Lexus Granito (India) Limited is an Indian manufacturer, marketer, and exporter of vitrified ceramic tiles. Headquartered in the ceramic hub of **Morbi, Gujarat**, the company operates under the premium brand name **LEXUS**. Following its migration from the **NSE SME Emerge Platform** to the **NSE Main Board** on **March 13, 2023**, the company is currently navigating a strategic transition characterized by debt restructuring, capital infusion, and a shift toward low-cost product segments to stabilize its financial position. --- ### **Core Product Portfolio & Technological Capabilities** The company operates within a single business segment: **Ceramic Tiles and Allied Products**. It leverages **high-definition digital printing** technology to produce a diverse range of aesthetic and functional surfaces. * **Vitrified Tiles:** Includes **Polished Glazed Vitrified Tiles (PGVT)** and **Glazed Vitrified Tiles (GVT)**, which serve as the flagship premium offerings. * **Wall & Floor Solutions:** Digital Wall Tiles, Elegant Floor Tiles, and Decorative Elevation Tiles for architectural aesthetics. * **Niche Segments:** Production of Industrial Shoe/Uppers. * **R&D Integration:** The company maintains an in-house laboratory dedicated to **new color development**, rigorous product testing, and quality analysis to ensure compliance with international standards. --- ### **Manufacturing Infrastructure & Operational Footprint** Lexus Granito’s operations are centralized in a high-capacity integrated facility designed for scale and quality control. | Feature | Details | | :--- | :--- | | **Location** | **Morbi, Gujarat** (N.H. 8-A, Lakhdhirpur Road) | | **Total Area** | Over **4 Hectares** | | **Quality Certifications** | **ISO 9001:2008**; Certificate of Compliance by **UK Certification & Inspection Ltd** | | **Internal Controls** | Physical verification of assets on a **three-year cycle**; internal audit systems commensurate with company size. | | **Safety Standards** | Strict adherence to **Occupational Health, Safety, and Environment (OHSE)** standards. | --- ### **Financial Performance & Market Dynamics** The company has faced significant headwinds, with declining revenues and persistent losses. However, recent data suggests a narrowing of net losses as management pivots its strategy. **Three-Year Financial Summary:** | Particulars (INR Crore) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Revenue** | **75.25** | **117.97** | **109.98** | | **Loss After Tax (LAT)** | **(5.03)** | **(16.58)** | **(11.83)** | | **Domestic Revenue %** | **89.24%** | **83.16%** | - | | **Export Revenue %** | **10.76%** | **16.84%** | - | * **Revenue Shift:** Total turnover contracted in the most recent fiscal year, but the net loss narrowed from **Rs. 16.58 Cr** to **Rs. 5.03 Cr**. * **Geographic Reach:** While domestic sales dominate (**~89%**), the company maintains an export presence in **15 countries**, including **Italy, Israel, Saudi Arabia, Libya, and the UK**. * **Equity Erosion:** Accumulated cash losses significantly impacted the balance sheet, with shareholder equity dropping to **Rs. 9.32 crore** in FY 2023-24. --- ### **Capital Raising & Debt Restructuring Strategy** To address liquidity constraints and fund a transition toward growth, Lexus Granito has aggressively pursued equity-based fundraising and liability settlements. * **Authorized Capital Expansion:** Increased from **Rs. 22.00 Cr** to **Rs. 33.00 Cr** to facilitate new issuances. * **Preferential Allotments:** * **April 2025:** Issued **95,04,424 Convertible Warrants** at **Rs. 45.20** per unit to fund working capital and general corporate purposes. * **December 2025/Feb 2026:** Conversion of warrants into equity shares (e.g., **3,00,000 shares** at **Rs. 45.20**) to bolster the capital base. * **October 2023:** Converted **Rs. 5.40 Cr** of unsecured promoter loans into **10,00,000 equity shares** at **Rs. 54.00** per share. * **Debt Settlement:** Executed a **Rs. 15.00 Cr** settlement agreement with **Debenture holders**. As of May 2024, **Rs. 75 Lakhs** had been paid, with the company utilizing preferential issue proceeds to clear the remaining balance. --- ### **Strategic Growth Objectives** Management is shifting focus from survival to market capture through three primary pillars: 1. **Product Pivot:** A strategic shift toward **low-cost tiles** to capture volume in price-sensitive segments. 2. **Distribution Expansion:** Actively appointing new dealers across India to deepen domestic penetration. 3. **Inorganic Growth:** Planning acquisitions of businesses in the same line of activity to rapidly increase turnover and market share. 4. **Governance Strengthening:** The board was recently bolstered by the appointment of three new Independent Directors (**Mr. Chirag Hirani, Mr. Umangkumar Jagodana, and Mr. Jitendrabhai Lakhtariya**) in late 2025. --- ### **Critical Risk Factors & Regulatory Challenges** Investors should note significant legal and financial risks that have impacted the company’s reputation and liquidity. **1. Regulatory & Legal Proceedings:** * **GST Investigation:** In **July 2023**, the **CGST Rajkot** framed charges of **under-invoicing and clandestine supply**. This led to the arrest of the **Managing Director (Anil Babulal Detroja)** and **Whole Time Director (Hiteshkumar Babulal Detroja)**. They were released on bail after depositing **Rs. 2.00 Cr**. * **NFRA Penalties:** In **October 2023**, the **National Financial Reporting Authority** penalized the company’s auditors and debarred the Engagement Partner for **3 years** due to failures in auditing **Related Party Transactions (RPTs)** and **IPO proceed utilization** (2017-2020). **2. Financial & Compliance Risks:** * **Statutory Defaults:** The company has been irregular in depositing dues for **Provident Fund, ESI, Income Tax, and GST**. * **Contingent Liabilities:** As of March 31, 2025, the company faced **Rs. 1,519.53 Lakhs** in indirect tax contingencies and **Rs. 623.15 Lakhs** in direct tax contingencies. * **Liquidity Constraints:** The company reported **zero undrawn borrowing facilities** as of March 2025, indicating a high reliance on internal accruals and fresh equity issues. **3. Market & Operational Risks:** * **Resource Volatility:** Exposure to **Raw Material Price Increases** and shortages of critical resources. * **Financial Sensitivities:** Exposure to **Interest Rate Risk** (no derivatives used) and **Foreign Exchange Fluctuation** affecting the **21%** of sales derived from exports. * **Competition:** Intense pressure from the **unorganized sector** and established players in key marketing zones.