Kajaria Ceramics Q4 Results: Stock slumps as profit drops 59% on weak bathware, plywood losses

Kajaria Ceramics Ltd reported a 59% drop in fourth-quarter net profit on Tuesday, hit by higher costs and a loss from discontinued operations, citing muted demand and losses in discontinued plywood operations.

The leading tile manufacturer posted a consolidated net profit of ₹43 crore for the January-March quarter, down from ₹104 crore a year earlier, according to a regulatory filing. A loss of ₹30.79 crore from discontinued plywood operations contributed to the profit drop.

Revenue from operations rose 1.1% to ₹1,222 crore, supported by a 5.73% sequential increase, though domestic tile demand remained subdued amid a sluggish real estate market. EBITDA declined 20% to ₹138.4 crore, with margins narrowing to 11.3% from 14.3% a year ago.

Tile volumes grew 2% in Q4 and 6% in FY25, with Kajaria reaching 114.7 million sq. metres (MSM) in annual sales. Export and domestic demand, however, remained soft, according to the company’s Chairman.

The company maintained a healthy balance sheet, with net cash of ₹424 crore as of March 31, 2025, and negative net debt-to-equity ratio of -0.15.

Kajaria has wound down its UK JV operations due to high operating costs and announced it would not proceed with a proposed ₹30 crore investment in a new tile facility under Kajaria Ultima Pvt. Ltd. It is moving ahead with a ₹15 crore tile adhesives plant in Rajasthan, expected to begin operations in June 2025.

The company also added a new subsidiary, Kajaria Adhesive Pvt. Ltd., and now operates nine manufacturing plants across India and Nepal, with total production capacity of 90.5 MSM.

On Tuesday afternoon, shares of Kajaria Ceramics were trading at ₹803.50, down 2.4% on the BSE.