HMG Stones to Invest 40 Crore in FY27, Eyes 120-150 Crore Revenue

New Delhi, May 7: HMG Stones is planning to invest about 40 crore in FY27, including 30 crore in machinery and 10 crore in a new experience centre near Bengaluru airport, as it looks to expand its natural stone business. The company expects revenue to grow to 120-150 crore in FY27 from over 100 crore in FY26.

Investment and Revenue Targets

Of the total planned investment, about 30 crore will be towards machinery, while 10 crore will be used to develop its fourth experience centre near Bengaluru airport. The company has already invested close to 100 crore in its NextGen 333 product line, including material and infrastructure. The company expects to close FY26 with revenue of over 100 crore and is targeting 120-150 crore in FY27.

Business Segments and Product Mix

Reddy said HMG Stones' business is largely driven by individual homebuyers, who account for about 85% of sales, while builders contribute around 15%. Marble accounts for about 70% of the business, granite around 10%, quartzite about 10%, and other products make up the remaining 10%. Marble starts from around 300 per sq ft, granite from about 200 per sq ft, and quartzite from around 500-600 per sq ft.

Impact of Global Disruptions

The company faces exposure to global supply risks because many colours and varieties of raw material are not available in India. Due to the Middle East disruption, logistics costs for shipments coming from the western side have nearly doubled in some cases. Sailing time has increased from about 28-30 days earlier to nearly 60 days. Overall, logistics-related impact could be around 15-20%. The company maintains stock for about 10-12 months to manage disruptions and has not increased prices yet.

Market Presence and Sustainability

About 90% of HMG Stones' material is consumed domestically, with 10% exported. Karnataka is the largest market, followed by Tamil Nadu and Kerala. The company is focusing more on Ahmedabad, Surat and Mumbai this year. On sustainability, the company uses rooftop solar meeting about 65-70% of power consumption, along with water treatment systems and waste reduction measures including thinner cutting methods.