Thanks, Yusuf. Good evening, everyone.

Thanks for joining. We have with us the senior management team of Kajaria Ceramics, including Mr.

Ashok Kajaria, Chairman; Mr. Chetan Kajaria, Vice Chairman; Mr.

Rishi Kajaria, Managing Director; Mr. Kartik Kajaria, VP and Head Adhesive Division; Mr.

Sanjeev Agarwal, CFO; and Mr. Parveen Gupta, VP Finance.

I would request Mr. Kajaria to start with the initial remarks, post which we will have a Q&A session.

Over to you, Ashok ji.

Thank you, Girish. Good evening, everyone.

It gives me great pleasure to welcome you to the quarter four FY26 earnings conference call of Kajaria Ceramics Limited. As already said, joining me on this conference call is the senior management team of Kajaria Ceramics.

I'm pleased to inform that this quarter we achieved a volume growth of 11%. This is a result of severer efforts made towards unification of sales.

During the first nine months, this unification meant realignment of inventory across channels, manpower alignment, and as a result, resulted into flattish growth. After which, we experienced good momentum in demand since January '26, which was a result of efforts made by us in the first nine months.

The production has fallen by 7% during the quarter due to shutdown of our Morbi plants in March, which have since started from 16th of this month. In quarter four '26, our consolidated revenue increased by 12% to ₹1,373 crores compared to the corresponding quarter last year.

EBITDA margin for quarter four stood at 19.19%. Margin improvement is a result of cost optimization and some improvement in sales realization over quarter three, along with all-round efficiencies in production, sales, and supply chain management.

I would also like to mention here that there has been a huge disruption at Morbi players in terms of costlier fuel, labor, and cash flow. As a result, Kajaria and other players who have multi-location plants will have a great advantage as you go forward, and their volumes and [unclear] for the year '26-'27.

For us, the journey has just begun, and we remain optimistic about the current year's performance and beyond. Let me share with you some data for the quarter, segment-wise financial performance.

Tiles segment grew by 11% year-to-year at ₹1,212 crores in quarter four FY26 compared to ₹1,088 crores in quarter four FY25. Bathware segment registered a 6% growth in revenue reaching 117 crores in quarter four compared to 111 crores in quarter four '25.

Revenue from the adhesive grew to 44 crores in quarter four '26 as compared to ₹21 crores in quarter four '25. EBITDA improved in quarter four FY26 to 19.19% as compared to 10.01% in quarter four '26.

PBT, the profit before share of profit from JV, exceptional items, and tax for the quarter grew to 228 crores in quarter four '26 as compared to ₹85 crores in quarter four '25. PAT for the quarter grew by to 136 crores in quarter four '26 as compared to ₹43 crores in quarter four '25 due to higher volumes and improved realization.

As of 31st of March 2026, the working capital cycle improved by 14 days to 51 days as compared to 65 days on 31st of December '25, mainly due to decrease in inventory and receivables. We'll continue to focus on reduction of our working capital cycle as we move forward.

With... Hello?

Hello? Hi, this is Sanjeev Agarwal, CFO.

I would just like to say that in our presentation in slide number nine, the inventory figure has been interchanged to debtors inadvertently. We have uploaded the revised presentation to the stock exchange and to our website also.

Please read inventory figure as debtors and debtor figure as inventory.

With this, I take this opportunity of thanking you all for joining us today. Over to moderator for Q&A, please.

Thank you.

Hi. Thank you for the opportunity.

Sir, congratulation on strong set of numbers. Sir, wanted to get a sense on Q4 growth.

One is because of unification, and secondly, we believe because of this Iran thing, the Morbi has taken a shutdown. Possible to bifurcate how much volume growth could be coming because of the Morbi shutdown?

Secondly, how are the things looking on Q1 side?

This volume growth is not because of only the Morbi shutdown. In January and February also, we had a volume growth, it was consistently throughout quarter four in Jan, Feb, and March.

What was the second question, please?

How are the things looking in Q1? Q1's growth should be stronger than Q4?

The momentum has started now, and we are looking at a good '26-'27 going forward. We cannot check it on quarter-wise, but the good momentum has started now, I would say.

In general, Q1 historically is low in the industry and Kajaria. Q4 cannot be compared with Q1.

The whole year is going to be much, much better.

No, I got it. I was asking more on year-on-year, April-on-April basis, matlab the momentum, whatever the double-digit volume growth, that might be continuing in April also.

Possibly might be at an accelerated pace was my question. My, sir, first question was that I understand it's because of both unification and Morbi, I was just trying to ask if possible to bifurcate this growth.

