Operating Leverage Inflection
Expected: March 2026HIGH confidence
What: New Capacity: ₹440 Cr Capex
Impact: ₹145-165 Cr EBITDA
Pokarna Ltd: Stock Analysis & Fundamentals
Data from 4w agoPokarna Ltd (Building Material USA) — fundamental analysis, earnings data, and key metrics. PE: 25.2. ROE: 27.4%. This stock is not currently in the Nifty 500 momentum outperformers list.
Pokarna Ltd Key Facts
What's Happening
💪Debt reduced 26% YoY — balance sheet strengthening
🌐FII stake increased 0.8% this quarter
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
Current Price
₹927
Dividend Yield
0.06%
Market Cap
2.9K Cr
Valuation
N/AWhy 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
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
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 (Dec 2025) show
- PAT Growth YoY: -60.8%
- Revenue Growth YoY: -39.7%
- Operating Margin: 30.0%
What is Pokarna Ltd's current PE ratio?
Pokarna Ltd's current PE ratio is 25.2x.
- Current PE: 25.2x
- Market Cap: 2.9K Cr
- Dividend Yield: 0.06%
What is Pokarna Ltd's price-to-book ratio?
Pokarna Ltd's price-to-book ratio is 3.5x.
- Price-to-Book (P/B): 3.5x
- Book Value per Share: ₹262
- Current Price: ₹927
Is Pokarna Ltd a fundamentally strong company?
Pokarna Ltd's fundamental strength based on key financial ratios
- Return on Capital (ROCE): 28.0%
Is Pokarna Ltd debt free?
Pokarna Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹275 Cr
What is Pokarna Ltd's return on equity (ROE) and ROCE?
Pokarna Ltd's return ratios over recent years
- FY2023: ROCE 15.0%
- FY2024: ROCE 18.0%
- FY2025: ROCE 28.0%
Is Pokarna Ltd's cash flow positive?
Pokarna Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹191 Cr
- Free Cash Flow (FCF): ₹109 Cr
- CFO/PAT Ratio: 102% (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: ₹927
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)
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 ₹191 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)
- 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
- 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.