Operating Leverage Inflection
Expected: March 2026HIGH confidence
What: New Capacity: ₹440 Cr Capex
Impact: ₹145-165 Cr EBITDA
Pokarna Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +10.0%Weak
In , Pokarna Ltd (Building Material USA) is outperforming Nifty 500 with +10.0% relative strength. Fundamentals: Weak.
Pokarna Ltd Key Facts
- PE Ratio
- 41.8x
- Market Cap
- ₹3,367 Cr
- PAT Growth YoY
- -56%
- Revenue Growth YoY
- -44%
- OPM
- 31.0%
- RS vs Nifty 500
- +10.0%
PE: At PeakFalling Knife
What's Happening
🔻Earnings declining and PE falling — fundamentals deteriorating
💪Debt reduced 36% YoY — balance sheet strengthening
🌐FII stake increased 0.8% this quarter
💰Trading 78% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Operating Leverage Inflection
March 2026HIGH
2. Geographical Expansion
OngoingMEDIUM
Key Risks
1. US tariff uncertainties and health risk investigations (Silicosis) associated wi
HIGH2. Export-heavy model exposed to global demand cycles and trade barriers
MEDIUMSector-Specific Signals
Quartz Revenue Contribution94.8%
Granite Segment PBT₹-5.13 CrWidened Loss
Interest Coverage Ratio4.28x
Debt to EBITDA2.40x
Key Numbers
PAT Growth YoY
-56%
Stable
Revenue YoY
-44%
Stable
Operating Margin
31.0%
-700 bps YoY
PE Ratio
41.8
Current Price
₹1,086
Dividend Yield
0.06%
Fundamental Score
35/100
Weak
3Y PAT CAGR
+7%
Market Cap
3.4K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Pokarna Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 19, 2026
Geographical Expansion
Expected: OngoingMEDIUM confidence
What: New Markets: Canada, France, Mexico, Russia
What Are the Key Risks for Pokarna Ltd?
Earnings deceleration risks from management commentary
US tariff uncertainties and health risk investigations (Silicosis) associated wi
HIGHTrigger: US tariff uncertainties and health risk investigations (Silicosis) associated with quartz fabrication.
Management view: Focusing on premium designs and raw material security.
Monitor: regulatory
Export-heavy model exposed to global demand cycles and trade barriers
MEDIUMTrigger: Export-heavy model exposed to global demand cycles and trade barriers.
Management view: Diversifying into non-US markets like Canada and Europe.
Monitor: geopolitical
What Did Pokarna Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹134.96 Cr
YoY -39.64%QoQ +13.93%
Revenue recovered sequentially but remains significantly lower than the previous year due to export headwinds.
EBITDA
₹40.72 Cr
YoY -47.55%Margin 30.17%
Margins improved by over 1000 bps sequentially but contracted by 452 bps year-on-year.
PAT
₹20.37 Cr
YoY -59.74%QoQ +221.8%
Net profit was bolstered by the sequential volume recovery but weighed down by high interest and depreciation costs.
Other Highlights
• Quartz Surfaces segment generated ₹128 Cr, accounting for 94.8% of total revenue.
• Granite segment reported a loss before tax of ₹5.13 Cr for the quarter.
• Interest costs of ₹7.91 Cr and depreciation of ₹12.35 Cr impacted bottom-line performance.
What Sector Metrics Matter for Pokarna Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Quartz Revenue Contribution
94.8%
Why: Quartz surfaces remain the dominant profit driver for the consolidated entity.
Granite Segment PBT
₹-5.13 Cr
YoY Widened Loss
Why: Operational challenges and low demand in the granite division.
Interest Coverage Ratio
4.28x
Why: Average ratio remains stable but absolute interest burden weighs on current earnings.
Debt to EBITDA
2.40x
Why: Elevated leverage relative to current earnings trajectory.
Employee Cost % of Revenue
15.57%
YoY 511 bps
Why: Lower revenue base led to higher fixed cost absorption as a percentage of sales.
What Is Pokarna Ltd's Management Guidance?
Forward-looking targets from management for FY27
OPM Guidance
31%
Capex Plan
₹440 Cr
Revenue Outlook
₹450-525 Cr
Margin Outlook
Anticipated EBITDA of ₹145-165 Cr from the new production line.
Capex Plan
₹440 Cr
Third Bretonstone quartz production line in Telangana.
Management Tone: CAUTIOUS
How Fast Is Pokarna Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | -44% | -8% | Stable |
| PAT (Net Profit) | -56% | +7% | Stable |
| OPM | 31.0% | -700 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
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Frequently Asked Questions: Pokarna Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Pokarna Ltd's latest quarterly results?
Pokarna Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: -55.9% (stable)
- Revenue Growth YoY: -44.1%
- Operating Margin: 31.0% (volatile)
Is Pokarna Ltd's profit growing or declining?
Pokarna Ltd's profit is declining with an stable trend.
- PAT Growth YoY: -55.9% (latest quarter)
- PAT Growth QoQ: +30.0% (sequential)
- 3-Year PAT CAGR: +7.1%
- Trend: Stable — consistent growth pattern
What is Pokarna Ltd's revenue growth trend?
Pokarna Ltd's revenue growth trend is stable.
- Revenue Growth YoY: -44.1%
- Revenue Growth QoQ: +8.9% (sequential)
- 3-Year Revenue CAGR: -7.6%
How is Pokarna Ltd's operating margin trending?
Pokarna Ltd's operating margin is volatile.
- Current OPM: 31.0%
- OPM Change YoY: -7.0% basis points
- OPM Change QoQ: +1.0% basis points
What is Pokarna Ltd's 3-year profit and revenue CAGR?
