Kajaria Ceramics (500233) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue was INR 1,104 crore, down 1% year-over-year due to muted tile demand and closure of the plywood division.

• Margins improved to 16.72% from 15% in Q1 FY25, driven by cost optimization and division unification.

• Largest ceramic/vitrified tile manufacturer in India with 90.5 MSM annual capacity across nine plants, including recent expansions.

• Branded players gained market share in a flat domestic market; exports declined 20% in FY25 but showed slight recovery in Q1 FY26.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, were approved and reviewed by the Board and auditors.

Financial highlights

• Consolidated revenue for FY25 was ₹4,683 crore, up 2% year-over-year; Q1 FY26 revenue was ₹1,104 crore, down 1% year-over-year.

• Q1 FY26 consolidated net profit was ₹112.56 crore, up from ₹97.77 crore in Q1 FY25.

• EBITDA margin for Q1 FY26 was 16.72% (vs. 15% in Q1 FY25); FY25 EBITDA margin was 12.76%.

• Bathware division turned profitable after losses last year; adhesives division targets INR 120 crore revenue with 17% EBITDA margin.

• Plywood division closure led to cost savings, with only minor residual salary expenses in Q1.

Outlook and guidance

• Domestic market remains muted but is expected to improve with increased government infrastructure spending and export recovery.

• Exports projected to rise to INR 18,000–20,000 crore for FY26, up from INR 16,000 crore in FY25.

• Tile adhesives market expected to grow at 12–15% CAGR, with new manufacturing plant in Tamil Nadu to be operational by June 2025.

• No new capacity additions planned; growth to come from better capacity utilization and inventory reduction.

• Cost optimization measures are ongoing, with further benefits expected in coming quarters.