Pokarna Limited , a leading quartz surface manufacturer, recently held its Q1 earnings conference call, revealing its strategies to navigate the challenging business environment, particularly in light of new US tariffs. Chairman Gautam Chand Jain highlighted the company's efforts to diversify its geographic presence and strengthen its product portfolio amidst market uncertainties.

US Tariff Impact and Market Dynamics

The company faces a significant challenge with the recent increase in US tariffs on quartz surfaces from India. Effective August 7, the tariff rate has risen to 25.00% from the previous 10.00%. This development has created uncertainty among customers, particularly in the United States, leading to deferred large-scale home improvement projects and a preference for lower-cost options.

Jain stated, "We anticipate this period of uncertainty will extend until a definitive tariff resolution is reached. Until the situation becomes more certain, we remain agile to respond to evolving circumstances."

Geographic Diversification

In response to the US market challenges, Pokarna is actively diversifying its geographic presence. The company reported encouraging demand from non-US markets, including the Czech Republic, Canada, France, Mexico, and Russia. These regions have been gradually increasing their contributions to Pokarna's revenue.

Domestic Market Expansion

On the domestic front, Pokarna is set to open an Experience Center in Hyderabad within the next six months. This initiative aims to strengthen the company's brand visibility and customer engagement in the Indian market, while also serving as a showcase for international customers visiting India.

Product Innovation and Capacity Expansion

Pokarna remains committed to product innovation and expanding its offerings. The company expects its KREOS product line to begin contributing from the current fiscal year, introducing a range of design-led premium offerings. Additionally, initial contributions from the Chromia line are anticipated during this year.

Jain announced, "New expansion capacity is expected to add approximately Rs. 500.00 crore in additional turnover when fully operational, with production starting in financial year 2026-27."

Financial Strategy and Customer Relations

While specific financial details were not disclosed, the company emphasized its focus on maintaining margins through product innovation and quality improvements. Pokarna plans to revisit pricing structures with customers based on the evolving tariff situation while continuing to prioritize product innovation and customer retention.

Jain assured investors, "We remain firmly focused on delivering shareholder value through strong demand capture, disciplined execution, and proactive risk management."

Outlook

Despite the external uncertainties, particularly surrounding US tariffs, Pokarna Limited maintains a cautiously optimistic outlook. The company's strategy involves balancing customer relationships, product innovation, and geographic diversification to navigate the challenging market conditions.

As negotiations between India and the US continue, Pokarna anticipates more clarity on the tariff situation in the coming months. The company remains committed to its expansion plans and product development initiatives, viewing the current challenges as an opportunity to strengthen its global market position and operational efficiency.

Pokarna Limited , India's largest exporter of premium quartz surfaces, is implementing a strategic approach to navigate global market challenges, according to the company's latest investor presentation for Q1 FY26.

Strategic Focus on Premium Designs and Raw Material Security

The company is concentrating on premium designs and securing raw materials to maintain its competitive edge in the global market. This strategy is particularly crucial as Pokarna faces demand issues and uncertainty regarding U.S. tariffs, which have been disrupting the entire value chain.

Expansion of Technology-Driven Quartz Exports

Pokarna is expanding its technology-driven quartz exports, leveraging its state-of-the-art manufacturing facilities. The company operates two units utilizing the advanced Bretonstone System from Breton, Italy, combining decades of expertise with innovation, technology, and design to stay at the forefront of the industry.

Navigating Macroeconomic Challenges

The company acknowledges a challenging business environment, with persistent high interest rates and uncertainty surrounding tariffs and immigration policies exerting pressure on demand in the U.S. home improvement sector. Big-ticket home improvement projects, including kitchen and bath remodeling, are being put on hold as customers prioritize budget-conscious projects.

Addressing Export Pricing Pressure

Pokarna is facing intensifying export pricing pressure due to underutilized capacities in India and South East Asia. This has led to newer players aggressively undercutting prices in the U.S. market, creating severe downward pressure on average selling prices, especially in mid- to lower-tier product categories.

Balancing Stability with Strategic Flexibility

Despite these challenges, Pokarna remains focused on long-term value through consistency, quality, and design differentiation. The company continues to actively support its U.S. customers in navigating cost pressures, policy shifts, and evolving market conditions. While maintaining pricing discipline and service reliability, Pokarna remains open to volume opportunities that align with strategic relationships or enhance capacity utilization.

Financial Performance

For Q1 FY26, Pokarna reported the following consolidated financial results:

The company's revenue declined by 11.96% year-over-year, while maintaining stable EBITDA and net profit margins at 34.00% and 17.00% respectively.

Cautious Outlook

With continued economic uncertainty, evolving tariffs, and increasing price competition in the U.S., Pokarna is preparing for prolonged headwinds and maintains a very cautious outlook. The company's strategic focus on premium designs, technological innovation, and long-term value creation aims to position it favorably once market conditions improve.

As Pokarna navigates these global challenges, its commitment to quality, innovation, and strategic flexibility will be crucial in maintaining its position as a leader in the premium quartz surfaces market.