Kajaria Ceramics Q2FY26 Concall Decoded: The Great Tile Rebuild 🧱📉➡️📈
1. Opening Hook
For years, Kajaria has been India’s ceramic royalty—shiny tiles, sharper margins, and the Kajaria family smiling from every investor deck like they just redesigned the Taj Mahal. But the last few years were different: soft demand, margin potholes, and a three-division mess where even dealers didn’t know who to call.
So, the Kajaria 2.0 plan began — unify the chaos, fire inefficiencies, and maybe even stop sending three salesmen to the same shop. Q2FY26 was their “we’re cleaning house” quarter. Margins soared, costs shrank, and the old guard officially handed the hammer to Chetan and Rishi Kajaria.
The mission: turn cost-cutting into culture, not crisis.
2. At a Glance
Metric
Q2 FY26
YoY / QoQ
Analysis
Revenue
₹1,186 Cr
+1% YoY
Flattish sales, but smart discipline.
Tile Revenue
₹1,051 Cr
Flat
Demand dull, restructuring in motion.
Bathware
₹102 Cr
+14% YoY
Kerovit shining bright.
Adhesives
₹32 Cr
+78% YoY
Small but growing fast.
EBITDA Margin
17.94%
+447 bps YoY
Multi-quarter high, thank you cost cuts.
PAT
₹133 Cr
+58% YoY
Profit doubled on same sales — rare feat.
Working Capital Days
56
↓ from 58
Inventory tighter than their new dealer policy.
Employee Headcount
↓ by ~250
–
“Right-sizing,” HR’s new favourite word.
3. Management Commentary (Translated from “Corporate” to “Desi”)
“We’re undergoing a cost optimization journey.” (Translation: We’ve started hunting inefficiencies like they’re wild boars.)
“We saved ₹30–35 Cr by reengineering packing boxes.” (Translation: Someone finally told procurement to open Excel.)
“Removed around 250 people.” (Translation: HR department now has shorter lunch queues.)
“We unified sales and dealer networks.” (Translation: Earlier, three Kajaria reps fought over one dealer. Now it’s peaceful—and cheaper.)
