Multiple headwinds to keep tiles sector under pressure in the near term

The ultra-luxury apartments demonstrate significant demand, driven by rising disposable incomes and a preference for high-end options

The tiles sector is facing a double whammy due to falling exports and weak domestic demand which will weigh on their March quarter. Further, a weakness in exports and lower volumes brought on by reciprocal tariffs could result in increased competitive pressures in the domestic market and impact margins. 

 

Given the multiple headwinds, the largest listed player Kajaria Ceramics is down 43 per cent over the last six months, followed by Somany Ceramics (41 per cent) and Cera Sanitaryware (32 per cent). Near term triggers such as the Q4 results or exports data does not indicate that there could be