At a Glance

Pokarna Ltd, India’s quartz-surfacing poster child, delivered Q1 FY26 results that felt like a hairline crack on a polished slab. Revenue fell to ₹171 Cr (-11% QoQ), and PAT slid 14% to ₹28 Cr. Margins at 32% remain strong, but the stock at ₹960 trades at P/E 16, pricing in more sparkle than the recent numbers suggest. With a global slowdown in building materials and management juggling granite, quartz, and apparel (seriously, Stanza shirts?), investors are asking: is the shine fading?

Introduction

Pokarna is to quartz what Maggi is to 2-minute noodles – a dominant player with global reach. Through its subsidiary PESL, it exports premium quartz surfaces to 23 countries, riding the housing and kitchen remodeling wave. But FY26 Q1 shows cracks: demand softness, margin compression, and management distractions. The market is split – is this just a temporary dull spot, or has the shine been polished off?

Business Model (WTF Do They Even Do?)

Pokarna operates two core businesses:

1. Quartz Surfaces (Quantra brand): 97% revenue, high-margin exports to the US and Europe.
2. Granite & Apparel (Pokarna Granite & Stanza): Remaining tiny segments with low growth.

The moat? Bretonstone® tech, designs portfolio, and strong export channels. Risks? US housing slowdown, anti-dumping duties, and raw material price swings.

Financials Overview

Q1 FY26 Snapshot:

• Revenue: ₹171 Cr (-11% QoQ, -12% YoY)
• Operating Profit: ₹55 Cr (OPM 32%)
• Net Profit: ₹28 Cr (-14% QoQ)
• EPS: ₹9.12

Annual FY25 was a mixed bag: revenue ₹930 Cr, PAT ₹188 Cr (+115%), OPM 35%. TTM growth softened to 26% while PAT growth slowed to 74% – still high, but momentum is cooling.

Valuation

1. P/E Method

• EPS FY25: ₹58.9
• Industry P/E: 15
• Fair Value = 58.9 × 15 = ₹885

2. EV/EBITDA

• EBITDA FY25: ₹320 Cr
• Multiple: 10×
• EV ≈ ₹3,200 Cr → per share ≈ ₹1,050

3. DCF (15% growth, 10% discount)

• Range: ₹900 – ₹1,100

Current ₹960 → fairly valued, with slight optimism baked in.

What’s Cooking – News, Triggers, Drama

• US housing slowdown weighing on quartz demand.
• New designs & tech upgrades in Quantra line.
• Stanza apparel still a niche side hustle – no impact.
• AGM on Sept 10, 2025 – investors eye management commentary.

Balance Sheet

Commentary: Healthy equity, falling debt – balance sheet cleaner than a freshly polished slab.

Cash Flow – Sab Number Game Hai

Commentary: Strong operational cash flow, controlled capex – a positive.

Ratios – Sexy or Stressy?

Commentary: Sexy profitability, low leverage – fundamentals solid.

P&L Breakdown – Show Me the Money

Commentary: FY25 was a breakout; Q1 FY26 shows slowdown.

Peer Comparison

Commentary: Pokarna leads peers in margins and scale.

Miscellaneous – Shareholding, Promoters

• Promoters: 56.66% (stable)
• FIIs: 6.13% (rising)
• DIIs: 14.98% (steady)
• Public: 22.2%

No promoter drama – institutional support growing.

EduInvesting Verdict™

Pokarna remains India’s quartz export champion with industry-best margins and strong financials. However, Q1 FY26 weakness signals that external headwinds (housing, demand softness) are real. The company’s focus on premium products and low debt keeps it resilient, but earnings growth may cool.

Past Performance

• From granite roots to global quartz leader.
• Stellar growth in FY25, driven by exports.

Headwinds

• US housing slowdown.
• Rising competition in engineered stone.
• Currency fluctuations.

SWOT

Strengths: Premium brand, high margins, global footprint.
Weaknesses: Revenue concentration in exports, single product focus.
Opportunities: New designs, market diversification.
Threats: Trade barriers, economic slowdown.

Final Word

Pokarna is like a premium countertop – solid, polished, but sensitive to cracks in the global market. For long-term investors, it’s a quality compound. For short-term traders, the Q1 dip may keep the surface dull for a while.

Written by EduInvesting Team | 30 July 2025
SEO Tags: Pokarna, Quartz Surfaces, Q1 FY26 Results, Stock Analysis