Operating Leverage Inflection
Expected: CurrentHIGH confidence
What: EBITDA Margin: 17.2%
Impact: 442 bps expansion
“During the year, we have achieved cost savings of more than INR150 crores on an annualized basis.”
Kajaria Ceramics Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +18.8%Strong5w Streak
In , Kajaria Ceramics Ltd (Ceramics/Tiles/Sanitaryware) is outperforming Nifty 500 with +18.8% relative strength. Fundamentals: Strong. On a 5-week streak.
Kajaria Ceramics Ltd Key Facts
- PE Ratio
- 33.8x
- Market Cap
- ₹17,585 Cr
- PAT Growth YoY
- +265%
- Revenue Growth YoY
- +12%
- OPM
- 19.0%
- RS vs Nifty 500
- +18.8%
Strong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
📊Debt increased 27% YoY — leverage rising
🌐FII stake decreased 4.5% this quarter
🏛️DII reducing — stake down 2.4%
Earnings Acceleration Triggers
1. Operating Leverage Inflection
CurrentHIGH
2. Value Added Product Mix Shift
Q4 FY26MEDIUM
3. EBITDA Margin expansion of 442 bps YoY
HIGH
Key Risks
1. Fraud in step-down subsidiary Kerovit Global involving ₹20 Cr misappropriation
MEDIUM2. Gas prices expected to increase slightly by ₹1 in Q4
LOWSector-Specific Signals
Tiles Volume Growth0%0%
Average Gas Price₹37
Capacity UtilisationAlmost Full
Working Capital Cycle64 days+8 days
Key Numbers
PAT Growth YoY
+265%
Stable
Revenue YoY
+12%
Stable
Operating Margin
19.0%
+800 bps YoY
PE Ratio
33.8
Current Price
₹1,104
Dividend Yield
0.82%
Fundamental Score
69/100
Strong
3Y PAT CAGR
+12%
Market Cap
17.6K Cr
Valuation
Slightly Undervalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Kajaria Ceramics Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Value Added Product Mix Shift
Expected: Q4 FY26MEDIUM confidence
What: GVT Conversion: 9.1 MSM
“In Gailpur plant, we have converted 1 unit with a capacity of 9.1 million square meters from ceramic floor tiles to glazed vitrified tiles”
EBITDA Margin expansion of 442 bps YoY
HIGH confidence
What: EBITDA Margin expansion of 442 bps YoY
“EBITDA margin in quarter 3 FY '26 is 17.2%, plus 442 basis points against 12.8% in corresponding quarter last year.”
What Are the Key Risks for Kajaria Ceramics Ltd?
Earnings deceleration risks from management commentary
Fraud in step-down subsidiary Kerovit Global involving ₹20 Cr misappropriation
MEDIUMTrigger: A senior employee forged signatures to siphon funds into a fake vendor account over two years.
Impact: PAT impact: ₹39.64 Cr exceptional item
Management view: Filed police complaint, recovered ₹60 lakhs, and appointed EY for forensic audit.
Monitor: litigation
Gas prices expected to increase slightly by ₹1 in Q4
LOWTrigger: Temporary hike in global prices due to extreme cold in Europe.
Impact: PAT impact: ₹50-80 lakhs
Management view: Using a combination of gas and biomass to mitigate costs.
Monitor: commodity
What Is Kajaria Ceramics Ltd's Management Saying?
Key quotes from recent conference calls
“During the year, we have achieved cost savings of more than INR150 crores on an annualized basis. These efficiencies came from multiple areas [Previous Cost Savings guidance]”
“Operation Manthan was a structured review of all our internal systems... we have achieved cost savings of more than INR150 crores [Initiative: Operation Manthan]”
“This INR20 crores was a payment made from Kerovit Global's balance sheet to a vendor who essentially was a self-payment to the CFO. [Risk (litigation): MEDIUM]”
“There will be maybe marginal gap, let's say, INR50 lakh to INR80 lakh in the next quarter. So beyond that, there will be no increase [Risk (commodity): LOW]”
What Did Kajaria Ceramics Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹1,168 Cr
YoY 0%
Why: Revenue was flattish due to no growth in tiles volume and the absence of Ply sales following the closure of that division.
Consolidated revenue remained stagnant as volume growth in tiles failed to materialize.
EBITDA
Not Disclosed
YoY +49%Margin 17.2%
Why: Margins improved due to cost optimization measures despite a drop in selling prices from inventory liquidation.
Year-on-year margin expansion was significant, though sequential performance was impacted by SKU reduction discounts.
PAT
₹88 Cr
YoY +13%
Why: PAT growth was moderated by adjustments of exceptional items amounting to INR39.64 crores during the quarter.
Bottom line growth was impacted by a one-time exceptional charge related to the subsidiary fraud.
Other Highlights
• Bathware segment revenue grew 9% to ₹103 Cr.
• Adhesive revenue grew to ₹35 Cr from ₹20 Cr YoY.
• Working capital days increased to 64 days from 56 days.
