Financial Performance Highlights
Kajaria Ceramics Limited reported exceptional financial performance for FY26 with standalone net profit surging 139% YoY to ₹456.77 crore (FY25: ₹204.14 crore) on revenue growth of 3.7% to ₹4,374.31 crore. On a consolidated basis, the company achieved net profit of ₹485.41 crore (65% growth) with revenue of ₹4,830.36 crore. Key profitability metrics showed significant improvement with EBITDA margin expansion of 508 bps to 17.84% and earnings per share reaching ₹28.68 (standalone) and ₹30.48 (consolidated).
Dividend Declaration & Capital Returns
The Board recommended a final dividend of ₹6 per equity share for FY25-26, following an interim dividend of ₹8 per share already paid during the year. This brings the total dividend for FY26 to ₹14 per share (1,400%), aggregating ₹221.71 crores, compared to ₹9 per share in FY25. The record date for the final dividend is set for September 21, 2026, with payment to be made within 30 days from declaration at the AGM. The company also completed a ₹296.70 crore buyback of 21.50 lakh shares at ₹1,380 per share.
Annual General Meeting & Corporate Governance
The company will hold its 40th Annual General Meeting on September 15, 2026 through video conferencing. Key agenda items include adoption of FY26 financial statements, final dividend declaration, and re-appointment of directors Chetan Kajaria and Rishi Kajaria. Both directors voluntarily forgone remuneration for FY25-26 and FY26-27. The company maintained strong regulatory compliance with SEBI Listing Regulations and Companies Act, 2013 requirements.
Operational Performance & Expansion
Operational highlights included tile production of 84.59 million square meters and bathware production of 21.24 lakh pieces. The company implemented its Kajaria 2.0 initiative focusing on cost optimization and premium product shift. Significant expansion plans were approved including ₹210 crore investment for 10 MSM capacity at Srikalahasti facility dedicated to high-value products, which is currently under commissioning. The company also converted 9.1 MSM line at Gailpur from ceramic floor tiles to Glazed Vitrified Tiles.
Subsidiary Performance & Fraud Incident
The Group disclosed a fraud incident at step-down subsidiary Kerovit Global Private Limited involving approximately ₹20.20 crore by the ex-CFO, with complaints filed with Delhi Police. The company made provisions of ₹19.81 crore for this embezzlement. Operations of Kajaria Plywood Private Limited were discontinued, resulting in a loss of ₹3.06 crore. The company acquired remaining 15% stake in Kajaria Bathware Private Limited for ₹50 crores.
Financial Position & Liquidity
The company maintained a strong balance sheet with total assets of ₹3,563.00 crore (standalone) and cash equivalents of ₹42.75 crore. Net cash from operating activities was robust at ₹562.85 crore. The company provided loans and guarantees to subsidiaries totaling ₹260.76 crores and ₹150.31 crores respectively. Gearing ratio improved to 5.63% from 9.29% in FY25.
Audit & Compliance Matters
Auditors Walker Chandiok & Co LLP issued an unmodified opinion on both standalone and consolidated financial statements. Revenue recognition was identified as a key audit matter due to diverse contract terms and management judgments required under Ind AS 115. The company transferred 8.16 lakh unclaimed shares to IEPF Authority and maintained compliance with all statutory requirements including MSME disclosures and internal financial controls.
Future Outlook
The company continues to focus on expansion with approved investments and capacity additions. Management remains committed to operational transformation through the Kajaria 2.0 initiative while monitoring the fraud investigation and recovery process at subsidiary level. The strong FY26 performance positions the company well for continued growth in the ceramics and building materials sector.