1. At a Glance
Pokarna Ltd is having one of those quarters where the long-term story is sipping champagne, but the short-term numbers are nursing a headache.
Market cap stands at ₹3,238 Cr, stock price around ₹1,044, down 33% over the last year, yet still trading at a P/E of ~28x with ROCE ~28% and ROE ~27%. Confused already? Good. That means you’re paying attention.
Q3 FY26 numbers came in weak: Revenue ₹135 Cr (-40% YoY), PAT ₹20.4 Cr (-60% YoY), and margins slipping from their recent peak. Yet, the company continues to dominate India’s engineered quartz export market, earns 83% revenue from the US, and is in the middle of a ₹440 Cr capacity expansion.
So what is Pokarna right now?
A cyclical export-heavy business, temporarily bruised, structurally profitable, and strategically betting big when the cycle looks ugly.
Is this a granite company pretending to be a quartz company? Or a quartz company pretending this quarter didn’t happen?
Let’s dig.
2. Introduction
Pokarna is not new money. Founded in 1991, it survived granite cycles, China dumping, US housing booms, US housing crashes, freight shocks, and still emerged as India’s largest exporter of premium quartz surfaces through its subsidiary Pokarna Engineered Stone Ltd (PESL).
If you’ve heard of Quantra Quartz, congratulations—you’ve indirectly met Pokarna.
If you’ve heard of STANZA apparel, congratulations—you’ve also witnessed Pokarna admitting mistakes and shutting it down.
That right there tells you something about management temperament:
They will experiment, but they will also pull the plug when the numbers bleed.
FY25 was supposed to be smooth sailing. Instead, Q3 FY26 slapped investors with a reminder that US housing demand, inventory correction, and distributor destocking don’t care about your long-term thesis.
Yet, Pokarna still:
- Runs 30%+ operating margins
- Generates strong operating cash flows
- Maintains Debt/Equity ~0.34
- Is adding a 3rd Bretonstone line by March 2026
So the real question isn’t “Why did Q3 suck?”
The real question is: Is this a pause… or a peak?
3. Business Model – WTF Do They Even Do?
Let’s simplify Pokarna in one line:
They sell fancy kitchen slabs to Americans who renovate kitchens during good times.
Now let’s break that down.
Quartz Surfaces – The Main Character (97% of revenue)
Through PESL, Pokarna manufactures engineered quartz slabs using Bretonstone® technology from Italy. This is not granite mining; this is manufacturing + branding + export execution.
- 100+ designs
- Premium positioning
- Sold under Quantra brand
- Primarily exported to the US market
Quartz is preferred over granite because:
- Uniformity
- Lower porosity
- Design consistency
- Easier maintenance
Basically, granite is rugged; quartz is Instagram-friendly.
Granite – The Side Character (3% of revenue)
Once the hero, now a supporting actor.
Granite revenue has declined 33% YoY in 9M FY25 due to:
- Weak global demand
- Lower pricing power
- Logistics pressure
Pokarna still owns quarries and plants, but granite is no longer the growth engine.
Apparel – The Deleted Scene
STANZA apparel was closed in March 2024. Loss-making, distracting, and irrelevant.
Credit where due: Management cut it off cleanly.
4. Financials Overview
Quarterly Performance – Q3 FY26
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 135 | 224 | 118 | -39.6% | +14.4% |
| EBITDA (₹ Cr) | 41 | 78 | 24 | -47.4% | +70.8% |
| PAT (₹ Cr) | 20.4 | 51 | 6 | -59.7% | +240% |
| EPS (₹) | 6.57 | 16.32 | 2.04 | -59.7% | +222% |
