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Kajaria Ceramics announced strong financial results for the fourth quarter and full fiscal year ended March 31, 2026. The company's consolidated revenue for Q4 FY26 grew 12% year-on-year to ₹1,373.35 crore. Profit After Tax (PAT) for the quarter saw a substantial surge of 266%, reaching ₹155.75 crore, with EBITDA margins at a healthy 19.19%.
For the full fiscal year FY26, revenue increased by 3% to ₹4,832.50 crore, and PAT rose by 65% to ₹485.41 crore.
The company is set to invest ₹210 crore in expanding its Srikalahasti plant, aiming to add 10 million square meters (MSM) of capacity by March 2027. Alongside this organic growth initiative, Kajaria Ceramics' board approved acquiring an additional 15% stake in Kajaria Bathware (P) Ltd. for ₹50 crore. This acquisition is expected to strengthen the company's presence in the bathware segment.
These investments in manufacturing capacity and the bathware subsidiary signal a strategic focus on both organic and inorganic growth, building on the improved operational efficiencies that drove the strong profit growth in Q4.
Kajaria Ceramics, India's largest tile manufacturer, has a history of strategic expansions. The company previously commissioned a unit at its Srikalahasti plant in May 2022. In recent years, it has streamlined operations, notably exiting its loss-making plywood business and scaling down UK showroom operations due to high running costs. A past incident involved a disclosure in late 2025 of a ₹20 crore fraud at its subsidiary, Kajaria Bathware, involving embezzlement, with recovery deemed unlikely.
Shareholders can anticipate increased production capacity for glazed vitrified tiles upon the Srikalahasti plant expansion's completion. The increased stake in Kajaria Bathware is expected to deepen market integration in bathroom solutions. The company has also signaled its intent to pursue an equity share buyback program, pending shareholder approval, reflecting confidence in its financial health.
Despite these positive developments, the company faces ongoing environmental compliance risks inherent in tile manufacturing, which may require further investment in clean technology. The company has stated it is implementing enhanced safeguards following the past subsidiary fraud incident. Past divestments also suggest a strategic refocusing on core strengths.
Kajaria Ceramics operates in a competitive Indian tile and bathware market alongside players like Asian Granito India Ltd, Somany Ceramics, Nitco Ltd, and Cera Sanitaryware Ltd.
Key watchpoints for investors include the timely completion of the Srikalahasti plant expansion, the performance and integration of the bathware segment post-acquisition, and regulatory approvals for the proposed equity share buyback. Maintaining improved EBITDA margins amid market competition and planned capacity additions will also be crucial.