Kajaria Ceramics , a leading player in the Indian ceramics industry, has reported a significant improvement in its financial performance for the second quarter, despite modest revenue growth. The company's strategic initiatives and cost optimization efforts have yielded positive results, particularly in terms of profitability and operational efficiency.

Financial Highlights

Kajaria Ceramics reported a consolidated revenue of ₹1,186.00 crores in Q2, marking a marginal 1.00% year-on-year growth. However, the company achieved significant margin expansion, with EBITDA improving to 17.94%, up 447 basis points year-on-year and 122 basis points sequentially. The most notable improvement was in the company's Profit After Tax (PAT), which surged by 58.00% to ₹133.00 crores, compared to ₹84.00 crores in the previous year's corresponding quarter.

Segment Performance

While the tiles segment remained flat at ₹1,051.00 crores, the bathware segment showed promising growth of 14.00%, reaching ₹102.00 crores. The adhesives segment demonstrated substantial growth, with revenue increasing to ₹32.00 crores from ₹18.00 crores in the previous year.

Strategic Initiatives and Operational Improvements

Kajaria Ceramics is undergoing a significant organizational transformation to enhance its market position and operational efficiency. Key initiatives include:

1. Sales Unification: Streamlining the sales process across segments.
2. Cost Optimization:
   • Packaging reengineering, saving ₹30-35 crores annually
   • Workforce optimization, reducing headcount by 250
   • Improved procurement processes
3. Working Capital Management: Reduced working capital days from 58 to 56
4. Market Share Enhancement: Appointed management consultants to develop strategies
5. Architect and Influencer Engagement: Established a dedicated team

Management Outlook

The management of Kajaria Ceramics maintains a positive outlook for the second half of the fiscal year, expecting volume growth to pick up. They aim to maintain a retail-to-project mix of approximately 70:30, indicating a continued focus on the retail segment while also catering to project-based demands.

The company's strategic initiatives and cost optimization efforts have clearly paid off in Q2, as evidenced by the significant improvement in profitability despite modest revenue growth. As Kajaria Ceramics continues to implement these measures and adapt to market dynamics, investors and industry observers will be keen to see if this positive momentum can be sustained in the coming quarters.

Kajaria Ceramics Limited, India's leading manufacturer of ceramic and vitrified tiles, has announced its financial results for the second quarter of fiscal year 2025-26, showcasing robust performance and shareholder returns.

Financial Highlights

For the quarter ended September 30, 2025, Kajaria Ceramics reported:

• Consolidated revenue from operations of ₹1,186.01 crores, up from ₹1,161.81 crores in the same quarter last year
• Profit before tax from continuing operations of ₹181.74 crores, compared to ₹126.70 crores in Q2 FY25
• Net profit for the period of ₹133.98 crores, a significant increase from ₹85.54 crores in the corresponding quarter of the previous year

Interim Dividend Declared

The Board of Directors has declared an interim dividend of ₹8 per equity share (face value of ₹1 each) for the financial year 2025-26. The record date for determining shareholder eligibility is set for Friday, October 24, 2025, with the dividend payment to be made on or before November 14, 2025.

Segment Performance

The tiles segment, which is the company's primary business, generated revenue of ₹1,083.62 crores for the quarter, contributing significantly to the overall performance. The 'Others' segment, which includes bathware and sanitaryware business, contributed ₹102.39 crores to the total revenue.

Operational Highlights

• The company maintains a strong balance sheet with total assets of ₹3,969.05 crores as of September 30, 2025
• Kajaria Ceramics continues to focus on its core business while also expanding its presence in the bathware and sanitaryware segments
• The company has granted 1,35,000 Stock Options to eligible employees under its ESOP Scheme 2015, with an exercise price of ₹800 per share

Export Industry Outlook

Kajaria Ceramics expects the export industry revenue to reach approximately ₹18,000 crores this year, indicating positive growth prospects for the sector.

Dividend Policy

The company has maintained its dividend policy of distributing 40-50% of profits to shareholders, demonstrating its commitment to delivering value to investors.

Kajaria Ceramics' strong quarterly performance, coupled with its strategic initiatives and shareholder-friendly policies, positions the company well in the competitive tiles and sanitaryware market. The declared interim dividend further underscores the company's financial health and its focus on rewarding shareholders.