Ceramic-tile industry to see dip in revenue due to conflict
India's ceramic-tile industry is feeling the heat from the ongoing West Asia conflict, with Crisil Ratings predicting a 1-2% dip in revenue this fiscal (2025-26).
The main issue? Key raw materials like LNG and propane are harder to get, and they make up over one-third of production costs.
Exports and domestic production under threat
Exports usually bring in 40% of the industry's revenue, the Middle East accounts for 15% of ceramic exports (about 6% of industry revenue, since exports are 40% of revenue), but shipping troubles and pricier freight due to the Strait of Hormuz closure could cause export revenue to decline by 6-7%.
On top of that, many factories are running below capacity at home, so expected growth has been cut down from 7-8% to just 4-5%.
If things don't improve soon, profits could take an even bigger hit in the first quarter of the next fiscal (Apr-Jun 2026).