Q1 2026 Kajaria Ceramics Ltd Earnings Call Transcript
Key Points
- Kajaria Ceramics Ltd (BOM:500233) reported an improvement in margins, with EBITDA margins increasing to 16.72% from 15% year-over-year.
- The company has initiated a strategic unification of its tile divisions to streamline operations, optimize costs, and enhance organizational agility.
- The Adhesives division is expected to grow significantly, with projected revenues increasing from INR75 crores to INR120 crores this financial year.
- Management has taken bold cost-cutting measures, including promoters foregoing their salaries until a four-digit EBITDA run rate is achieved.
- The company is focusing on optimizing advertising resources, particularly in Tier 2 and Tier 3 cities, to gain more market share.
- Overall market demand remains soft, with a 1% year-over-year decline in consolidated revenue due to low growth in tiles volume and the closure of the plywood division.
- The domestic market is still muted, and the company is cautious about the outlook due to external factors affecting exports.
- Despite cost optimization efforts, the company is not providing concrete guidance on future margins due to potential market volatility.
- The Bathware division, while expected to be profitable this year, still faces challenges in achieving desired margins due to high costs.
- The company is not planning any significant capacity expansions this financial year, which may limit growth opportunities.
Ladies and gentlemen, good day, and welcome to the Kajaria Ceramics Limited Q1 FY26 earnings conference call hosted by Nuvama Wealth Management Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Sneha Talreja from Nuvama Wealth Management. Thank you, and over to you, ma'am.
Thank you, Vishaka. Good evening all. We welcome you to Kajaria Ceramics Q1 FY26 conference call.
We are today joined by the senior management of Kajaria Ceramics represented by Mr. Ashok Kajaria-ji, CMD; Mr. Chetan Kajaria-ji, Joint Managing Director; Mr. Rishi Kajaria, Joint Managing Director; Mr. Kartik Kajaria; Mr. Sanjeev Agarwal, CFO; and Mr. Parveen Gupta, DVP, Finance. We will now start with the opening remarks with the management followed by the Q&A.
I will now hand over the call to Mr. Ashok-ji for his opening remarks. Over to you, sir.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
