Kajaria Ceramics Q2 FY26 Results — Deep Dive & Peer Comparison; Impex Ferro Tech CoC Update
Kajaria Ceramics reported Q2 FY26 consolidated revenue of ₹1,186 crore, with margin expansion and a sharp rise in PAT — a results set that signals operating leverage kicking in despite muted top-line growth. We unpack the numbers, explain key terms for lay readers, compare performance with peers and provide a practical investor view. Below also: a concise update on Impex Ferro Tech’s 21st CoC meeting for debt-stressed investors.
For context, tile-makers have seen mixed demand patterns regionally; price actions, cost controls, and channel productivity matter more than headline growth in the near term.
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Kajaria Q2 FY26 — Headline numbers and what they mean
The company reported consolidated revenue of ₹1,186 Cr (up ~1% YoY), EBITDA margin of 17.94% (expansion of ~447 bps YoY) and PAT of ₹133 Cr (up 58% YoY). Tile volumes were broadly flat, while bathware grew (~14% YoY) and adhesives contributed modestly. Working capital days were reported at 56 days. These numbers were filed in the company’s published results and discussed by market outlets. 0
Key financial table (Q2 FY26 snapshot)
| Metric | Value | YoY / QoQ Change (or Notes) |
|---|---|---|
| Consolidated Revenue | ₹1,186 Cr | +1% YoY |
| EBITDA Margin | 17.94% | +447 bps YoY; +122 bps QoQ |
| PAT | ₹133 Cr | +58% YoY |
| Bathware Revenue | ₹102 Cr | +14% YoY |
| Adhesives Revenue | ₹32 Cr | Newer product line; small base |
| Working Capital Days | 56 days | Stable / efficient |
Explanation for lay readers: EBITDA margin is operating profitability before interest, tax, depreciation and amortisation — a higher margin suggests better cost control or pricing power. Working capital days measure how long cash is tied up in the operating cycle; lower is usually better as it frees up cash for growth or debt reduction.
What drove margin expansion despite weak revenue?
Kajaria highlights continuing cost-optimization initiatives: lower advertising spend, productivity improvements and better channel feedback. The company also benefits from a pricing gap with Morbi tiles (~20%), which suggests branded players can defend ASPs (average selling prices) and margin even when volumes stagnate. Margin expansion likely reflects operating leverage (fixed costs spread over sales) and targeted expense cuts. Market reports and the company’s filed extract support these observations. 1
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Peer comparison — who outperformed and why
We benchmark Kajaria versus larger tile peers such as Somany Ceramics and Asian Granito (representative players). Somany reported a healthier revenue growth pace in recent quarters (double-digit YoY in some releases) with margin improvement driven by cost control and product mix. Asian Granito’s operating margins remain under pressure compared with branded tile-makers. The contrast suggests Kajaria is navigating a middle path — moderate top-line growth but significant margin recovery. Sources: exchange filings and market coverage.
Practical takeaway from peers: If branded peers sustain volume recovery, Kajaria’s pricing advantage and lean cost structure can translate into stronger full-year earnings upgrades. Conversely, if Morbi-led low-cost supply intensifies, ASPs could compress and test current margins.
Operational notes and management commentary
Management flagged positive distributor feedback and has engaged consultants to boost market share — a tactical sign that management is focused on distribution effectiveness rather than aggressive discounting. Advertising spend cutbacks helped near-term margins but long-term share gains will require calibrated channel investments.
Valuation & investment view (concise)
Kajaria’s Q2 shows margin recovery is credible; however revenue momentum is weak (tile sales flat). Watch for: (1) confirmation of sequential volume growth in the coming quarter, (2) sustainability of margin improvement if advertising and SG&A rise again, and (3) competitive pricing actions from Morbi suppliers. For long-term investors, Kajaria is interesting if volume recovery pairs with sustained EBITDA margins — otherwise treat it as a margin-recovery play with contingent upside. Compare current market multiples with Somany and Asian Granito before allocation decisions. (See peer sources above.) 3
Impex Ferro Tech — 21st CoC meeting (short update)
Impex Ferro Tech held its 21st Committee of Creditors (CoC) meeting on October 16, 2025 (hybrid). The meeting discussed the Corporate Insolvency Resolution Process (CIRP) and approved CIRP-related costs up to September 25, 2025. The exchange intimation and post-facto filing confirm the CoC outcome. For creditors and investors in stressed-paper, the approval of costs is procedural but indicates continuing resolution activity rather than closure. 4
| Aspect | Detail | Notes |
|---|---|---|
| CoC Meeting | 21st meeting — Oct 16, 2025 | Hybrid meeting in Kolkata |
| CIRP Costs Approved Up To | Sep 25, 2025 | Post-facto intimation filed |
Readers with exposure to stress-case securities should follow exchange filings and NCLT timelines closely. Approval of costs does not imply resolution plan approval; it merely allows the resolution professional to meet administrative expenses incurred during CIRP.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, notes that Kajaria’s Q2 FY26 is a classic margin-recovery quarter — healthy profit growth without meaningful top-line expansion. Investors should wait for confirmation of sustained volume recovery before committing fresh capital; near-term trading exposure is justified if you believe margins hold and distributors translate feedback into higher shelf share.
For distressed-credit watchers, Impex Ferro Tech’s CoC activity is procedural and requires monitoring of the resolution plan timeline. Discover more analytical and policy-driven insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries
- How sustainable is Kajaria’s EBITDA margin improvement?
- Which tile-makers are best positioned if volume recovery returns?
- What are the next steps in Impex Ferro Tech’s CIRP?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
