Exxaro Tiles Limited Stock Analysis

Sequential revenue growth with Q3 FY2026 consolidated revenue at Rs 7,010.93 lakhs versus Rs 6,892.37 lakhs in Q2 FY2026, showing 1.7% QoQ improvement / Return to quarterly profitability with consolidated PAT of Rs 62.66 lakhs in Q3 FY2026 after navigating challenging nine-month period with cumulative losses / Stable power and fuel expenses at Rs 2,445.12 lakhs in Q3 despite inflationary environment, indicating effective cost management in key operational area / Employee benefit expenses controlled at Rs 641.02 lakhs (standalone) in Q3 versus Rs 689.63 lakhs in prior year quarter, reflecting 7% YoY reduction

Sharp 49% YoY decline in Q3 consolidated PAT from Rs 123.72 lakhs to Rs 62.66 lakhs despite revenue growth, indicating margin compression / Nine-month consolidated loss of Rs 362.76 lakhs reflects sustained profitability challenges compared to prior year's similar loss trajectory / Elevated finance costs at Rs 357.91 lakhs in Q3 FY2026 versus Rs 296.39 lakhs in Q3 FY2025, representing 21% YoY increase and burdening bottom line / Negative inventory adjustment of Rs 525.25 lakhs in Q2 FY2026 (though reversed to negative Rs 97.32 lakhs in Q3) signals working capital volatility and potential demand-production mismatches / Single-segment exposure to vitrified tiles manufacturing concentrates business risk without diversification buffer against sector downturns / New Labour Codes effective from November 21, 2025 create regulatory uncertainty with potential cost implications pending finalization of Central/State rules

9M consolidated PAT turned positive to Rs 263.39 lakh versus a loss of Rs 362.76 lakh in 9M FY25, indicating recovery from last year’s weak base. / Q3 consolidated revenue grew sequentially to Rs 7,010.93 lakh from Rs 6,896.37 lakh in Q2 FY26, showing near-term stabilization in topline. / Q3 earnings remained positive with PBT of Rs 89.00 lakh and PAT of Rs 62.66 lakh despite softer demand versus last year. / Cost control is visible in key lines: Q3 power and fuel expense declined to Rs 2,445.12 lakh from Rs 2,678.76 lakh YoY, and other expenses fell to Rs 509.03 lakh from Rs 839.31 lakh YoY. / Auditor limited review for both standalone and consolidated results reported no material misstatement under Regulation 33, supporting reported-number reliability.

Q3 consolidated revenue declined 11.7% YoY (Rs 7,010.93 lakh vs Rs 7,943.60 lakh), signaling demand/realization pressure. / Q3 consolidated PAT dropped about 49% YoY (Rs 62.66 lakh vs Rs 123.72 lakh) and about 48% QoQ (vs Rs 119.77 lakh), indicating profit volatility. / Profitability is very thin: Q3 PBT margin is roughly 1.3% (Rs 89.00 lakh on Rs 7,010.93 lakh revenue), leaving limited buffer against cost shocks. / Finance cost rose sharply to Rs 357.91 lakh in Q3 from Rs 256.57 lakh in Q2 and Rs 296.39 lakh YoY, pressuring net earnings quality. / Business concentration remains high as the company reports a single segment (vitrified/refractory ceramic tiles), increasing cyclicality and product-market risk. / Management flagged ongoing uncertainty from new Labour Codes (effective November 21, 2025), with accounting impact to be recognized after further rule clarifications.