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.

Pokarna Limited , a leading player in the granite and quartz surfaces industry, has announced its unaudited financial results for the first quarter, along with a significant board appointment. The company faced challenges in its standalone operations but showed resilience in its consolidated performance.

Financial Performance

On a standalone basis, Pokarna Limited reported a decline in revenue from operations for Q1. The company's standalone revenue stood at Rs 487.16 lakhs, down from Rs 598.47 lakhs in the corresponding quarter of the previous year. The standalone net loss narrowed to Rs 225.76 lakhs, compared to a loss of Rs 368.13 lakhs in Q1 of the previous year.

However, the consolidated results paint a more positive picture:

Despite a slight dip in consolidated revenue and profit compared to the same quarter last year, Pokarna Limited maintained strong profitability, with a net profit margin of approximately 16.55% for Q1.

Segment Performance

The company operates in two primary segments: Granites and Quartz Surfaces. The Quartz Surfaces segment continued to be the major revenue driver:

• Granites segment revenue: Rs 487.16 lakhs
• Quartz Surfaces segment revenue: Rs 16,609.01 lakhs

The Quartz Surfaces segment demonstrated robust performance, contributing significantly to the company's overall revenue and profitability.

Board Appointment

In a strategic move to strengthen its corporate governance, Pokarna Limited announced the appointment of Mr. Gautam Damodar Sawang as an Additional Non-Executive Independent Director for a term of three years, subject to shareholder approval. Mr. Sawang, a retired IPS officer with 38 years of distinguished public service, brings a wealth of experience in leadership, governance, and strategic management.

Key highlights of Mr. Sawang's profile include:

• Former Director General of Police of Andhra Pradesh State (2019-2022)
• Chairman of the AP State Public Service Commission (2022-2024)
• International experience as Police Commissioner of United Nations Police (2008-2012)

His appointment is expected to bring valuable insights into compliance, risk management, and ethical leadership to Pokarna Limited's board.

Dividend and AGM Announcement

The Board of Directors has recommended a final dividend of Rs 0.60 per equity share (30%) for the financial year, subject to shareholder approval at the upcoming Annual General Meeting (AGM). The 34th AGM is scheduled for September 10, to be held through video conferencing.

Outlook

While Pokarna Limited faces challenges in its standalone granite business, the strong performance of its Quartz Surfaces segment through its subsidiary, Pokarna Engineered Stone Limited, continues to drive overall growth. The appointment of Mr. Gautam Damodar Sawang as an independent director signals the company's commitment to enhancing its governance structure and bringing diverse perspectives to its strategic decision-making process.

Investors and stakeholders will be watching closely to see how these developments impact Pokarna Limited's performance in the coming quarters, particularly in light of the evolving market dynamics in the granite and engineered stone sectors.