Just, let's say, for example, what has been your growth in, let's say, Jan and Feb, the first two months, when we have not seen the Morbi disruption?

As the Vice Chairman said that the growth is not just because of Morbi, because we had started getting the growth from the month of January itself. Jan and Feb volume growths were 8%

to 8%

to 9%, and then it continued into March also.

Understood. Got it.

That is helpful. Sir, what sort of price hike you have taken in the market because of inflation in gas prices?

How are the gas prices now and in last quarter, Q4?

Can you repeat the question, please?

My question is, what sort of price hike you have taken because of increasing gas prices? What were the gas prices region-wise in Q4 and currently?

We have taken a price increase of roughly 12% to 13% in our north plants, and Morbi has been slightly higher around 16% to 17% because the gas prices have gone up much higher there. That's been the region-wise price increase, and south is also in the similar lines.

More or less, we have covered the cost of increase of gas. With some added margin, but more or less covered the cost which have gone up.

Sir, region-wise gas prices for Q4 and currently, how it stands?

See, there is a very combination. See, what has happened in the month of March, all the plants in Morbi were shut down.

Almost there's no calculation of as far as Morbi is concerned. Now we have started the Morbi plants on 16th of April.

As far as the gas prices in north are concerned, the Government of India made a restriction that you will get for the first few days 80% and 65% and it's a varied price, as you might be aware. Exact number is difficult to say, but calculated way the prices have gone up quite a bit.

We have different type of gases in our non-Morbi plants.

Understood. Fine.

Thank you so much.

Hello. Thank you sir for opportunity, and congratulations on a great set of numbers.

Just continuing with the last participant's question, where you generally used to give breakup of north, south, and west average gas prices, could you give that to us for Q4?

North is roughly ₹55.54 per SCM for quarter four. South was 49.6, and west was 46.57.

Could we have current prices too, if possible?

April, the price in north is roughly 62.5, south is around ₹81, and west is 79.

Sneha,

these are gas prices, not the complete fuel, gas prices, yeah.

Understood. You are saying that you also have biofuel because of which the average fuel prices might be on the lower side.

Is my understanding correct?

That's correct. Yeah.

Average fuel price would be lower than the gas price.

Understood. This is where we would have some advantage versus Morbi.

What would be the current mix of biofuel, 20-25%, if I'm not wrong?

North 15%? No,

north plant is about 30%.

30% for the biofuel.

The whole, entire north plant, three plants

in north. Entire north plant, yeah.

Wahan toh biofuel hai hi nahi na. In there they are using coal in Morbi.

South also coal.

South is also about 25% coal.

Understood. Understood.

Secondly, sir, an extension to this, given there is a steep increase in gas prices and the way we have taken price increases too to manage the margins, any end-user demand impact that we are seeing on ground not just because of the tiles' price increases, I think we are seeing it across the construction space, like we have seen sharp increases, let's say, in wood, in HRC, across the board. Are you seeing any amount of hit taking place in the construction sector?

Not really. I think the demand is there, and tile is a very small segment in the entire real estate project.

Just for that price increase, they will not stop their construction. We are looking at a good demand for the year.

Any guidance that you want to give?

See, guidance, as you are aware, I have always given right. It didn't work out.

After I give the guidance, you people say you have not done this. My request would be, going forward, not to give any guidance, and we perform and prove to you people that we are doing a good job as a team.

Perfect, sir. Got that on the volume front.

Anything on the margin front that margins would stabilize here?

Margins, we are confident that with the current scenario, we should be maintaining between 18% to 19%.

Perfect, sir. Thanks.

Thanks a lot, sir. I'll get back in the queue.

Thanks. Thanks.

Thank you for opportunity and many congratulations on good set of numbers. My first question is related to the fuel.

As you had given that the fuel prices has increased in all the three locations, but if I look at your fuel expenses as a percentage of sales has been down. Is that the impact has not reflected in a Q4 or the price hike which you had highlighted already taken, that's the impact as well?

We took a price hike in early March.

Okay.

That has resulted in the... Your question was fuel price is down in the Q4?

Fuel prices as a percentage of sales has been down.

That is because of the lower production. We produced less, 7%.

We sold more, and we are comparing the percentage on sales. Sale is higher, and production is less.

Sale is higher by 10-11%, 12%, and production is down by 7%. As a percentage, the fuel price have gone down.

In fact, actually the price per square meter has gone up.

Right. Got it.

Because you were seeing absolute number.

Yeah. Correct, sir.

