Kajaria Ceramics (500233) Q2 25/26 earnings summary

Executive summary

• Consolidated revenue for Q2 FY26 was INR 1,186 crore, up 1% year-over-year, reflecting minimal sales growth due to soft market conditions and the closure of the plywood division.

• The company is undergoing a transformation focused on cost optimization, capital pooling, and strategic restructuring to build a leaner, more agile organization.

• Leadership changes include the elevation of Chetan and Rishi to Vice Chairman and Managing Director, respectively, signaling a commitment to strategic growth.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2025, along with an interim dividend of ₹8 per share for FY 2025-26.

• Financial statements reviewed and approved by the Audit Committee and Board, with limited review by statutory auditors confirming compliance and no material misstatements.

Financial highlights

• EBITDA margin improved to 17.94% in Q2 FY26, up 122 bps sequentially and 447 bps year-over-year.

• EBITDA for Q2 FY26 was ₹212.90 crore, up 34% year-over-year; PAT increased 58% to ₹133.98 crore.

• Consolidated revenue from operations for Q2 FY26 was ₹1,186.01 crore, up from ₹1,161.81 crore in Q2 FY25; H1 FY26 revenue was ₹2,288.75 crore.

• EPS (Basic) for Q2 FY26 was ₹8.39, up from ₹5.68 in Q2 FY25.

• Working capital days reduced to 51 as of September 30, 2025.

Outlook and guidance

• Management expects volume growth to return in H2 FY26, with optimism for improved performance in Q3 and Q4.

• Cost optimization efforts are ongoing, with further savings anticipated in raw materials, finished goods, salaries, and administrative overheads over the next two to three quarters.

• Interim dividend signals confidence in ongoing business performance and cash flow generation.

• No specific EBITDA margin guidance was provided, but management expects margins to improve further.

• Focus on transformation and renewed energy under new leadership, aiming for continued margin improvement and operational efficiency.