Kajaria Ceramics Posts 21% Profit Surge in Q1 Despite Flat Revenue
Kajaria Ceramics, India's largest tile manufacturer, reported a 21% increase in net profit to ₹108.98 crore for Q1 FY26, despite flat consolidated revenue of ₹1,104.33 crore. EBITDA grew by 11% to ₹184.63 crore, with improved margins. The tiles segment contributed ₹1,011.27 crore to revenue and ₹138.90 crore to profit. The company maintained a strong financial position with negative net debt of ₹515 crore. Management attributed the improved profitability to cost reduction efforts and operational optimizations amid soft market demand. Kajaria also granted 5,00,000 stock options to employees during the quarter.

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Kajaria Ceramics , India's largest manufacturer of ceramic and vitrified tiles, has reported a robust financial performance for the first quarter, marked by significant profit growth despite challenging market conditions.
Financial Highlights
Metric | Q1 FY26 | Q1 FY25 | Change |
---|---|---|---|
Consolidated revenue | ₹1,104.33 crore | ₹1,113.69 crore | Relatively flat |
Net profit | ₹108.98 crore | ₹89.82 crore | +21% |
EBITDA | ₹184.63 crore | ₹167.05 crore | +11% |
EBITDA margin | 16.72% | 15.00% | Improved |
Operational Performance
The company's tile segment, which forms the core of its business, reported revenue of ₹1,011.27 crore, contributing to the majority of the total revenue. The 'Others' segment, which includes bathware, sanitaryware, and plywood business, generated revenue of ₹91.47 crore.
Management Commentary
The company's management noted that overall market demand continued to remain soft during the quarter. However, Kajaria Ceramics managed to improve its profitability through focused cost reduction efforts, optimization of human resources, and other corrective measures.
Segment-wise Performance
- Tiles segment: Reported a profit of ₹138.90 crore
- Others segment: Contributed ₹4.32 crore to the profit
Balance Sheet Strength
Kajaria Ceramics maintains a strong financial position with a negative net debt of ₹515 crore as of June 30, 2025, indicating a cash-rich status.
Future Outlook
While the company faces challenges in terms of market demand, its focus on operational efficiency and cost management has yielded positive results. The management expressed confidence that their efforts will continue to drive efficiency improvements going forward.
Stock Options Grant
During the quarter, Kajaria Ceramics granted 5,00,000 stock options to eligible employees under its ESOP Scheme 2015. Each option entitles the holder to one equity share with a face value of ₹1 at an exercise price of ₹800.
Kajaria Ceramics' ability to enhance profitability amidst flat revenue growth demonstrates its resilience and effective management strategies in navigating challenging market conditions. As the company continues to focus on operational efficiency and cost optimization, it remains well-positioned to capitalize on any upturn in market demand in the coming quarters.
Historical Stock Returns for Kajaria Ceramics
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
+0.55% | +1.11% | +10.13% | +19.14% | -19.40% | +187.36% |