Revenue and Profit Growth
Over the seven-year period ending March 2025, Kajaria Ceramics’ net sales have shown a robust upward trend, rising from ₹2,956.20 crores in 2019 to ₹4,635.07 crores in 2025. This represents a compound growth reflecting the company’s expanding market presence and product demand. The total operating income mirrors this growth, with no other operating income reported, indicating a primary reliance on core sales activities.
Operating profit before depreciation and interest (PBDIT) excluding other income has fluctuated but generally increased from ₹449.49 crores in 2019 to ₹626.18 crores in 2025. Including other income, operating profit reached ₹668.92 crores in 2025, though it peaked at ₹753.00 crores in 2024. Profit before tax followed a similar pattern, with ₹483.49 crores in 2025 compared to ₹358.03 crores in 2019.
Profit after tax (PAT) and consolidated net profit have also grown, with PAT rising from ₹228.75 crores in 2019 to ₹347.54 crores in 2025, while consolidated net profit increased from ₹226.57 crores to ₹294.35 crores over the same period. Earnings per share (EPS) have improved from ₹14.25 in 2019 to ₹18.48 in 2025, reflecting enhanced shareholder returns despite some volatility in interim years.
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Cost Structure and Margins
Kajaria Ceramics’ cost of raw materials and purchase of finished goods have increased in line with sales growth, with raw material costs rising from ₹791.80 crores in 2019 to ₹1,067.88 crores in 2025, and purchases of finished goods from ₹391.07 crores to ₹990.61 crores over the same period. Employee costs and power costs have also escalated, reflecting operational scale and inflationary pressures.
Operating profit margins excluding other income have seen some compression, declining from 15.2% in 2019 to 13.51% in 2025, with a peak margin of 18.3% in 2021. Similarly, the PAT margin has fluctuated, standing at 7.51% in 2025 compared to 7.74% in 2019, with a high of 11.11% in 2021. These margin trends suggest the company has faced cost pressures but maintained profitability through operational efficiencies and pricing strategies.
Balance Sheet and Financial Position
The company’s shareholder funds have grown steadily from ₹1,868.86 crores in 2021 to ₹2,744.34 crores in 2025, supported by increasing reserves which reached ₹2,728.41 crores in 2025. Kajaria Ceramics has managed its debt prudently, with total debt rising moderately to ₹175.94 crores in 2025 from ₹98.83 crores in 2021, maintaining a manageable leverage profile.
Net block assets have expanded significantly, from ₹1,163.64 crores in 2021 to ₹1,616.65 crores in 2025, indicating ongoing capital investment and capacity enhancement. Capital work in progress has varied, peaking at ₹263.36 crores in 2022 before moderating to ₹108.74 crores in 2025, reflecting project completions and new developments.
Current assets have increased consistently, reaching ₹1,818.56 crores in 2025, with inventories and cash & bank balances showing healthy growth. The company’s total assets have risen from ₹2,525.33 crores in 2021 to ₹3,755.42 crores in 2025, underscoring its expanding operational scale and asset base.
Cash Flow Trends
Cash flow from operating activities has generally improved, with ₹500 crores generated in 2025 compared to ₹508 crores in 2021, despite some fluctuations in interim years. Investing activities have consistently reflected outflows, indicative of capital expenditure and expansion efforts, with ₹371 crores spent in 2025. Financing activities have seen net outflows, signalling debt repayments and shareholder returns.
Net cash inflow/outflow has been variable, with a negative ₹79 crores in 2025 following a positive ₹87 crores in 2024. Closing cash and cash equivalents stood at ₹18 crores in 2025, down from ₹98 crores the previous year, reflecting the company’s investment and financing activities.
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Summary of Historical Performance
Kajaria Ceramics has exhibited a commendable growth pattern over the past several years, with net sales and profits steadily increasing despite some margin pressures. The company’s balance sheet has strengthened, supported by rising reserves and controlled debt levels. Capital investments have been significant, reflecting a focus on capacity expansion and modernisation.
While operating and PAT margins have experienced some fluctuations, the overall profitability remains solid, supported by effective cost management and operational efficiencies. Cash flow generation from operations has been robust, enabling sustained investment and prudent financing decisions.
Investors can note the company’s consistent earnings growth and improving book value per share, which rose from ₹107.82 in 2020 to ₹172.27 in 2025, signalling enhanced shareholder wealth creation. These factors collectively underscore Kajaria Ceramics’ strong historical performance and its potential for continued growth in the competitive ceramics sector.
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