Kajaria Ceramics Ltd. share price target

Kajaria Ceramics' Q4FY26 result was in-line with our estimate on net sales front, while margins were beat to our forecast. Despite challenging times on subdued demand and increased gas prices, the company managed to report healthy earnings, aided by volume growth. The management guided that the sales volume growth of 11% in Q4FY26 was on account of the sales unification and realignment of the team. Consolidated revenue stood at Rs13.7bn, a healthy growth of 12.4% YoY, while EBITDA was at Rs2.6bn, higher by 90.4% over Q4FY25. Consequently, EBITDA margin improved by 786bps YoY to 19.2%. The...

Revenue grew 12% YoY, led by 11% volume growth. Margins expand sharply (+786 bps YoY), owing to cost optimisation

Kajaria Ceramics (KJC) reported 12.4% YoY consol. revenue growth in Q4FY26, as tiles volume grew 11.3% YoY on a low base (15.7% QoQ; 7-year CAGR of 5.8%).

Kajaria Ceramics (KJC) reported a healthy quarter, with an 11-12% YoY rise in tile volume and revenue owing to business unification efforts and reduced competition amid severe gas availability issues in Morbi.

We interacted with the management of Kajaria Ceramics (KJC), wherein they highlighted a gradual recovery in Q4FY26 led by 78% volume growth, supported by channel destocking and normalization of operations. Supply disruptions in Morbi (gas issues and shutdowns) have created a market share gain opportunity, aided by low...

*over or under performance to benchmark index Kajaria delivered resilient operational performance in Q3FY26, due to efficient margins and strategic improvements. 'Kajaria 2.0' emphasises SKU rationalisation to improve plant efficiency, shift toward value-added products through the conversion of manufacturing facilities and tighter go-to-market model via dealer unification that enables cross-selling across product verticals. But sluggish demand, increased freight rates and ongoing geopolitical issues are concerns. Hence, we reiterate our...

Kajaria Ceramics' Q3FY26 result was in-line with our estimate on net sales and EBITDA front, while net profitability was lower on account of exceptional loss of Rs396mn. In terms of sales volume, the market scenario was weak and also the company did de-stocking of inventory at the dealer's end, leading to no growth of tiles volume. Consolidated revenue stood at Rs11.6bn, up just 1.1% YoY, while EBITDA was at Rs2bn, higher by 31.2% over Q3FY25. Consequently, EBITDA margin improved by 395bps YoY to 17.2%. The company reported net profit of Rs0.8bn, marginally up by 1.8% YoY. Management guided that January...

The company enjoys industry leading margins and returns ratios. Q3FY26 Performance: Kajaria reported a muted topline of 1,168 crore, up 1.1% YoY. Tile sales volumes were at 28.9 MSM, flattish YoY with tile revenues down by 1% YoY to 1030 crore. EBITDA at 201.2 crore, was up 31.2% YoY, with margins up 395 bps YoY to 17.2%, albeit down 78 bps QoQ, because of ~240 bps lower realisation due to discounts provided to reduce SKUs. There were two exceptional items ( 19.4 crore for fraud case and 18.3 crore for labour code provision) amounting 39.6 crore and reported PAT was at 87.7 crore, up 12.9% YoY and...

Kajaria Ceramics (KJC) reported another soft quarter, with flat tile volume and revenue owing to weak demand conditions and intense competition. Bathware and Adhesives revenue grew 9% and 72% YoY, respectively.

Kajaria Ceramics (KJC) has reported fraud in its step-down subsidiary Kerovit Global (Kerovit) following investigations; the Rs200mn fraud is substantial, considering that it is 13% of Kerovit’s total assets as of FY25.

Kajaria Ceramics (KJC) in an exchange filing disclosed a financial fraud conducted by Mr. Dilip Maliwal, CFO of Kerovit Global, a wholly-owned subsidiary of Kajaria Bathware and a step-down subsidiary of KJC.

Cost rationalisation measures boost margins: We highlight the company has taken various measures including staff rationalisation, promoters forgoing salary, unification of sales and packaging re-engineering etc. to control cost, which has boosted operating margins. The company's cost optimization measures included the unification of sales and procurement functions for bulk purchasing, packaging re-engineering resulting in annual savings of 3035 crore, workforce rationalization, a hiring freeze, and stringent control over advertising expenditures. Management expects Profitability to improve on...

Kajaria Ceramics reported a broadly in-line Q2FY26 estimates on the revenue front, however profitability beat expectations on the back of sustained cost optimization measures. Consolidated revenue stood at Rs12bn, up just 1% YoY, reflecting continued weakness in tiles volume amid sluggish domestic demand. However, EBITDA rose sharply by 34% YoY to Rs2.1bn, aided by savings in packaging, procurement, and manpower costs, translating into a margin of 18% (+452bps). PAT came in at Rs1.3bn (+58% YoY). Management highlighted that short-term pain from the ongoing unification of sales and operations has...

We maintain BUY on Kajaria while raising our TP by ~7% to Rs1,550 (from Rs1,450). The company has delivered superior profitability with EBITDA margins significantly expanding by 450bps YoY/110bps QoQ in Q2FY26.

Kajaria reported a moderate financial performance, impacted by a challenging market environment, with domestic demand remaining sluggish. However, the company is optimistic about future growth, driven by potential export improvements, slightly better domestic demand and government initiatives. The integration of its divisions and efforts to optimise costs are expected to yield benefits. Although the integration is expected to improve margins and increase volume growth, sluggish demand may still pose a risk to the realisation of these benefits. Considering these factors, we...

Kajaria Ceramic Ltd.'s (Kajaria) Q1FY26 result was broadly in-line with our estimate on net sales front, however, margins were beat to our forecast. The company undertook various cost saving measures which resulted into betterment of operating margin. The management guided no major capex in near term as demand in domestic market remains subdued. Given uncertainty in the domestic market, the company refrained from giving earnings guidance for FY26. Net sales was marginally up by 0.6% YoY to Rs11bn, while EBITDA came in at Rs1.8bn, higher by 9.3% YoY. The company reported net profit of Rs1.1bn, up...

We have revised our FY26/27 earnings estimates upward by 18.0%/13.1% mainly with improvement in margins on account of cost saving with distribution consolidation, integration of tiles divisions and the discontinuation of low margin tiles. We had downgraded our rating to HOLD' from Accumulate', we value the stock at 36x FY27E EPS to arrive at revised TP of Rs1,192 (earlier Rs 1,171). The management has refrained from providing guidance due to prevailing low demand conditions but expects to outperform...

Weak tiles sales volume in Q1 on a tepid demand environment, but sharp EBITDA beat on the benefit of cost rationalisation projects

Kajaria’s Q4FY25 performance was weak on sales volumes as well as profitability fronts and missed our expectations. However, on a positive note, it has gained market share in FY25 as sales volume growth of 6% YoY was ahead of the industry (2% YoY growth).

We have revised our FY26/27 earnings estimates downward by 7.4%/9.1% due to weak demand, the discontinuation of the Kajaria Plywood business, and margin contraction. We had downgraded our rating to Accumulate' from BUY', we value the stock at 30x FY27E EPS to arrive at revised TP of Rs878 (earlier Rs 966). The management has refrained from providing guidance due to prevailing low demand conditions but expects to outperform the industry in FY26. KJC expects margins of ~14% in FY26, However, Q4FY25 margins were...