Kajaria Ceramics Limited (KAJARIACER)
Large CapConsumer stocks · Large cap · NSE
Kajaria Ceramics is India's largest manufacturer of ceramic/vitrified tiles, with an annual capacity of 87.80 mn. sq. meters across nine plants. The company also has operations in sanitaryware, faucets, and tile adhesives, expanding its presence in the building materials segment.
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, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
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 30 Jun 2026
Excellent · 90/100Rev +20% YoY · PAT +55% YoY · margin expansion · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,328 Cr | +20.4% | -3.3% |
| EBITDA | ₹260 Cr | +39.0% | -1.1% |
| Operating margin | 20.0% | +300 bps | +100 bps |
| PAT | ₹171 Cr | +55.5% | +8.9% |
| PAT margin | 12.9% | +291 bps | +145 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Kajaria Ceramics reported strong Q4 FY26 results with consolidated revenue up 12% YoY to Rs. 1373 crores, driven by 11% volume growth. EBITDA margin significantly expanded to 19.19% from 10.01% YoY, reflecting cost optimization and improved realizations.
The company demonstrated robust Q4 FY26 performance, reversing earlier flattish growth with 11% volume expansion and significant margin improvement. Strategic capacity additions and diversification into bathware and adhesives are positive. However, the closure of UK operations and reduced capacity in one subsidiary warrant monitoring.
Revenue by Product/Segment (Q4 FY26)
Latest issuer-disclosed distribution across 6 reported categories.
Tile Volume Growth
Achieved 11% volume growth in Q4 FY26, driven by efforts towards unification of sales and demand momentum since January 2026.
Expansion in Glazed Vitrified Tiles
Approved expansion of Srikalahasti facility by 10 MSM capacity for Glazed Vitrified Tiles, expected by March 2027.
Adhesive Business Expansion
Acquired 100% of Kajaria Adhesive Private Limited (KAPL) and expects a new 9000 MT/month unit in Erod, Tamil Nadu, to be operational in Q2 FY27.
Bathware Segment Consolidation
Board approved acquisition of remaining 15% stake in Kajaria Bathware (P) Ltd. for Rs. 50 crore, consolidating ownership.
Glazed Vitrified Tiles Capacity
Expansion of Srikalahasti manufacturing facility by 10 MSM capacity for Glazed Vitrified Tiles, at approx. ₹210 crore, expected by March 2027.
Adhesive Manufacturing Unit
New manufacturing unit for tile adhesives at Erod, Tamil Nadu, with 9000 MT per month capacity, expected to be operational in Q2 FY27.
Improved Sales Realization & Cost Optimization
Margin improvement is a result of cost optimization and some improvement in sales realization along with all-round efficiencies.
Demand Momentum
Experienced good momentum in demand since January 2026, following sales unification efforts in the first 9 months.
International Market Challenges
Closed UK showroom operations of Kajaria International DMCC due to high running expenses and difficulty in making profit in short to medium term.
Initial Sales Unification Impact
Unification of sales efforts in the first 9 months of FY26 resulted in flattish growth due to realignment of inventory across channels.
Capacity Reduction in Subsidiary
Kajaria Infinity Pvt. Ltd. reduced its annual capacity of glazed vitrified tiles from 5.70 MSM to 2.70 MSM.
Execution Risk for New Capacities
New 10 MSM GVT capacity at Srikalahasti and 9000 MT/month adhesive plant are expected by March 2027 and Q2 FY27 respectively; timely commissioning and ramp-up are crucial.
Subsidiary Performance & Utilization
Kerovit Global (high-end sanitaryware) operated at 59% utilization in Q4 FY26, indicating potential for further ramp-up or demand challenges.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
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.
Q4 FY26 results show strong YoY growth in revenue, volumes, and profitability, indicating a recovery from earlier periods. QoQ progression of EBITDA margin highlights sequential operational improvements and demand momentum since January 2026.
Volume Growth (Consolidated Tiles)
Q4 FY26 sales volume (MSM) increased to 33.51 from 30.11 in Q4 FY25, representing 11% growth. FY26 sales volume was 118.52 MSM vs 114.69 MSM in FY25.
EBITDA Margin
Consolidated EBITDA margin for Q4 FY26 stood at 19.19%, significantly up from 10.01% in Q4 FY25. This is the highest quarterly margin in FY26.
Capacity Utilization - Vitrified Tiles
Kajaria Vitrified operated at 99% in Q4 FY26. Kajaria Infinity operated at 97% in Q4 FY26. Kajaria Surfaces operated at 81% in Q4 FY26.
Capacity Utilization - Sanitaryware/Faucets
Kajaria Sanitaryware operated at 70% in Q4 FY26. Kerovit Global (high-end) operated at 59% in Q4 FY26. Faucet plant operated at 89% in Q4 FY26.
Optimistic Outlook
Management remains optimistic about the current year’s performance and beyond, stating 'The journey has just begun'.
Shareholder Value Enhancement
Announced a buyback of equity shares (subject to approval), reflecting strong financial position and confidence in long-term fundamentals.
Focus on Efficiencies
Margin improvement is attributed to cost optimization, improved sales realization, and all-round efficiencies in production, sales, and supply chain.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Tile Volume Growth | 11% in Q4 FY26 | Sustained double-digit volume growth in subsequent quarters, especially from own manufacturing and subsidiaries. |
| EBITDA Margin | 19.19% in Q4 FY26 | Maintenance or further improvement in margins, indicating continued success in cost optimization and pricing power. |
| New Capacity Commissioning & Ramp-up | Srikalahasti GVT (10 MSM) by Mar 2027; Erod Adhesive (9000 MT/month) by Q2 FY27 | Timely commissioning and rapid utilization ramp-up of new tile and adhesive capacities. |
| Sanitaryware & Faucet Utilization | KSPL 70%, KGPL 59%, Faucet 89% in Q4 FY26 | Improvement in utilization rates, particularly for the high-end Kerovit Global plant, indicating stronger demand for premium products. |
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
65Bullishfull bull SMA stack · SMA20 +1.2% / mo · MACD + · near 52W high
Technical chart
KAJARIACERdaily · 1Y · AUTO+31.8%Daily technical trend read
Bullish setupTrend is constructive — long-term uptrend intact. RSI 55.
- Price > SMA20 > SMA50 > SMA200 — full bullish stack.
- SMA20 rising (~1.2% over last month) — short-term momentum positive.
- RSI(14) at 55 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 4% off 52W high · 43% 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.
Relative Strength & Trend Stage
- Price is 12.0% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +3.5%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 51 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 51 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
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 13.8%.
- Quality contributes 15/20 to the score.
Main drags
- Penalty bucket subtracts 1 points.
- Valuation is weaker at 4/30; verify the latest quarterly trend.
- Growth is weaker at 10/25; 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: -1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
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 83rd percentile of the scored universe and 86th 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: 86th pctile, median 66 · Large: 65th pctile, median 73
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 1.7%.
- ▸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.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 33.80
- P/B
- 6.46
- EV/EBITDA
- 17.82
- Market Cap
- 19479.00Cr
Profitability
- ROE
- 17.90%
- ROCE
- 23.40%
- ROA
- 13.61%
- Dividend Y
- 1.13%
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
- 42.64×
- Altman Z
- 9.36
- Book Value
- 192.00
Cash Flow
- FCF Yield
- 1.68%
- FCF Positive Y
- 11/5
- OCF
- 664.00 Cr
- EPS TTM
- 34.28
Shareholding
- Promoter Hold
- 47.69%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 87%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Consumer, ranked by similarity
Peers
Business-comparable names in Consumer, ranked by similarity
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.