What Sector Metrics Matter for Kajaria Ceramics Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Tiles Volume Growth
0%
YoY 0%
Why: Weak market demand and dealer destocking.
Average Gas Price
₹37
Why: Prices remained stable across regions.
Capacity Utilisation
Almost Full
Why: Operating at high levels despite weak volume growth.
Working Capital Cycle
64 days
YoY +8 days
Why: Increase in receivables and decrease in other current liabilities.
Advertisement Spend
₹24 Cr
YoY Lower
Why: Negotiated better rates and skipped an annual dealer meet in Thailand.
Tiles Realisation per Sqm
₹365
YoY -9%
Why: Decline from ₹401 due to pricing pressure and SKU liquidation discounts.
Institutional vs Retail Mix
30/70
Why: Retail remains the dominant channel.
Exceptional Item (Fraud)
₹39.64 Cr
YoY New
Why: Provisioning for misappropriation of funds in Kerovit Global.
What Is Kajaria Ceramics Ltd's Management Guidance?
Forward-looking targets from management for Q4 FY26
OPM Guidance
17–18%
Revenue Outlook
Positive growth expected from Q4 onwards
Margin Outlook
Margins to be maintained in the current band
Volume
Double-digit growth in sanitaryware
Management Tone: CAUTIOUS
Guidance Changes
LOWERED
Tiles Volume Growth: Hopeful for growth → Flattish for Q3
How Fast Is Kajaria Ceramics Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +12% | +3% | Stable |
| PAT (Net Profit) | +265% | +12% | Stable |
| OPM | 19.0% | +800 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Frequently Asked Questions: Kajaria Ceramics Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Kajaria Ceramics Ltd's latest quarterly results?
Kajaria Ceramics Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +265.1% (stable)
- Revenue Growth YoY: +12.4%
- Operating Margin: 19.0% (volatile)
Is Kajaria Ceramics Ltd's profit growing or declining?
Kajaria Ceramics Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +265.1% (latest quarter)
- PAT Growth QoQ: +82.6% (sequential)
- 3-Year PAT CAGR: +12.1%
- Trend: Stable — consistent growth pattern
What is Kajaria Ceramics Ltd's revenue growth trend?
Kajaria Ceramics Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +12.4%
- Revenue Growth QoQ: +17.6% (sequential)
- 3-Year Revenue CAGR: +3.3%
How is Kajaria Ceramics Ltd's operating margin trending?
Kajaria Ceramics Ltd's operating margin is volatile.
- Current OPM: 19.0%
- OPM Change YoY: +8.0% basis points
- OPM Change QoQ: +2.0% basis points
What is Kajaria Ceramics Ltd's 3-year profit and revenue CAGR?
Kajaria Ceramics Ltd's long-term compounding rates
- 3-Year Profit CAGR: +12.1%
- 3-Year Revenue CAGR: +3.3%
Is Kajaria Ceramics Ltd's growth accelerating or decelerating?
Kajaria Ceramics Ltd's earnings growth is stable with mixed signals on a sequential basis.
- YoY Acceleration: +91.1% bps
- Sequential Acceleration: +85.8% bps
What is Kajaria Ceramics Ltd's trailing twelve month (TTM) performance?
Kajaria Ceramics Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹487 Cr
- TTM PAT Growth: +62.3% YoY
- TTM Revenue: ₹5,000 Cr
- TTM Revenue Growth: +3.8% YoY
- TTM Operating Margin: 17.8%
Is Kajaria Ceramics Ltd overvalued or undervalued?
Kajaria Ceramics Ltd appears slightly undervalued based on our fair value analysis.
- Valuation Signal: Slightly Undervalued
- Current PE: 33.8x
- Price-to-Book: 5.8x
What is Kajaria Ceramics Ltd's current PE ratio?
Kajaria Ceramics Ltd's current PE ratio is 33.8x.
- Current PE: 33.8x
- Market Cap: 17.6K Cr
- Dividend Yield: 0.82%
How does Kajaria Ceramics Ltd's valuation compare to its history?
Kajaria Ceramics Ltd's current PE is 33.8x.
- Current PE: 33.8x
- Valuation Assessment: Slightly Undervalued
What is Kajaria Ceramics Ltd's price-to-book ratio?
Kajaria Ceramics Ltd's price-to-book ratio is 5.8x.
- Price-to-Book (P/B): 5.8x
- Book Value per Share: ₹192
- Current Price: ₹1104
Is Kajaria Ceramics Ltd a fundamentally strong company?
Kajaria Ceramics Ltd is rated Strong with a fundamental score of 69.49/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +12.4% (10% weight)
- PAT Growth YoY: +265.1% (10% weight)
- PAT Growth QoQ: +82.6% (10% weight)
- Margins stable (10% weight)
Is Kajaria Ceramics Ltd debt free?
Kajaria Ceramics Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹229 Cr
What is Kajaria Ceramics Ltd's return on equity (ROE) and ROCE?
