KAJARIACER
Large CapKajaria Ceramics Limited
Consumer
Kajaria Ceramics Limited is an Indian manufacturer of ceramic and vitrified tiles, bathware, and adhesives. The company operates multi-locational plants and leverages a mix of own production, JVs, and outsourcing to serve the domestic market.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
high confidence · 9/14 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 90/100Rev +12% YoY · PAT +265% YoY · margin expansion · +18% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,373 Cr | +12.4% | +17.6% |
| EBITDA | ₹263 Cr | +90.6% | +31.5% |
| Operating margin | 19.0% | +800 bps | +200 bps |
| PAT | ₹157 Cr | +265.1% | +82.6% |
| PAT margin | 11.4% | +791 bps | +407 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY26 saw strong volume growth of 11% and consolidated revenue up 12% YoY, driven by unification efforts and Morbi plant shutdowns. EBITDA margin improved significantly to 19.19% from 10.01% YoY, aided by cost optimization and better realizations.
Kajaria delivered strong Q4 FY26 results with double-digit volume and revenue growth, and significant margin expansion. The company benefited from internal unification efforts and external disruptions in Morbi. While Q1 FY27 may see some outsourcing challenges, management expects continued positive momentum and margin stability, leveraging its multi-locational advantage and brand.
Revenue by Segment (Q4 FY26)
Latest issuer-disclosed distribution across 3 reported categories.
Unification of Sales Efforts
Volume growth is a result of several efforts made towards unification of sales, which created good momentum since January '26.
Multi-locational Plant Advantage
Kajaria and other players with multi-locational plants will have a great advantage as Morbi players face cost, labor, and cash flow distractions.
Market Share Gains from Morbi Disruption
Morbi plants' shutdowns and significant price hikes create a big vacuum, leading to a very positive scenario for organized players.
Strong Leadership Team
New CHRO, CMO, Chief Digital Officer, and senior people for Kerovit and purchase have joined, strengthening the team.
Morbi Industry Disruption
Huge distraction at Morbi players in terms of cost, labor, and cash flow, leading to a 35-40% price hike for them.
Domestic Market Demand
Demand is there, and tile is a small segment in real estate projects, so price increases won't stop construction. Domestic market is 'imported' (implies strong demand).
Gas Price Arbitrage (Biofuel)
Biofuel cost in the northern plant is about INR20 per SCM, significantly lower than natural gas prices, providing a cost advantage.
Increased Gas Prices
Gas prices have gone up quite a bit; North April price INR62.5, South INR81, West INR79, compared to Q4 prices.
Outsourcing Supply Uncertainty
Outsourcing partners is a question mark as many Morbi plants are still shut down or not running at full capacity.
Q1 Seasonality
Q1 historically is low in the industry and Kajaria.
Morbi Plant Resumption & Pricing
Uncertainty on how many Morbi plants will run properly and if they can sell at 35-40% higher prices.
Fluctuating Gas Prices & Supply
Gas prices are very fluctuating, and norms are changing daily by Government of India and GAIL due to war situation.
Export Market Challenges
Exports to Gulf are affected by war, with freight costs increasing from $300 to $4,000 for UAE.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The company explicitly compares Q4 FY26 results to Q4 FY25 for revenue, segment growth, EBITDA, PBT, and PAT. Q1 is historically weak, making YoY a more appropriate comparison for underlying business performance.
Volume Growth
Achieved a volume growth of 11% in Q4 FY26.
Consolidated Revenue Growth
Consolidated revenue increased by 12% to INR1,373 crores in Q4 FY26 compared to the corresponding quarter last year.
EBITDA Margin
EBITDA margin for Q4 FY26 stood at 19.19%, up from 10.01% in Q4 FY25.
Tiles Segment Revenue Growth
Tiles segment grew by 11% year-to-year at INR1,212 crores in Q4 FY26.
Optimistic Outlook
Remain optimistic about the current year's performance and beyond; the journey has just begun.
Margin Guidance
Confident that with the current scenario, we should be maintaining EBITDA margins between 18% to 19%.
