Kajaria Ceramics (500233) Q2 25/26 earnings summary

Executive summary

• Consolidated revenue for Q2 FY26 was INR 1,186.56 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, and growth-ready organization.

• Leadership transition with Chetan and Rishi elevated to Vice Chairman and Managing Director roles, signaling a renewed focus on strategic growth and operational excellence.

• 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

• Q2 FY26 consolidated revenue grew 1% year-over-year to INR 1,186.56 crore; H1 FY26 revenue was INR 2,290.89 crore, flat year-over-year.

• Q2 FY26 PAT increased 58% year-over-year to INR 133.98 crore; H1 FY26 PAT rose 39% to INR 244.29 crore.

• EBITDA for Q2 FY26 was INR 212.90 crore, up 34% year-over-year; EBITDA margin improved to 17.94%.

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

• Interim dividend of ₹8 per share declared, record date set for 24 October 2025, payment by 14 November 2025.

Outlook and guidance

• Management expects volume growth to return in H2 FY26, with optimism for improved demand and operational benefits from ongoing transformation.

• Cost optimization efforts will continue over the next two to three quarters, with further savings expected but margins not specifically quantified.

• Organization is positioned to benefit from any demand recovery, with systems and processes ready for growth.

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

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