­Experienced management
The management of the company has more than three decades of experience in the ceramic industry. The managing director of the company, Mr. Sunil Malesha, has worked for over a decade with R.A.K. Ceramics India. The senior management team is ably supported by a strong line of mid-level managers. The company has developed long-standing relationships with its reputed customers, which includes Marriott, Hyatt, Star Group of Hotels, Radisson Hotels, Taj Hotels, Oberoi Hotels, and Holiday Inn, to name a few. Acuité believes will sustain its existing business profile on the back of experienced management and a reputed clientele.

Improving operating performance
UCIPL has demonstrated improved operating performance with revenue rising to Rs.179.42 Cr in FY2025 from Rs.149.19 Cr in FY2024, supported by higher sales volumes and realizations, with H1FY26 at Rs.82.80 Cr. Profitability strengthened as operating margins expanded to 32.1% and PAT margin to 20.54%, aided by lower raw material and power costs, including solar savings, and high-margin customized HoReCa orders from marquee global clients. Moreover, the new trading segments in stoneware, cutlery, and glassware is expected to further support the topline from FY26 onwards and margins are expected to remain healthy in the near to medium term.

Healthy financial risk profile
UCIPL’s financial risk profile remains healthy, supported by healthy net worth, coverage indicators, and low gearing. The tangible net worth stood at Rs.127.07 Cr as on March 31, 2025, compared to Rs.90.22 Cr as on March 31, 2024, reflecting steady accretion of profits to reserves. The net worth also includes Rs.9.86 Cr of redeemable cumulative preference shares, which are treated as quasi-equity. The company’s gearing remained low at 0.34 times in FY2025 (0.44 times in FY2024), indicating limited reliance on external borrowings. The debt coverage metrics have also improved on account of higher operating profitability in FY2025 with interest coverage ratio and debt service coverage ratio at 15.23 times and 8.12 times, respectively  (11.87 times and 3.06 times in FY2024).

Going forward, UCIPL’s financial risk profile is expected to remain healthy, supported by its strong capital structure, healthy debt protection metrics, and prudent financial management.

­Intensive working capital management
UCIPL’s working capital operations remain intensive, with gross current asset (GCA) days at 219 in FY2025 versus 188 in FY2024, driven by elevated inventory levels and moderate receivables. Inventory days stood at 162, reflecting the need to maintain multiple SKUs, while debtor days increased to 57, though about 78% of receivables are realized within 90 days. The company extends credit of 7–60 days, with partial advances from select customers, and generally avails 30–90 days credit from suppliers. Despite these pressures, UCIPL manages its requirements prudently, with average fund-based limit utilization at only ~17% over the six months ending November 2025, leaving significant limits unutilized, ensuring strong liquidity to support growth and new trading activities.

Acuite believes that the ability of the company to improve its scale of operations without any significant elongations in the working capital cycle will be a key monitorable.

Exposure to raw material, fuel cost and foreign exchange fluctuations
The ceramic and tableware industry remains vulnerable to fluctuations in raw material and energy costs, which can impact profitability despite strong demand. Further, UCIPL imports nearly ~42% of its procurement and exports ~40% of its supplies, thereby keeping the operations susceptible to foreign exchange fluctuations despite partial hedging.