Focus on Working Capital
Will continue to focus on reduction of our working capital cycle as we move forward.
No Volume Guidance
Decided not to give any volume guidance due to lack of control over outside atmosphere, but will perform in a positive manner.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margin | 19.19% (Q4 FY26) | Maintenance of 18-19% margin amidst rising input costs and competitive dynamics. |
| Outsourced Sales Volume | 32 million sq. meters (FY26), ~27-28% of materials from Morbi. | Normalization of outsourcing supply from Morbi and realignment of suppliers in Q1/Q2 FY27. |
| Morbi Plant Operations | Many plants still shut, uncertainty on how many will run from May 1st. | Number of Morbi plants resuming full production and their ability to sustain higher selling prices. |
| Ad Spend | INR90-100 crores (FY26) | Actual increase in ad spend (40-50% higher planned) and its impact on brand visibility and sales. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
The company will complete the implementation of the new vendor portal across all subsidiaries of Kajaria within 2 to 3 months.
Outcome check: OPM moved from 17.0% to average 19.0% (+2.0 pp).
The INR 150 crores of annualized cost savings achieved through Operation Manthan will continue and remain structured for all future years.
Outcome check: OPM moved from 17.0% to average 19.0% (+2.0 pp).
The fraud amount of approximately INR 20 crores will likely be shown as an exceptional expenditure in the financials.
There will be no further capex expenditure required for the new sanitary ware plant as it is already in production.
The company may conduct a forensic audit for the Kerovit Global subsidiary to investigate the vendor fraud.
Outcome check: OPM moved from 17.0% to average 19.0% (+2.0 pp).
The company will reduce costs further by identifying more areas of cost optimization beyond the INR 150 crores already achieved.
Outcome check: OPM moved from 17.0% to average 19.0% (+2.0 pp).
Trend score and candlestick chart
53NeutralSMA20 +11.7% / mo
Technical chart
KAJARIACERweekly · 1Y+3.7%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 52. Wait for confirmation.
- SMA20 rising (~10.5% over last month) — short-term momentum positive.
- RSI(14) at 52 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 18% off 52W high · 24% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 21.2%.
- Balance sheet contributes 12/15 to the score.
Main drags
- Valuation is weaker at 11/30; verify the latest quarterly trend.
- Growth is weaker at 10/25; verify the latest quarterly trend.
- Quality is weaker at 13/20; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Management has 89% delivered/partly-delivered outcomes on 9 checked claims, with 1 adverse claim outcome. It ranks around the 85th percentile of the scored universe and 84th percentile within Consumer. No major sub-score weakness stands out.
High Trust: 9/14 extracted management claims have outcome checks; 78% were fully delivered and 1 were partially delivered. 1 claim(s) were contradicted or failed.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Consumer: 84th pctile, median 67 · Large: 66th pctile, median 74
9/14 claims have outcome checks.
9/14 claims checked · 1 contradicted/failed claim
How to read this Trust Score
Healthy Trust · high confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1.9%.
- ▸11 years of positive FCF.
- ▸Debt/equity is 0.07.
Trust risks
- ▸2 older quarters in the 8-quarter window had PAT decline worse than 25% YoY.
Intrinsic value
Fundamentals
Valuation
- P/E
- 32.90
- P/B
- 5.60
- EV/EBITDA
- 16.78
- Market Cap
- 17119.00Cr
Profitability
- ROE
- 17.90%
- ROCE
- 23.30%
- ROA
- 12.09%
- Dividend Y
- 0.84%
Growth (CAGR)
- Revenue 5Y
- 12.00%
- EPS 5Y
- 11.00%
- Revenue 3Y
- 3.00%
- EPS 3Y
- 14.00%
Balance Sheet
- Debt/Equity
- 0.07
- Interest Coverage
- 37.61×
- Altman Z
- 9.24
- Book Value
- 192.00
Cash Flow
- FCF Yield
- 1.92%
- FCF Positive Y
- 11/5
- OCF
- 664.00 Cr
- EPS TTM
- 30.48
Shareholding
- Promoter Hold
- 47.69%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 45%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.