Kajaria Ceramics delivered a strong performance in Q4 FY26, with consolidated revenue rising 12% to ₹1,373 crores compared to the corresponding quarter last year. Profit after tax (PAT) surged to ₹136 crores from ₹43 crores in Q4 FY25, while EBITDA margin expanded sharply to 19.19% from 10.01% in the year-ago period. The results were driven by an 11% volume growth, cost optimisation initiatives, improved sales realisations, and significant disruption in the unorganised segment — particularly at Morbi — which benefited organised, multi-locational players like Kajaria. Global brokerage HSBC has also reiterated a Buy rating on the stock, raising its target price to ₹1,400 in response to the Q4 outperformance.

Q4 FY26 Financial Performance

The company's Q4 FY26 results reflected broad-based improvement across revenue, profitability, and working capital. Profit before tax (PBT), before share of profit from joint ventures, exceptional items, and tax, grew to ₹228 crores from ₹85 crores in Q4 FY25. The working capital cycle improved by 14 days to 51 days as of March 31, 2026, compared to 65 days as of December 31, 2025, primarily due to a decrease in inventory and receivables.

Segment-Wise Performance

All three business segments reported revenue growth in Q4 FY26. The Tiles segment remained the dominant contributor, while the Adhesives division recorded the sharpest growth, more than doubling its revenue year-on-year.

Morbi Disruption and Competitive Dynamics

Management attributed a significant portion of the Q4 volume momentum to disruption in the Morbi ceramics cluster, where a sharp increase in gas prices — from approximately ₹47–₹48 per SCM to around ₹84 per SCM — forced many unorganised players to shut down or curtail production. All Morbi plants were shut in March, with Kajaria's Morbi facilities restarting from April 16. Management noted that Morbi players have had to raise prices by 35%–40% to cover the increased fuel costs, narrowing the price gap with branded organised players. Volume growth was, however, consistent through January and February as well, with month-on-month growth of 8%–9% before the Morbi shutdown.

Kajaria's own plants are currently running at full capacity. The company outsourced approximately 32 million square meters of tiles in FY26 and expects to outsource around 40 million square meters going forward, sourcing from multiple suppliers to mitigate supply risk from any single Morbi partner.

Gas Prices and Fuel Cost Management

Region-wise gas prices for Q4 FY26 and current April levels were disclosed by management during the earnings call.

Kajaria has taken price increases of approximately 12%–13% in its North plants and 16%–17% in its Morbi/West plants to offset the rise in fuel costs. The company uses biofuel in its spray dryers in the North, with biofuel accounting for approximately 30% of fuel usage in that region at a cost of around ₹20 per SCM — providing a meaningful cost advantage. Management confirmed that biofuel cannot be used in kilns, capping the overall biofuel mix. Propane supply to industry has been restricted by the Government of India since March 5, with priority given to domestic LPG and fertiliser production.

Margin Outlook and Cost Structure

Management expressed confidence in sustaining EBITDA margins in the range of 18%–19% going forward, supported by price increases taken from April 1, volume growth, and operational efficiencies. Staff costs for FY26 were approximately ₹530 crores (around ₹130 crores per quarter), with other operating expenditure at approximately ₹480 crores. Management indicated that while some absolute cost increases are expected, these will be more than offset by volume growth and improved realisations as a percentage of sales. Ad spend, which was approximately ₹90–₹100 crores in FY26, is expected to increase by 40%–50% in FY27 as part of a more aggressive brand-building strategy.

On the Bathware side, the company completed a buyout of a 15% stake held by a key investor for ₹50 crores. The investor had originally invested $10 million eight years ago. Management also announced a buyback, citing tax efficiency for shareholders, sufficient cash on the balance sheet, and the objective of improving return on equity. Promoters have decided not to draw salaries for FY27 as well. The company has also strengthened its leadership team with new appointments including a Chief Human Resources Officer, Chief Marketing Officer, Chief Digital Officer, and senior hires for the Kerovit bathware brand.

HSBC Reiterates Buy, Raises Target to ₹1,400

Following the Q4 FY26 results, HSBC reiterated its Buy rating on Kajaria Ceramics and raised its target price to ₹1,400. The brokerage highlighted the disruption in the unorganised ceramics segment as a primary driver of the Q4 outperformance, alongside reduced competition and ongoing cost optimisation as structural positives supporting the company's outlook.

Kajaria Ceramics Limited has disclosed to BSE Limited and the National Stock Exchange of India Limited that the notice regarding the Second 100-Days' Campaign 'Saksham Niveshak' was published in the Financial Express (English) and Jansatta (Hindi) on May 1, 2026. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice has also been placed on the company's website at www.kajariaceramics.com .

Campaign Overview

The Second 100-Days' Campaign 'Saksham Niveshak' has been launched by the Investor Education and Protection Fund Authority as part of its broader mandate of investor education, awareness, and facilitation. The campaign runs from April 1, 2026 to July 9, 2026, specifically targeting shareholders whose dividends remain unclaimed. The initiative emphasizes Know Your Client (KYC) updation and related compliance measures to help shareholders maintain their investment rights.

Shareholder Action Requirements

All shareholders with unpaid or unclaimed dividends, or those required to update their KYC, bank, and nomination details, are requested to take immediate action. Shareholders can download KYC updation forms from the company's website at https://www.kajariaceramics.com/share-holder-query.php and submit the duly filled and signed forms along with KYC documents to the company's Registrar and Share Transfer Agent.

Registrar and Transfer Agent Details

The company has designated MCS Share Transfer Agent Limited as the point of contact for all KYC and dividend-related queries during this campaign.

Dematerialized Shareholdings

Shareholders holding shares in dematerialized form are advised to contact their respective Depository Participants directly to update their KYC, bank, and nomination details. This ensures that all shareholders, regardless of their holding format, can participate in the campaign and maintain compliance with regulatory requirements.

Campaign Benefits

The campaign serves multiple purposes for shareholder protection and compliance. It specifically reaches out to shareholders to update their KYC and bank/nomination details while facilitating the claiming of unpaid or unclaimed dividends. Most importantly, the initiative ensures timely receipt of future dividends and helps avoid the transfer of shares and dividends to the IEPF Authority. For assistance regarding the Second 100-Days' Campaign 'Saksham Niveshak', shareholders may contact the company directly at investors@kajariaceramics.com .