KAJARIACERNSEQ4 FY26May 07, 2026

Kajaria Ceramics Limited

8,067words

144turns

10analyst exchanges

7executives

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Management on call

Ashok Kajaria

CHAIRMAN – KAJARIA CERAMICS LIMITED

Chetan Kajaria

VICE CHAIRMAN – KAJARIA CERAMICS LIMITED

Rishi Kajaria

MANAGING DIRECTOR – KAJARIA CERAMICS LIMITED

Kartik Kajaria

HEAD, ADHESIVE DIVISION – KAJARIA CERAMICS LIMITED

Sanjeev Agarwal

CHIEF FINANCIAL OFFICER

Parveen Gupta

VICE PRESIDENT FINANCE – KAJARIA CERAMICS LIMITED

Girish Choudhary

SPARK INSTITUTIONAL EQUITIES PRIVATE LIMITED

Key numbers — 40 extracted

11%

team of Kajaria Ceramics. I'm pleased to inform that this quarter we achieved a volume growth of 11%. This is the result of several efforts made towards unification of sales. During the first 9 mont

'26, which was a result of efforts made by us in the first 9 months. The production has fallen by 7% during the quarter due to shutdown of our Morbi plants in March, which have started from 16th of

12%

h have started from 16th of this month. In quarter 4 '26, our consolidated revenue increased by 12% to INR1,373 crores compared to the corresponding quarter last year. EBITDA margin for quarter 4 s

INR1,373 crore

started from 16th of this month. In quarter 4 '26, our consolidated revenue increased by 12% to INR1,373 crores compared to the corresponding quarter last year. EBITDA margin for quarter 4 stood at 19.19%. Ma

19.19%

,373 crores compared to the corresponding quarter last year. EBITDA margin for quarter 4 stood at 19.19%. Margin improvement is result of cost optimization and some improvement in sales realization over

INR1,212 crore

ata for the quarter segment-wise financial performance. Tiles segment grew by 11% year-to-year at INR1,212 crores in quarter 4 F '26 compared to INR1,088 crores in quarter 4 F '25. Bathware segment registered

INR1,088 crore

ormance. Tiles segment grew by 11% year-to-year at INR1,212 crores in quarter 4 F '26 compared to INR1,088 crores in quarter 4 F '25. Bathware segment registered a 6% growth in revenue reaching INR117 crores in

n quarter 4 F '26 compared to INR1,088 crores in quarter 4 F '25. Bathware segment registered a 6% growth in revenue reaching INR117 crores in quarter 4 compared to INR111 crores in quarter 4 '25.

INR117 crore

o INR1,088 crores in quarter 4 F '25. Bathware segment registered a 6% growth in revenue reaching INR117 crores in quarter 4 compared to INR111 crores in quarter 4 '25. Revenues from the adhesive group were I

INR111 crore

athware segment registered a 6% growth in revenue reaching INR117 crores in quarter 4 compared to INR111 crores in quarter 4 '25. Revenues from the adhesive group were INR44 crores i

INR44 crore

es in quarter 4 compared to INR111 crores in quarter 4 '25. Revenues from the adhesive group were INR44 crores in quarter 4 '26 as compared to INR21 crores in quarter 4 '25. EBITDA improved in quarter 4 F '2

INR21 crore

om the adhesive group were INR44 crores in quarter 4 '26 as compared to INR21 crores in quarter 4 '25. EBITDA improved in quarter 4 F '26 to 19.19% as compared to 10.01% in quarter

Guidance — 20 items

Chetan Kajaria

“The momentum has started now and looking good '26-'27 going forward.”

Chetan Kajaria

“I think the demand is there and tile is a very small segment in the entire real estate project.”

Ashok Kajaria

“See, guidance, as you are aware, I have always given, right?”

Ashok Kajaria

“So after I give my guidance, you people say you have not done this.”

Ashok Kajaria

“So my request will be going forward not to give any guidance, and we perform and prove to you people that we are doing a good job as a team.”

Sanjeev Agarwal

“But one thing is there, the prices will be much higher than what we see earlier.”

Chetan Kajaria

“That is the current scenario going forward from May 1 onwards.”

Ashok Kajaria

“So as of today, nobody knows how many plants will run, how many plants will be able to run properly.”

Ashok Kajaria

“A lot of questions will be answered on Monday 4 because first, second, third is a holiday; people are expecting to start.”

Sonali Salgaonkar

“And going forward, with that inventory liquidation behind us, our sales would be more in line with our production.”

Risks & concerns — 7 flagged

So the exact number is difficult to say, but calculated wise, the prices have gone up quite a bit.

— Ashok Kajaria

A product like 4 feet by 2 feet which was selling at INR20 a square feet has to be sold at anywhere between INR27 to INR28 because that is the impact of gas.

— Ashok Kajaria

I'm not talking about other inputs like packing and all that, but just the impact of gas is roughly about 35% to 40%, number one.

— Ashok Kajaria

Number two, as the plants were closed, the pressure of export doesn't even arise because in the month of April, the exports has hardly been INR400 crores to INR500 crores.

— Ashok Kajaria

So like on a Y-o-Y basis, we can see some bit of a decline in our production in the current June quarter.

