Kajaria Ceramics shares slip 3% post Q1 earnings: Check details here

The ceramics manufacturer reported a healthy rise of 21 per cent in profit after tax (PAT) to ₹108.98 crore during the quarter under review, as against ₹89.82 crore reported in Q1FY25

Kajaria Ceramics share price today: Shares of Kajaria Ceramics declined over 3 per cent on Wednesday, July 23, 2025, logging an intraday low of ₹1,202.20 per share.

 

Kajaria Ceramics shares were trading at ₹1,215.6, down by 2.09 per cent on the National Stock Exchange, at 01:35 PM. In comparison, NSE Nifty was trading above 25,100 level, up by 115 points or 0.46 per cent. Currently, the stock is trading 22 per cent below its 52-week high of ₹1,578.70.

 

The selloff on the counter came after the company released its earnings for the first quarter of financial year 2025-2026 (Q1FY26).  CATCH STOCK MARKET LIVE UPDATES TODAY

Kajaria Ceramics Q1FY26 earnings

The ceramics manufacturer reported a healthy rise of 21 per cent in profit after tax (PAT) to ₹108.98 crore during the quarter under review, as against ₹89.82 crore reported in the corresponding quarter of the previous fiscal year. However, the company's consolidated revenue figure stood at ₹1,104.33 crore in Q1FY26, marking a decline of 1 per cent from ₹1,113.69 crore recorded in the first quarter of FY25. 

As per the management, the drop in revenue figure was mainly owing to low growth in tile volume and decline in ply sales due to the closure of this division.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) margins for the quarter ending June 30, 2025, stood at 16.72 per cent, up from 15 per cent reported in the same quarter of the previous financial year.    ALSO READ | Aaron Industries jumps 7% as board approves bonus, record date for dividend

Should you buy, sell or hold Kajaria Ceramics stock?

 

Motilal Oswal Financial Services has maintained its 'Buy' rating on the stock, citing the company's cost optimisation efforts and improvement in efficiency levels driving growth ahead. "Kajaria Ceramics' earnings in Q1 were significantly above our estimates, led by strong cost control initiatives. Though the near-term demand outlook remains subdued, management expects margins to be sustained due to the cost rationalization efforts...we believe demand recovery would be the key trigger for stock price performance. We reiterate our BUY rating with a revised target price of ₹1,430, based on 40x Jun’27E EPS," the brokerage firm stated.

 

However, YES Securities has downgraded the stock to 'Neutral' as the volume figure might remain under pressure in FY26 due to soft demand. That apart, margins are expected to stay elevated as the company adopts cost optimisation measures. The brokerage firm has revised its target price to ₹1,334.  "At current market price, we reckon stock is factoring-in major positives and trades at PE(x) of 37x on FY27E earnings per share (EPS) of ₹33, leaving no major room for upside. Hence, we downgrade the stock to Neutral from Buy," Yes Securities said in its report.