Second thing on the price hike, as you said that early March you had taken the price hike, in the coming quarters of this quarter, Q1, we will see the entire benefit of what 12% to 15% of a increase in the prices in our realization?

We should see definitely some increase in the price realization.

We cannot quantify any number because it's a very dynamic situation. We have taken the price increase.

We might have to give some discount as well.

Like in projects, we might be a little more flexible in terms of our pricing. So...

One thing is there, the prices will be much higher than what we were seeing earlier. Realizations will be much better.

Right. Right.

Last question, sir, because Morbi yet to fully resume or come to the force, such benefit what we had received in the Q4 in terms of the volume growth, we can see in this quarter and the coming quarter till the Morbi is not coming back with the fully production?

No. From 1st of May now, Morbi is also starting their production.

GSPC is giving gas to whoever wants to take it in Morbi. That quarter four scenario is not there anymore.

Now gas is available to anyone who can take it and produce and sell. That is the current scenario going forward from May 1st onwards.

See, two things are happening. One minute, one minute.

Let me explain to you. Two things are happening.

For the first time in last five years, the gas prices are going up like this. The gas prices, which was ₹47 or ₹48 landed, is as of today is ₹84.50 landed for the Morbi players, which includes the tax, which includes the calorific value equalization, point number one.

Point number two, for the extra price, you have to give a banker into GSPC. Third point, when it comes to pricing, you have to sell at these prices.

Morbi has, as we are all aware, Morbi has always reduced the prices, reduced the prices. First time, they have to take a 35% to 40% hike.

A product like four feet by two feet, which was selling at ₹20 a square feet, has to be sold at anywhere between ₹27 to ₹28 because that is the impact of gas. How can they sell cheaper?

Now, they are not sure whether they can sell at these prices. As of today, nobody knows how many plants will run, how many plants will be able to run properly.

The plants which will run properly are, one, who has created a brand in Morbi. There are a few players, I would say 10-12 players, who have created a brand for themselves, yes.

Secondly, who are outsourcing for organized players or some other players who have back up demand, yes, "I will produce and they will buy." Besides that, there is a lot of question.

A lot of questions will be answered on Monday, 4th, because 1st, 2nd, 3rd is a holiday. People are expecting to start, but Monday you will know how many players have started the plant.

That would be my answer to that.

Thank you so much, sir, and that's really helpful to understand the current situation. All the best, sir, for future.

Thanks a lot.

thank you for the opportunity and congratulations on a good set of numbers. Sir, my first question is the production, I was just trying to align the numbers.

Your production is down by about 7%. Your sales is up by 12%.

Is it fair to assume and interpret that there was a lot of finished good inventory lying with you earlier, which was ready, which you sold off in March? Going forward, with that inventory liquidation behind us, our sales would be more in line with our production?

Is that the right way to look at it?

You're right. Firstly, inventory has gone down because of the shutdown of Morbi, our inventory has gone down.

Secondly, going forward, currently all our plants are running at full production. With a combination of our own plants running at full production and our stocks, we'll be able to service all the sales orders.

Outsourcing as well. Outsourcing is still a little problem because, as we just said, that Morbi, a lot of plants are still shut down.

We have enough stocks, and our plants are running at full capacity to service the market, to do our numbers.

Understood. Sir, just as a follow-up, what is the current capacity utilization of our plant?

If you could please bifurcate that as a outsourcing in Morbi and in the other regions, and how much percent of our supply is coming from Morbi?

Sonali ji, our production will be, as Rishi said just now, from 16th of April, all the plants are running at full capacity. Today, as Kajaria, we are outsourcing to the extent of almost 27-28% of the materials from Morbi.

Now there is a question mark get in the month of April. April was of course tough, but how much we get in May, things could get normal as we go forward.

Right now, that's a question mark because many plants, as I just said a few minutes before, are not running. Because they are not running for a simple reason, they started getting gas is only from 16th of April, and then again from 1st of May for the people who have not started the plants yet.

As we go forward, we will know. Our plants are running full.

As rightly said by Rishi, our stocks have come down by almost 1.5 million square meters in the month of March itself because the Morbi plants were shut down and we sold more. That's how stocks have come down, and we also realized better cash flow because of tightening up the norms.

Got it, sir. Very clear.

Just one last question from my end, export definitely Gulf accounts for about 25% of the overall...

Your line is not clear, Sonali

ji. Voice is not clear.

Sorry. Sorry.

Is this better now, sir? Apologies.

Is this better? Yes.