— Utkarsh Nopany

And as far as mustard is concerned, there is no challenge.

— Ashok Kajaria

As we shared earlier, we cannot give you month-to-month, First, our CFO already said that April, June quarter is normally weak.

— Ashok Kajaria

Q&A — 10 exchanges

Congratulations on strong set of numbers. Sir, I wanted to get a sense on Q4 growth. One is because of unification. And secondly, we believe because of this Iran thing that Morbi has taken a shutdown. Possible to bifurcate how much volume could be coming because of the Morbi shutdown? And secondly, how are the things looking on Q1 side?

Chetan Kajaria

So this volume growth is not because of only the Morbi shutdown. In January and February also, we had a volume growth. It was consistently throughout quarter 4 in Jan, Feb and March. And what was the second question, please? So how are the things looking in Q1? Q1 should be stronger than Q4? The momentum has started now and looking good '26-'27 going forward. So we can't break it down quarter-wise, but the good momentum has started now I would say. In general, Q1 historically is low in the industry and Kajaria. So Q4 cannot be compared with Q1. But the whole year is going to be much better. I

Congratulations on a great set of numbers. Just continuing with the last participant's question. You generally used to give a breakup of North, South and West average gas prices. Could you give that to us for Q4?

Sanjeev Agarwal

So North is roughly INR55.54 per SCM for quarter 4. South was INR49.6 and West was INR46.57. And could we have current prices too if possible? What is adhesives working out to be? April, the price in North is roughly INR62.5. South is around INR81 and West is INR79. Gas prices not the complete -- gas prices. Understood. So you're saying that you also have biofuel because of which the average fuel prices must be on the lower side. Is my understanding correct? Correct. Yes. So average fuel price would be lower than the gas price. Understood. This is where we would have some advantage versus Morb

Many congratulations on good set of numbers. My first question is related to the fuel. As you had given that the fuel prices have increased in all the 3 locations. But if I look at your fuel expenses as a percentage of sales has been down. So is that the impact has not reflected in the Q4 or the price hike, which you had highlighted already taken, that's the impact as well?

Chetan Kajaria

So we took a price hike in early March. So that is reflected in the... Your question was fuel prices down in the Q4.? Yes, fuel prices as a percentage of sales has been down. That is because of the lower production, we produced less 7%. We sold more and we are comparing the percentage on sales. So sale is higher and production is less. Sale is higher by 10%, 11%, 12% and production is down by 7%. So as a percentage, the fuel price have gone down. In fact actually the price per square meter has gone up. Absolute number. Correct, sir. Second thing on the price hike. As you said that early March,

Congratulations on a good set of numbers. Sir, my first question is the production, I was just trying to align the numbers. The production is down by about 7%. The sales is up by 12%. Is it fair to assume and interpret that there was a lot of finished goods inventory lying with you earlier, which was ready, which you sold off in March? And going forward, with that inventory liquidation behind us, our sales would be more in line with our production. Is that the right way to look at it?

Rishi Kajaria

So you're right. First, the inventory has gone down because of the shutdown of Morbi. Our inventory has gone down. Secondly, going forward, currently, all our plants are running at full production. So with a combination of our own plants running at full production and our stocks, we'll be able to service all the sales orders and outsourcing as well. Outsourcing is still a little problem because as we just said that at Morbi a lot of plants are still shut down. But we have enough stocks and our plants are running at full capacity to service the market to do our numbers. Just as a follow-up. Wha

Congratulations for a very good number. Firstly, on the bathware side, this INR50 crores buyout of the key investor, is it for the entire 15% stake or is it lower?

Sanjeev Agarwal

It's for the entire 15% stake. See, they invested $10 million 8 years back. So we bought the entire stake for INR50 crores by mutual discussion and negotiation. Got it, Sanjeev-ji. The second question on the cost side. You obviously mentioned that 18%, 19% EBITDA margin is achievable next year. But when I look at this year, there have been lot of cost-saving efforts which you have made. This staff cost of INR530 crores for fiscal '26, the number looks like stabilized at INR130 crores per quarter. How should we look at this cost going forward for the other expenditure and staff cost? Sorry, wha

A couple of questions. Sir, first is if you could please help clarify, sir, Morbi will need an increase of 35%. I think you said INR20 and then INR27. But sir, you also said initially that 16% to 17% price increase in West and ours will be in similar lines. So I just wanted to understand the timelines for both the numbers?

Ashok Kajaria

You see what you have not understood. Morbi per se was selling a product, let's say, for INR20 a square feet, that's a 4 feet by 2 feet price, right? Today, as far as they are concerned, their costs have gone up by 35% because of increased price of gas. So their prices have gone up from INR20 to INR27 or INR28 depending on the customer. As far as Kajaria is concerned, I was already selling at a higher price. So my price increase is only 15%, 16%, which covers the cost of that. So that is what the scenario is. If somebody supplies you from Morbi, he was earlier supplying you at INR20. Today the

Sir, my first question is regarding the tiles production. So if we see it has gone down by 7.5% in March quarter, but you have mentioned that all of our plants are currently operating at full capacity. So just wanted to confirm from you that whether our tiles production volume is not likely to get impacted in Q1 as we have seen in Q4?

