The tile market is duller than an old bathroom floor, but Kajaria just waxed its margins to a shine. Revenue fell 1% (blame muted demand and plywood exit), yet EBITDA margin gleamed at 16.7% vs 15% last year. How? Promoters skipped their salaries, CFO pushed a “unification strategy,” and dealers got fewer salespeople knocking.
The real twist: Kajaria wants to become a “lean, thin” company—rare words in Indian corporate calls. Stick around, the tile gossip only gets juicier.
2. At a Glance
Revenue down 1% – Tiles flat, plywood dead.
EBITDA margin 16.7% vs 15% – Polished better than tiles.
Adhesives target ₹120 cr vs ₹75 cr FY25 – Sticking to growth.
Bathware to ₹480 cr vs ₹400 cr FY25 – From leaky losses to profitable.
Capex just ₹100–150 cr – Mostly office décor, not factories.
Cash ~₹500 cr – Dividends likely, no big M&A shopping spree.
3. Management’s Key Commentary
“Revenue stood at ₹1,104 cr, down 1% YoY; margins improved to 16.7%.” (Translation: Sales flatlined, but cost diet made us Instagram-ready.)
“We are unifying 3 tile divisions into one.” (Translation: Dealers prefer one salesman, not a wedding baraat of three. )
“Promoters will forgo salary until EBITDA run-rate hits ₹1,000 cr annually.” (Translation: No salary until we hit the gym’s ‘four-digit pack.’ Bold flex.)
“Exports were ₹4,500 cr in Q1 vs ₹16,000 cr FY25, but may rebound to ₹18–20k cr.” (Translation: Pray shipping costs calm down and Israel stops hogging headlines.)
“Advertising optimized to Tier-2/3 cities.” (Translation: Fewer hoardings in Delhi, more in Jodhpur—because masala sells in small towns.)
“No big inorganic plays; focus on consolidation.” (Translation: We’re done hoarding plants, will just polish existing tiles now.)
