Kajaria Ceramics Limited Earnings Summary — Q4 FY2026

• Q4 FY2026 marked a significant recovery with Net Profit jumping 265% year-on-year to INR 157 Crores.
• Operating margins expanded to 19%, the highest level in over three years, driven by better cost management and potentially lower energy prices.
• The company achieved its highest-ever quarterly sales of INR 1,373 Crores, representing a 17.5% sequential growth.
• Financial health remains exceptionally strong with total debt reducing from INR 274 Crores in Mar 2025 to INR 229 Crores in Mar 2026.
• Annual Free Cash Flow for FY2026 reached a record INR 563 Crores, significantly higher than the previous year's INR 305 Crores.
• Diversification into bath-ware and plywood continues to contribute approximately 12% to the overall revenue mix.
• Equity capital remains stable at INR 16 Crores, while total reserves have crossed the INR 3,000 Crore milestone.

Management remains strategically focused on an 'asset-light' model through outsourcing and JVs while maintaining a healthy dividend payout of approximately 46%.

Improving

The sharp rebound in operating margins from 11% in Mar 2025 to 19% in Mar 2026 suggests the company has overcome the previous year's fuel and cost pressures.

The outlook is positive as the company transitions from a manufacturing focus to a lifestyle brand. With a debt-free balance sheet and strong ROCE above 20%, Kajaria is well-positioned to leverage the cyclical recovery in the real estate sector.