Rishi Kajaria

So the tile production was down by 7% in March quarter. But because March -- shut in Morbi plants. Now as I said, from 16th April, all our plants are running at full capacity even the Morbi plants. Okay. So like on a Y-o-Y basis, we can see some bit of a decline in our production in the current June quarter. Is it correct, sir? Because we have started the plant from 16th of April? Correct. Correct. Okay. And sir, second thing, sir, like you have mentioned that many plants in Morbi are still shut. So whether our understanding is correct that outsourced sales volume for us might get impacted in

Congratulations for a great set of numbers. I just wanted to continue from the previous question on propane. So while we understand that in the recent times, the propane is not allowed. But when the expectations are that Morbi is going to get back the production line? What is your sense? Is it going to be like a permanent shift to natural gas and propane not being allowed to Morbi even for the long term? Is that a supply shift that you are assuming or when things normalize, then they might get back and shift back to propane?

Chetan Kajaria

See, how can we say that right now about propane? Also, the propane price is INR160, and it depends on the war situation. So right now, household cooking and fertilizers are more the priority sector for the government to give propane to. So it's a very fluid sector which we cannot comment upon because the price was very high of propane. No, I wanted to get a sense because you are there closer to the industry. What is the inner circles indicating? Like government is serious about making a permanent shift to natural gas or things can go back to propane in the long-term point of view is what I'm

Congratulations on a good set of numbers. Sir, just how much was the ad spend this year in FY '26, sir?

Sanjeev Agarwal

It was around I think INR90 crores to INR100 crores in the whole last year. We did it less as compared to the previous year because we did very hard negotiation. And some -- this year, we are going to do much, much higher ad spend. Our new TVC has come. So we are just in the process of making plan on many, many channels or regional channels and others. So this year, the ad spend may be 40% to 50% may be higher than what we spent in the... We made a much more aggressive ad spend this year. Okay. And second thing is, sir, the salary hikes, which last year was not given to employees, as you had m

Thanks a lot. I think very good questions came out. And on behalf of all of us. But also, I would like to add 1 or 2 statements. I think great effort has been done by Chetan and Rishi as a team after unification. I think they have done lot of work in the last financial year along supported by Kartik in adhesive. I must say that it's been a tremendous effort by these 3 people in taking the company to these heights and I'm very positive that going forward, the results will be even better. A lot of good questions came, and we are trying to do our best to reply them in the right.

Rishi Kajaria

And also just to apprise you guys, we have kept a lot of good senior people in the company. A new CHRO has joined. A Chief Marketing Officer joined for the entire branding of the company. A new Chief Digital Officer has joined to take over the technology part of the company. Even for Kerovit, Kerovit as a brand has been struggling for a while, but there also we've got a couple of very senior people. A Chief Business Officer to look after the sales and an adviser who is handing the factory, both veterans of the industry. We've also got a senior purchase guy. So we've kept a lot of good people.

Speaking time

Ashok Kajaria

Sanjeev Agarwal

Rishi Kajaria

Moderator

Chetan Kajaria

Sneha Talreja

Rahul Agarwal

Utkarsh Nopany

Saurabh Jain

Keshav Lahoti

Opening remarks

Girish Choudhary

Thanks, Yousuf. Good evening, everyone. Thanks for joining. We have with us the senior management team of Kajaria Ceramics, including Mr. Ashok Kajaria, Chairman; Mr. Chetan Kajaria, Vice Chairman; Mr. Rishi Kajaria, Managing Director; Mr. Karthik Kajaria, Head, Adhesive Division; Mr. Sanjeev Agarwal, CFO; and Mr. Parveen Gupta, VP Finance. I would request Mr. Kajaria to start with the initial remarks, post which we will have a Q&A session. Over to you, Ashokji.

Ashok Kajaria

Thank you, Girish. Good evening, everyone. It gives me great pleasure to welcome you to the quarter 4 F '26 earnings conference call of Kajaria Ceramics Limited. And as already said, joining me on this conference call is the senior management team of Kajaria Ceramics. I'm pleased to inform that this quarter we achieved a volume growth of 11%. This is the result of several efforts made towards unification of sales. During the first 9 months, this unification meant realignment of inventory across channels, manpower alignment and as a result, resulted into flattish growth. After which, we experienced good momentum in demand since January '26, which was a result of efforts made by us in the first 9 months. The production has fallen by 7% during the quarter due to shutdown of our Morbi plants in March, which have started from 16th of this month. In quarter 4 '26, our consolidated revenue increased by 12% to INR1,373 crores compared to the corresponding quarter last year. EBITDA margin for q

Sanjeev Agarwal

This is Sanjeev Agarwal, CFO. I would just like to say that in our presentation in Slide number 9, the inventory figure has been interchanged to debtors inadvertently. We have uploaded the revised presentation to the stock exchange and to our website also. So please read inventory figure as debtors and debtor figure as inventory.

Ashok Kajaria

With this, I take this opportunity of thanking you all for joining us today. Over to moderator for Q&A, please. Thank you.

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