On the exports, we understand Kajaria doesn't export, but Morbi used to export about 25% of its sales in Gulf. With that getting impacted, do you foresee more competition once the Morbi starts producing from the 1st of May?

Also we understand that they have taken price hikes, but with us taking about 15% price hike, do you think that the competition could be more from Morbi in the domestic market?

I think you didn't hear, Sonali ji. I said two things.

One, they have taken a price hike of 35% to 40% for a simple reason, that's the impact of gas only. I am not talking about other inputs like packing and all that, but just the impact of gas is roughly about 35% to 40%, number one.

Number two, as the plants were closed, the question of exports doesn't even arise because in the month of April the exports has hardly been ₹400 to ₹500 crores. Why?

I give you two reasons. One, the plants didn't run.

Secondly, a lot of exports to Gulf are affected. Give you a small example.

Before the war on 28th of Feb, the freight was $300 for UAE. Today, the freight for UAE is almost $4,000.

How can they export, and how will the buyer get? These are the factors which are hurting the industry.

My question was that once Morbi starts producing from 1st of May, and I agree with you that the exports are definitely impacted, would that increase the competitive intensity in the domestic market? That was my question.

That is what I said earlier. Out of 500-600 plants, which people say in the investing community, which I agree, not more than 1/5 As of today, there are only about 70, 80, 90 plants which are running.

As I said earlier a few minutes back, that on 4th of May you will know that how many plants are running. Our estimate is not more than 150 to 160 plants ultimately will run from 1st of May.

If they run, there is a big shortage as it is in the domestic market. Why will they export and have this headache?

They will rather feed the domestic market because domestic market is important. Coming to competition, there is already a big vacuum.

If you go to Morbi today, you will find many plants don't even have a single box. Sab bik gaya.

Everything has been sold. That's a scenario which has been told to us by people, "Sir, we have no material."

Because what the dealer did during the month of March, who were buying from Morbi, they told them, "Bhaiya, I give you money of the past. I give you money of the present.

Give me whatever you have at old prices." They have cleared their stocks in totality.

It's a very, very positive scenario for the so-called organized players who have multi-locational plants going forward for the whole of '26-'27.

Got it, sir. Very clear.

Thank you and all the best.

Thank you, Sonali.

Hi, sir. Very good evening and congratulations for a very good number.

Firstly, on the bathware side, this ₹50 crore buyout of the PE investor, is it for the entire 15% stake, or is it lower?

It's for the entire 15% stake. See, they invested $10 million 8 years back.

We bought the entire stake for ₹50 crore by mutual discussion and negotiation.

Got it, Sanjeev ji. Second question on the cost side, you obviously mentioned that 18-19% EBITDA margin is achievable next year.

When I look at this year, there have been a lot of cost-saving efforts which you have made. This staff cost of ₹530 crores for fiscal '26, the number looks like stabilized at ₹130 crores per quarter.

How should we look at this cost going forward for the other expenditure and staff cost?

Sorry, what was your question? Staff cost?

Sir, I'll just repeat myself. My question was that this year it was a restructuring year for Kajaria.

You've done a lot of effort on the cost side. For fiscal '26, the staff cost is now stabilized at ₹530 crores, which is ₹130 crores a quarter, and other operating expenditure also come down substantially to ₹480 crores, right?

If this is the base for fourth quarter run rate, how should we look at fiscal '27 on expenditure side?

In the similar grounds. We are not looking at...

You see, you have not calculated one thing. For the year '25-'26, in volume way, overall volume, we grew at 3%.

We are talking about a much positive growth going forward, as we have seen in the quarter four at 11%. We are saying that it'll be much better growth as we do it, because we are not giving any numbers, as I said, but will do much, much better as we go forward, number one.

Number two, some cost increase will be there, of course, because when you start a new year, some cost increase will be there. It will be very marginal, and it will be much more nullified by the volume growth which will happen and the price increase which has taken place from 1st of April, because second price increase only came from 1st of April.

See, in absolute number, there could be some increase mainly in case of labor and all. In terms of, as Chairman sir has said, as a percentage of sale, it will be lower.

Selling cost, administrative cost as a percentage of sale

will go down. Will go down.

Very clear, sir. Last question, sir, when I look at the production, my senses for Kajaria in-house production is about 60-65 million square meters, and please correct me if I'm wrong.

When I look at... It is 84 million square meters.

87.

87.

You can complete your question.

I was actually breaking it down into three parts: own capacity, joint venture, and outsourcing. I was looking at own capacity and joint venture is about 89 MSM, I agree with you.

The question

was... 87.