Pokarna Ltd's long-term compounding rates
- 3-Year Profit CAGR: +7.1%
- 3-Year Revenue CAGR: -7.6%
Is Pokarna Ltd's growth accelerating or decelerating?
Pokarna Ltd's earnings growth is stable with mixed signals on a sequential basis.
- YoY Acceleration: +4.9% bps
- Sequential Acceleration: -20.0% bps
- Margin Warning: Operating margins are under pressure
What is Pokarna Ltd's trailing twelve month (TTM) performance?
Pokarna Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹80 Cr
- TTM PAT Growth: -57.5% YoY
- TTM Revenue: ₹571 Cr
- TTM Revenue Growth: -38.7% YoY
- TTM Operating Margin: 29.4%
Is Pokarna Ltd overvalued or undervalued?
Pokarna Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 41.8x
- Price-to-Book: 3.9x
What is Pokarna Ltd's current PE ratio?
Pokarna Ltd's current PE ratio is 41.8x.
- Current PE: 41.8x
- Market Cap: 3.4K Cr
- Dividend Yield: 0.06%
How does Pokarna Ltd's valuation compare to its history?
Pokarna Ltd's current PE is 41.8x.
- Current PE: 41.8x
- Valuation Assessment: Significantly Overvalued
What is Pokarna Ltd's price-to-book ratio?
Pokarna Ltd's price-to-book ratio is 3.9x.
- Price-to-Book (P/B): 3.9x
- Book Value per Share: ₹276
- Current Price: ₹1086
Is Pokarna Ltd a fundamentally strong company?
Pokarna Ltd is rated Weak with a fundamental score of 35.19/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: -44.1% (10% weight)
- PAT Growth YoY: -55.9% (10% weight)
- PAT Growth QoQ: +30.0% (10% weight)
- Margins stable (10% weight)
Is Pokarna Ltd debt free?
Pokarna Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹429 Cr
What is Pokarna Ltd's return on equity (ROE) and ROCE?
Pokarna Ltd's return ratios over recent years
- FY2024: ROCE 18.0%
- FY2025: ROCE 28.0%
- FY2026: ROCE 12.0%
Is Pokarna Ltd's cash flow positive?
Pokarna Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹183 Cr
- Free Cash Flow (FCF): ₹-138 Cr
- CFO/PAT Ratio: 226% (strong cash conversion)
What is Pokarna Ltd's dividend yield?
Pokarna Ltd's current dividend yield is 0.06%.
- Dividend Yield: 0.06%
- Current Price: ₹1086
Who holds Pokarna Ltd shares — promoters, FII, DII?
Pokarna Ltd's shareholding pattern (Mar 2026)
- Promoters: 56.7%
- FII (Foreign): 6.9%
- DII (Domestic): 16.0%
- Public: 20.5%
Is promoter holding increasing or decreasing in Pokarna Ltd?
Pokarna Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 56.7% (Mar 2026)
- Previous Quarter: 56.7% (Dec 2025)
- Change: 0.00% (stable)
How long has Pokarna Ltd been outperforming Nifty 500?
Pokarna Ltd has been outperforming Nifty 500 for 1 consecutive week, indicating early-stage outperformance.
Is Pokarna Ltd a new momentum entry or an established outperformer?
Pokarna Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Pokarna Ltd?
Pokarna Ltd has 2 key growth catalysts identified from recent earnings analysis
- Operating Leverage Inflection — New capacity nearly doubles potential quartz revenue and provides significant operating leverage.
- Geographical Expansion — Diversification reduces over-reliance on the US market currently facing headwinds.
What are the key risks in Pokarna Ltd?
Pokarna Ltd has 2 key risks worth monitoring
- [HIGH] US tariff uncertainties and health risk investigations (Silicosis) associated wi — US tariff uncertainties and health risk investigations (Silicosis) associated with quartz fabrication.
- [MEDIUM] Export-heavy model exposed to global demand cycles and trade barriers — Export-heavy model exposed to global demand cycles and trade barriers.
What is Pokarna Ltd's management guidance for growth?
Pokarna Ltd's management has provided the following forward guidance for FY27
- Revenue outlook: ₹450-525 Cr
- OPM guidance: 31%
- Capex plan: ₹440 Cr for Third Bretonstone quartz production line in Telangana.
- Management tone: cautious
What sector-specific metrics matter most for Pokarna Ltd?
Pokarna Ltd's most important sub-sector-specific KPIs from the latest concall
- Quartz Revenue Contribution: 94.8% — Quartz surfaces remain the dominant profit driver for the consolidated entity.
- Granite Segment PBT: ₹-5.13 Cr (YoY Widened Loss) — Operational challenges and low demand in the granite division.
- Interest Coverage Ratio: 4.28x — Average ratio remains stable but absolute interest burden weighs on current earnings.
- Debt to EBITDA: 2.40x — Elevated leverage relative to current earnings trajectory.
- Employee Cost % of Revenue: 15.57% (YoY 511 bps) — Lower revenue base led to higher fixed cost absorption as a percentage of sales.
Is Pokarna Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Pokarna Ltd may be worth studying
- Cash flow is positive — CFO ₹183 Cr
What is the investment thesis for Pokarna Ltd?
Pokarna Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Operating Leverage Inflection
Risk Factors (Bear Case)
- Margins under pressure
- Appears significantly overvalued
- Key risk: US tariff uncertainties and health risk investigations (Silicosis) associated wi
What is the future outlook for Pokarna Ltd?
Pokarna Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: Operating Leverage Inflection
- Key Risk: US tariff uncertainties and health risk investigations (Silicosis) associated wi
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.