• The Indian ceramic tile industry1 is primarily driven by domestic demand, which accounts for ~75% of revenues. This demand is supported by sustained real estate activity and continued budgetary allocation under PradhanMantriAwasYojana(PMAY). Real estate launches2 have grown by a 7-year CAGR of 14% in FY2018 to FY2025, with an estimated growth of 4-7% in FY2026E, which is likely to keep the tile demand stable – driven by execution of the pipeline of past launches and those expected in near term.
• Export growth, which had previously supplemented smaller players, has weakened due to global trade disruptions. The imposition of anti-dumping duties by the EU, trade tariffs by the US, and elevated logistics costs due to the Red Sea crisis have constrained competitiveness. With growth in exports expected to remain muted in FY2026, excess supply is being redirected to the domestic market, intensifying pricing pressure and contributing to a decline in realisations.

Exhibit: Operating income for ICRA’s sample set had a CAGR of ~8%, with future growth likely reliant on volume expansion

Source: ICRA Research; ICRA’s sample consists of 8 companies including five listed companies – Kajaria Ceramics Ltd (KCL), Somany Ceramics Ltd (SCL), Simpolo Vitrified Private Limited (SVPL), Asian Granito India Ltd (AGL), Orient Bell Ltd (OBL), Exxaro Tiles Ltd (ETL), Sanskar Ceramics Private Limited (SCPL), Sentini Cermica Private Limited (SPL)