hello.
Chintan Shah
Yes, that’s right. I mean in terms of volume, if India share from all three customers.
Anand Sharma
So all three putting together could be around 40% of business.
Chintan Shah
For both quads and stainless as well.
Anand Sharma
Quads, I’m talking about.
Chirag Parekh
I, I know, I, I, I know. So I can tell you this roughly, if you ask the US IK and all put together would be about more than 60% of the business.
Chintan Shah
Okay, okay, fine. All understand, I’ll give. Thank you.
operator
Thank you. Participants, please limit your question to one per participant. Our next question is from the line of mehul Panjwani from 40 cents. Please go ahead.
Mehul Panjwani
Thank you so much. I have some questions on the branding. So first is the Penhagen brand and Smeg Italy and also whether we, are. We selling our personal products that are being sold in Ikea India as well. So these three questions, can you tell. Us elaborate a bit on Steinhagen?
Chirag Parekh
Yeah, the Stonehagen brand is now being launched in the uae, will be launched in the UK and it’s launched in Germany. Smeg is we are not doing with smeg. We are OEM suppliers to smack. Right. And your third was what, what is that? Sorry, I missed it.
Mehul Panjwani
Are we, are we selling in Ikea India?
Chirag Parekh
Yes, we are selling.
Mehul Panjwani
And Stem Academy is our own brand, is it?
Chirag Parekh
Yes.
Mehul Panjwani
Okay. Okay, thank you so much.
operator
Thank you. Our next question is from the line of Naman Parmar from Nivesha Investment. Comments? Please go ahead.
Naman Parmar
Thank you so much for the opportunity. So just wanted to know, any import duty is there on the kitchen sinks. And bathroom fittings in the UK or the European markets?
Chirag Parekh
No, it’s only about two one and a half to 2%. It’s
Naman Parmar
okay,
Chirag Parekh
it’s very long.
Naman Parmar
Okay. And secondly, on the surfaces business in the U. S market, so what is the margin. On that particular business? If you can elaborate
Chirag Parekh
so I can just tell you, on the gross margins, their exhaust margins we have expanded from 35 to more approximately 50%.
Naman Parmar
Okay. Okay. So overall you’re seeing a very good demand scenario on the US perspective compared. To the UK market. Right?
Chirag Parekh
Yeah. I mean, for the time being, I would not say long term, let’s see. But I mean, obviously United States is a much bigger market. Yeah.
Naman Parmar
Okay. Understood. Okay, thank you.
operator
Thank you. Ladies and gentlemen, due to time constraints, we take that as the last question for today. I would now like to hand the conference over to Mr. Chirag for closing comments.
Chirag Parekh
Lot of background noise and sorry, I don’t know whose phone. Thank you, everyone. I hope you’ve been able to answer all your questions satisfactorily. However, if you need further clarification or want to know more about our company, please get in touch with GI Team I Invest, Relational Advisors. Thank you and have a great day. Jai Hind.
operator
Thank you on behalf of Carousel limited That concludes this conference. Thank you for joining us. And you may now disconnect your lines.