01 — At a Glance
The Company That Exports Shiny Stones And Now Gets Taxed For It
- 52-Week High / Low₹1,359 / ₹693
- Q3 FY26 Revenue₹135 Cr
- Q3 FY26 PAT₹20.4 Cr
- Q3 FY26 EPS₹6.57
- Annualised EPS (Q1-Q3 Avg × 4)₹24.4
- Book Value / Share₹262
- Price to Book3.17x
- ROE (Last Year)27.4%
- ROCE (Last Year)28.4%
- Debt/Equity0.34x
Flash Summary: Pokarna is India’s #1 exporter of premium quartz surfaces — think fancy kitchen countertops sold to American homeowners who suddenly discovered that ₹50,000 slabs are now 50% more expensive. Q3 FY26 was a disaster: revenue down 40%, PAT down 60%. Why? Because in August 2025, Uncle Sam slapped a 50% reciprocal tariff on Indian exports. The company’s trying to find new markets. Spoiler: they’re not easy to find when you’ve spent 30 years selling only to the USA. Rating agencies just downgraded the outlook from Positive to Stable. Ouch.
02 — Introduction
The Quartz King Who Doesn’t Know Any Other Customers
Imagine building a business for 30 years. You become the best. You export to 23 countries. But 83% of your revenue comes from one customer: America. Then one Tuesday morning, America says, “Thank you for the beautiful quartz. Now it costs 50% more.” What do you do? You panic. Internally. Professionally. Like Gautam Chand Jain and family are doing right now.
Pokarna Limited started in 1991 as a granite mining operation. Two decades later, they realized quartz engineered surfaces were the future — fancier, more durable, more expensive. They bought Italian technology from Breton SpA, started a subsidiary called Pokarna Engineered Stone Ltd (PESL), and became the world’s largest exporter of premium quartz surfaces. Revenue grew from ₹295 crore in FY21 to ₹930 crore in FY25. Profit grew even faster. Life was good. Life was very good.
Then came August 27, 2025. The US tariff hit like a cricket ball to the windpipe. Q1 FY26 revenues were down 11%. By Q3, they were down 40%. The company is now frantically trying to diversify into Canada, Mexico, France, Russia, and anywhere that doesn’t have a 50% tariff wall. Good luck with that strategy in 2026.
CRISIL Ratings Note (Sep 2025): Outlook revised from ‘Positive’ to ‘Stable’; CRISIL A-/Stable. The agency confirmed that while the company has strong fundamentals and financial metrics, the US tariff has made the business environment “highly uncertain.” Translation: they love the company, but geopolitics scares them more than a Bollywood plot twist.
03 — Business Model: WTF Do They Even Do?
They Mine Rocks, Polish Them, and Sell Them Overseas For ₹50,000 Per Slab
Pokarna has two main businesses: granite and quartz. Granite used to matter. It was 11% of revenue in FY22. By 9M FY25, it was just 3%. Why? Because quartz is sexier, more profitable, and doesn’t require constantly mining new quarries like some kind of geological treadmill.
The quartz business is simple: source raw material, run it through Breton SpA’s Italian machinery (which costs money and space), create 100+ designer finishes under the “Quantra” brand, package it, and ship it. Sounds easy. Margins are beautiful — 32-40% EBITDA margin. The problem? The entire supply chain is built around “let’s export to America.” Customers are American builders, distributors, and retailers. When America says “50% tariff,” the entire model breaks. No backup plan. No Plan B. Just a lot of “Let’s hope tariffs get rolled back” conversations on Zoom calls at 7 PM Indian Standard Time.
The company is now setting up a new quartz manufacturing line at its Mekaguda facility in Telangana — a ₹440 crore investment. This will add 810,000 sq m of annual capacity. Timeline: March 2026. Is this genius or desperate? The company is betting on increasing volumes and hoping tariff conditions improve. Or maybe they’re preparing to supply more to non-US markets. Either way, they’re burning cash to build capacity in an uncertain environment.
Quartz Revenue97%of total (FY25)
US Revenue83%of total (FY24)
EBITDA Margin35%FY25 range
Exports96%of revenue
The company loves to remind investors that they have “healthy client relationships” and “proven expertise” with “30 years of industry leadership.” That’s corporate speak for: “We’ve been doing the same thing for three decades and suddenly the world changed on us.” The brand “Quantra” is apparently famous. Let’s hope it’s famous enough in Canada and France.
04 — Financials Overview
Q3 FY26: When Your Best Customer Imposes A Tariff, Nothing Is Beautiful
Result type: Quarterly Results | Q3 FY26 EPS: ₹6.57 | Avg Q1–Q3 EPS: (₹9.12 + ₹2.04 + ₹6.57)/3 = ₹6.10 | Annualised EPS: ₹24.40
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 135 | 224 | 118 | -39.6% | +14.4% |
| Operating Profit | 41 | 78 | 24 | -47.4% | +71.0% |
| Operating Margin % | 30% | 35% | 20% | -500 bps | +1000 bps |
| PAT | 20.4 | 51 | 6 | -59.7% | +240% |
| EPS (₹) | 6.57 | 16.32 | 2.04 | -59.7% | +222% |
The Brutal Truth: YoY comparisons are absolutely grim. Revenue down 40%, PAT down 60%, EPS down 60%. But wait — QoQ comparisons show recovery! Revenue up 14%, PAT up 240%, EPS up 222%. What does this mean? Q2 FY26 (Sep 2025) was the absolute nadir. The company was in total meltdown mode. Q3 shows stabilization, not recovery. They’re stabilizing at a lower level — like a patient who’s no longer dying, but definitely still in the ICU.
The P/E Situation: Annualised EPS is ₹24.40 (based on Q1-Q3 average × 4). CMP is ₹828. P/E = 33.9x. That’s absurdly high for a company that just reported a 60% profit decline. Industry median for this space is around 22x. Pokarna is trading at a 54% premium to peers. Why? Because investors still believe this tariff situation is temporary. Or they’re just waiting for the stock to crash further before buying. Either way, the valuation is stretched like yoga pants at an Indian wedding.
💬 If Pokarna’s fundamentals have taken a 60% hit, but the stock is down 35% in the last year, does that mean the market is being rational, or is there more pain coming? What do you think the fair value should be?
05 — Valuation Discussion – Fair Value Range
What Is This Company Actually Worth When One Market Collapse Hits It?