Kajaria Ceramics Ltd's return ratios over recent years
- FY2024: ROCE 21.0%
- FY2025: ROCE 17.0%
- FY2026: ROCE 23.0%
Is Kajaria Ceramics Ltd's cash flow positive?
Kajaria Ceramics Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹664 Cr
- Free Cash Flow (FCF): ₹328 Cr
- CFO/PAT Ratio: 136% (strong cash conversion)
What is Kajaria Ceramics Ltd's dividend yield?
Kajaria Ceramics Ltd's current dividend yield is 0.82%.
- Dividend Yield: 0.82%
- Current Price: ₹1104
Who holds Kajaria Ceramics Ltd shares — promoters, FII, DII?
Kajaria Ceramics Ltd's shareholding pattern (Mar 2026)
- Promoters: 47.7%
- FII (Foreign): 10.2%
- DII (Domestic): 27.5%
- Public: 14.6%
Is promoter holding increasing or decreasing in Kajaria Ceramics Ltd?
Kajaria Ceramics Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 47.7% (Mar 2026)
- Previous Quarter: 47.7% (Dec 2025)
- Change: 0.00% (stable)
How long has Kajaria Ceramics Ltd been outperforming Nifty 500?
Kajaria Ceramics Ltd has been outperforming Nifty 500 for 5 consecutive weeks, indicating building momentum.
Is Kajaria Ceramics Ltd a new momentum entry or an established outperformer?
Kajaria Ceramics Ltd is an established outperformer with 5 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Kajaria Ceramics Ltd?
Kajaria Ceramics Ltd has 3 key growth catalysts identified from recent earnings analysis
- Operating Leverage Inflection — Cost optimization through Operation Manthan is yielding tangible savings.
- Value Added Product Mix Shift — Converting ceramic floor tile capacity to glazed vitrified tiles to meet higher-value market demand.
- EBITDA Margin expansion of 442 bps YoY — Driven by the 'Operation Manthan' cost optimization journey and reduction in manpower and travel expenses.
What are the key risks in Kajaria Ceramics Ltd?
Kajaria Ceramics Ltd has 2 key risks worth monitoring
- [MEDIUM] Fraud in step-down subsidiary Kerovit Global involving ₹20 Cr misappropriation — A senior employee forged signatures to siphon funds into a fake vendor account over two years.
- [LOW] Gas prices expected to increase slightly by ₹1 in Q4 — Temporary hike in global prices due to extreme cold in Europe.
What did Kajaria Ceramics Ltd's management say in the latest earnings call?
In Q3 FY26, Kajaria Ceramics Ltd's management highlighted
- "During the year, we have achieved cost savings of more than INR150 crores on an annualized basis. These efficiencies came from multiple areas [Previo..."
- "Operation Manthan was a structured review of all our internal systems... we have achieved cost savings of more than INR150 crores [Initiative: Operat..."
- "This INR20 crores was a payment made from Kerovit Global's balance sheet to a vendor who essentially was a self-payment to the CFO. [Risk (litigation..."
What is Kajaria Ceramics Ltd's management guidance for growth?
Kajaria Ceramics Ltd's management has provided the following forward guidance for Q4 FY26
- Revenue outlook: Positive growth expected from Q4 onwards
- OPM guidance: 17–18%
- Capex plan: null for No major capex planned
- Management tone: cautious
- Milestone: [LOWERED] Tiles Volume Growth: Hopeful for growth → Flattish for Q3
What sector-specific metrics matter most for Kajaria Ceramics Ltd?
Kajaria Ceramics Ltd's most important sub-sector-specific KPIs from the latest concall
- Tiles Volume Growth: 0% (YoY 0%) — Weak market demand and dealer destocking.
- Average Gas Price: ₹37 — Prices remained stable across regions.
- Capacity Utilisation: Almost Full — Operating at high levels despite weak volume growth.
- Working Capital Cycle: 64 days (YoY +8 days) — Increase in receivables and decrease in other current liabilities.
- Advertisement Spend: ₹24 Cr (YoY Lower) — Negotiated better rates and skipped an annual dealer meet in Thailand.
- Tiles Realisation per Sqm: ₹365 (YoY -9%) — Decline from ₹401 due to pricing pressure and SKU liquidation discounts.
Is Kajaria Ceramics Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Kajaria Ceramics Ltd may be worth studying
- Earnings growing at +265.1% YoY
- Valuation: appears slightly undervalued
- Cash flow is positive — CFO ₹664 Cr
What is the investment thesis for Kajaria Ceramics Ltd?
Kajaria Ceramics Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +12.4% YoY
- Growth catalyst: Operating Leverage Inflection
Risk Factors (Bear Case)
- Key risk: Fraud in step-down subsidiary Kerovit Global involving ₹20 Cr misappropriation
What is the future outlook for Kajaria Ceramics Ltd?
Kajaria Ceramics Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Margin Trend: volatile
- Valuation: Slightly Undervalued
- Key Catalyst: Operating Leverage Inflection
- Key Risk: Fraud in step-down subsidiary Kerovit Global involving ₹20 Cr misappropriation
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.