Kajaria Ceramics Q3 FY26 Earnings Call Transcript Released
Kajaria Ceramics Q3 FY26 consolidated revenue was flat at ₹1,168 crores. EBITDA margin improved to 17.2% from 12.8% YoY. PAT grew 13% to ₹88 crores. The company is focused on transformation initiatives, SKU reduction, and dealer unification. Positive growth is expected from Q4 FY26 onwards.
The transcript provides detailed insights into the company's financial performance, strategic initiatives like 'Kajaria 2.0', and management's outlook. This information is crucial for investors to understand the company's current standing and future prospects, thus having a medium impact.
The announcement is a transcript of a conference call. While it details financial performance and strategic initiatives, it does not contain new, material information that would significantly alter the company's outlook. The financial results are mixed, with flat revenue but improved margins and PAT growth.
Kajaria Ceramics Limited has released the transcript of its Q3 FY26 earnings conference call, held on January 30, 2026. The call featured management including Chairman Mr. Ashok Kajaria, Vice Chairman Mr. Chetan Kajaria, and Managing Director Mr. Rishi Kajaria.
During the call, management reported that consolidated revenue for Q3 FY26 was flat year-on-year at ₹1,168 crores, attributed to no growth in tile volumes and the absence of Ply sales due to the closure of that division. However, EBITDA margin improved to 17.2% from 12.8% in the corresponding quarter last year, though it saw a sequential drop of 74 basis points due to lower sales realization from discounts offered to reduce SKUs. The company converted a unit at its Gailpur plant from ceramic floor tiles to glazed vitrified tiles to focus on value-added products.
The Tiles segment revenue remained flat at ₹1,030 crores, while the Bathware segment grew 9% to ₹103 crores. Revenue from adhesives increased to ₹35 crores. Profit Before Tax (PBT) grew by 49% to ₹165 crores, and Profit After Tax (PAT) grew by 13% to ₹88 crores, partly due to exceptional items adjustment. Working capital days increased to 64 days as of December 2025.
Management discussed the ongoing dealer churning and SKU reduction efforts as part of their 'Kajaria 2.0' transformation, aiming for increased efficiency and cross-selling. They anticipate margins to remain between 17% to 18%, with a focus on increasing sales. Ad spend for Q3 was around ₹24 crores, with plans to increase it in Q4. The company is also revisiting processes following a fraud incident and has appointed Ernst & Young for a forensic audit.
Regarding future outlook, management expressed optimism for growth from Q4 FY26 onwards, expecting positive growth in both tiles and sanitaryware, with double-digit volume growth anticipated for sanitaryware. They are also focusing on the architect and interior designer community and government sector for sales. The company does not foresee major capex in the next 1-2 years and may consider increasing dividends. Price hikes of 8-12% were implemented for faucet products from January 19, 2026, with a planned hike for sanitaryware from March 1. The company is working on improving tile realization through value-added products and strategic focus on architects and interior designers. Regarding joint ventures, the company has received approval to acquire a 10% stake in one JV, with the long-term aim of making it a wholly-owned subsidiary for greater efficiency and tax benefits. The unification of pricing and discount structures across ceramic, GVT, and PVT segments was completed effective January 1, 2026, to simplify dealer operations.
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