Kajaria Ceramics Q3: Margin expands sharply despite modest revenue growth

Kajaria Ceramics Limited on Friday, january 30, consolidated net profit of ₹86.1 crore in Q3FY26, up 9% year-on-year from ₹79 crore in the same period last year. Revenue from operations rose 1% YoY to ₹1,168 crore, compared with ₹1,155 crore a year ago.

The country’s largest tile maker's profit growth was supported by strong operating performance and margin expansion, even as revenue growth remained modest.

Its EBITDA surged 32% YoY to ₹201.5 crore from ₹152.7 crore, while EBITDA margin expanded to 17.2% from 13.2%, reflecting better cost control, improved operating leverage and a favourable product mix.

Kajaria’s core tiles segment continued to be the primary growth driver, contributing ₹1,029.82 to the revenue and ₹148.23 crore to the profit of the company, while others segment also posted improved profitability on a year-on-year basis.

During the quarter, the company booked ₹18.30 crore exceptional items linked to the implementation of new labour codes, which included provisions towards gratuity and compensated leave liabilities, the company said in its exchange filing.

On the corporate front, the board approved the acquisition of the remaining stakes in Kajaria Adhesives Private Limited and Kajaria Surfaces Private Limited, making both entities wholly owned subsidiaries. The board also approved key senior management changes, including the appointment of Vinit Kumar as General Counsel & Company Secretary with effect from April 1, 2026.

For the nine months ended December 31, 2025, Kajaria Ceramics reported consolidated revenue of ₹3,457 crore and net profit of ₹330.4 crore, compared with ₹3,413 crore and ₹256.8 crore, respectively, in the year-ago period.

Following the Q3 results announcement, shares of the company closed 0.40% up at ₹894.90. The stock has dropped 7.59% in the past one month.