Transcript of Conference Call
KAJARIACER · price
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Kajaria Ceramics reported strong Q4 FY26 results with 11% volume growth and 12% revenue increase to INR 1,373 crores. EBITDA margin improved significantly to 19.19% from 10.01% in Q4 FY25, driven by cost optimization, better sales realizations, and operational efficiencies. PAT grew to INR 136 crores from INR 43 crores. The company took price hikes of 12-17% across regions to offset rising gas costs, with North gas prices at INR 55.54/SCM in Q4 rising to INR 62.5 in April. Management expressed confidence in maintaining 18-19% EBITDA margins going forward. Morbi plants faced disruption in March but resumed from April 16. Management declined to provide specific volume guidance, stating they will 'perform and prove' rather than give forward-looking targets.
The strong margin recovery and pricing power demonstrated in Q4 FY26, combined with expected benefits from Morbi disruption, positions Kajaria favorably for FY27. The stock could see positive re-rating if the company maintains the 18-19% margin guidance while delivering volume growth.