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Kajaria Ceramics Ltd

| Audited Standalone Financial Results for the Quarter and Year Ended March 31, 2026

Report Source

⬤30th Apr 26

Summary : Kajaria Ceramics reported strong FY26 results, approved capacity expansion, share buyback, and increased dividends, despite minor operational challenges.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Cost of materials consumed: INR 992.26 Crores (FY26 Consolidated).
  2. Purchases of stock-in-trade: INR 1,005.03 Crores (FY26 Consolidated).
  3. Employee benefits expense: INR 529.86 Crores (FY26 Consolidated).
  4. Finance costs: INR 22.63 Crores (FY26 Consolidated).
  5. Depreciation and amortisation expenses: INR 169.37 Crores (FY26 Consolidated).
  6. Power and fuel: INR 888.51 Crores (FY26 Consolidated).
  7. Other expenses: INR 479.55 Crores (FY26 Consolidated).
  8. Consolidated Revenue from operations: INR 4,830.36 Crores (FY26).
  9. Standalone Revenue from operations: INR 4,374.31 Crores (FY26).
  10. Segment Revenue - Tiles: INR 4,280.29 Crores (FY26 Consolidated).
  11. Segment Revenue - Others: INR 550.07 Crores (FY26 Consolidated).
  12. Consolidated Net cash generated from operating activities: INR 663.67 Crores (FY26).
  13. Consolidated Net cash used in investing activities: (INR 336.37) Crores (FY26).
  14. Consolidated Net cash used in financing activities: (INR 290.23) Crores (FY26).
  15. Consolidated Net increase in cash and cash equivalents: INR 37.07 Crores (FY26).
  16. Consolidated Cash and cash equivalents at year end: INR 55.94 Crores (FY26).
  17. Consolidated Total Assets: INR 4,029.21 Crores (as of March 31, 2026).
  18. Consolidated Equity Share Capital: INR 15.93 Crores (as of March 31, 2026).
  19. Consolidated Other Equity: INR 3,049.65 Crores (as of March 31, 2026).
  20. Consolidated Non-current liabilities: INR 231.77 Crores (as of March 31, 2026).
  21. Consolidated Current liabilities: INR 666.96 Crores (as of March 31, 2026).
  22. Subscription of preference shares in Kerovit Global Private Limited (step-down wholly-owned subsidiary).
  23. Acquisition of CCPS in Kajaria Bathware Private Limited (wholly-owned subsidiary) from an external investor.
  24. Loan given to Kajaria International DMCC (WOS) for JV.
  25. Both standalone and consolidated financial results are presented and audited.
  26. Consolidated results include subsidiaries and joint ventures.

Corporate Overview

  1. India (southern market focus for expansion)
  2. International subsidiaries and joint ventures
  3. Financial implications from new Labour Codes (provision of INR 19.43 Crores).
  4. Fraud incident of INR 20.65 Crores in Kerovit Global Private Limited subsidiary.
  5. Impairment loss of INR 4.78 Crores on loan to Kajaria International DMCC JV.
  6. Discontinued operations of Kajaria Plywood Private Limited due to losses.
  7. Manufacturing and selling tiles.
  8. Manufacturing sanitaryware products through subsidiaries.
  9. Manufacturing bathware products through subsidiaries.
  10. Other business segments include adhesive and sanitaryware.
  11. Factual and formal, reporting on board decisions and financial outcomes.
  12. Proactive in addressing growth opportunities and shareholder returns.
  13. Tiles: INR 4,280.29 Crores (FY26 Consolidated)
  14. Others (adhesive, bathware, sanitaryware): INR 550.07 Crores (FY26 Consolidated)
  15. Existing Glazed Vitrified Tiles capacity: 8.80 MSM per annum (Srikalahasti)
  16. Existing capacity utilization: 100% (Srikalahasti)
  17. Proposed Glazed Vitrified Tiles capacity addition: 10 MSM per annum (Srikalahasti)
  18. Expansion of Srikalahasti manufacturing facility by 10 MSM for Glazed Vitrified Tiles.
  19. Investment of INR 210 Crores for Srikalahasti expansion, to be completed by March 2027.
  20. Financing for expansion through internal accruals.

Risk Factors

  1. New Labour Codes impact financials.
  2. Fraud incident in subsidiary reported.
  3. Impairment loss on subsidiary loan.
  4. Discontinued operations affect overall performance.

Key Drivers

  1. Capacity expansion to meet southern demand.
  2. Share buyback enhances shareholder value.
  3. Increased dividend payout for shareholders.
  4. Strategic investments in key subsidiaries.

Auditor’s Report

  1. Unmodified opinion on standalone financial results.
  2. Unmodified opinion on consolidated financial results.
  3. Reliance on other auditors for financial statements of eight subsidiaries and three joint ventures in consolidated report.

Board Commentary

  1. Appointment of M/s Ernst & Young LLP as Internal Auditors for FY26-27.
  2. Recommended final dividend of INR 6/- per equity share for FY26.
  3. Total dividend for FY26 is INR 14/- per share (including interim dividend of INR 8/-).
  4. Previous year total dividend was INR 9/- per share.
  5. Impact of new Labour Codes on gratuity and leave liability.
  6. Financial loss due to fraud in a subsidiary.
  7. Impairment of loans given to joint ventures.
  8. New Labour Codes effective from November 21, 2025, with estimated financial implications.
  9. Fraud incident in Kerovit Global Private Limited, a complaint filed with Delhi Police.
  10. Approved expansion of Srikalahasti facility with INR 210 Crores investment.
  11. Approved subscription of INR 45 Crores in preference shares of Kerovit Global Private Limited.
  12. Approved acquisition of INR 50 Crores in CCPS of Kajaria Bathware Private Limited.
  13. Approved buyback of equity shares up to INR 296.70 Crores.

Corporate Governance

  1. Audit Committee reviewed standalone and consolidated financial results.
  2. Buyback Committee constituted to manage the share buyback process.

Management Discussion & Analysis

Future Strategy

  1. Increase manufacturing capacity for Glazed Vitrified Tiles in Srikalahasti.
  2. Invest in Kerovit Global Private Limited to improve its debt-equity ratio.
  3. Acquire Compulsorily Convertible Preference Shares of Kajaria Bathware Private Limited to provide investor exit.
  4. Execute share buyback program to optimize capital structure.

Operational Focus Areas

  1. Monitoring and evaluating impact of new Labour Codes.
  2. Addressing and investigating fraud incident in subsidiary.
  3. Managing impairment losses on international joint venture loans.

Performance Drivers

  1. Capacity expansion to cater to growing southern market demand.
  2. Strategic investments in subsidiaries to improve debt-equity ratio and provide investor exit.
  3. Share buyback to enhance shareholder value and return capital.

Risk Control Measures

  1. Monitoring developments and clarifying rules for Labour Codes.
  2. Filing police complaint and recording net loss for fraud incident.
  3. Recording impairment loss and additional provisions for loans.

Critical Risks

  1. Uncertainty regarding full impact of new Labour Codes.
  2. Financial and reputational risks from fraud in subsidiary.
  3. Impairment losses on investments in joint ventures.
  4. Challenges from discontinued operations of a subsidiary.
Kajaria Ceramics Ltd (KAJARIACER) Quarterly Report Analysis & Insights | Dhanarthi