87, 87 million. The question I'm asking is fourth quarter when I look at production, looks like the JV production obviously is declined purely because of some gas supply issues in Morbi going forward.

That happened only in the month of March. Don't forget that happened only in the month of March.

January, February Morbi has been also normal.

Yes, sir. Just from 16th of April, when you are saying that gas is available for all of our plants, should I assume it is also for our outsourcing partners and joint venture plants put together?

Should I assume that?

Absolutely. Absolutely, yes.

Correct. Joint venture partners, yes.

Outsourcing partners is a question mark. Because we are not completely outsourcing 100% from each of the outsourcing partners.

They are buying some percentage of our sales. If they can't run the plant fully on their own, then they will not produce just for us a small percentage of their sales.

That's a question mark. As we go forward, we will get to know more about it as the events unfold.

Got it, sir. Because that is almost 30 million square meters we have sold from outsourcing partners last year.

That will all get compensated from your in-house production from JVs and own plants, is that correct?

It is not that the whole outsourcing will stop. The outsourcing will reduce that too in initial months.

Morbi has already started. From 1st of May, more plants will open.

They will have to sell. They will have to sell to Kajaria first.

It is a one or two months disturbance in the supply. It is not a permanent disturbance.

Because when we are ready, when we are giving assurance, as Chairman sir has said, the plants are running whoever who have a brand and who have a confirmed order. There can be situation that we are outsourcing from 20 plants, we will outsource, let's say, from 12 plants going forward.

You see, last year we sold 118 million, produced about 87-86 million, and we outsourced about 32 million square meters of tiles. As Sanjeev was just saying, suppose A doesn't run, we will tie up with B.

The question is very simple. Material availability is not a problem for Kajaria.

If Kajaria has to outsource, this year we have to outsource almost 40 million plus, right? We will outsource from A, if not A, B, C.

As plants go on, this problem is limited to probably for the month of April and May. As things normalize, people will come forward to our this thing and say, "Bhaiya, aap humse le lo.

Hum plant chala rahe hain. Why don't you buy from us?"

Outsourcing will not be a problem in terms of square meters as we... Initially, it's a problem.

Going forward, it will not be a problem.

Because we will be realigning our suppliers.

Got it, sir. Very clear, sir.

Thank you so much and wish you all the best for fiscal '27.

Hi, sir. A couple of questions.

Sir, first is if you could please help clarify. Sir, aapne bataya ki Morbi will need an increase of 35%, I think you said ₹20 and then ₹27.

Sir, you also said initially that 16% to 17% price increase in west, and ours will be in similar lines. I just wanted to understand the timelines for both the numbers.

Nahin, you see, what you have not understood, Morbi per se was selling a product, let's say, ₹20 a square feet, that's a four feet by two feet tiles, right? Today, as far as they are concerned, their costs have gone up by 35% because of increased price of gas.

Their price have gone up from ₹20 to ₹27 or ₹28 depending on the customer. As far as Kajaria is concerned, I was already selling at a higher price.

My price increase is only 15-16%, which covers the cost of gas and this thing. That is what the scenario is.

Agar

aap Morbi se maal loge, somebody supplies you from Morbi, he was earlier supplying you at ₹20. Today, if they supply you at a price of ₹27, ₹28, maybe ₹29 also square feet, their cost escalation is 35% to 45%.

There are two things. One, the Morbi price is cheaper, and our price is, the branded price, are higher.

The same cost will be less, same amount of increase will be higher percentage for Morbi and less percentage for Kajaria, number one. Going forward, the difference will minimize.

Number two, our non-Morbi gas prices have gone up much higher than the non-Morbi.

Nahin, you see, for Morbi, whatever we outsource, he is talking about that. Our prices were already higher when we are selling, the difference will minimize.

As Rishi said earlier, we are increasing by 15-16%, they are increasing by 35-40%, so that difference will minimize. Our cost will not go so much compared to because we're already more expensive.

Correct. Sir, just another clarification.

Sir, Morbi aapne bataya that ₹47 currently somewhere at ₹84. In our case, you indicated Q4 was 46.57, and April, you said, was 79.

How should we look at this 79 and 84? Like 79, you also indicated it was gas.

North plants are not 79. Main aapko formula samjha deta hoon, then you work out yourself.

In north, we are getting gas from GAIL India Limited, and we are getting three types of gas. That's RLNG, then the Henry Hub, and then JCC.

Government of India has already defined the formula that you will get 80% of normal and 20% of spot price. They started with that on 9th of March.

Then they reduced it to 65, then 55. Again, they brought it back to 65.

As of today, it is 80%. 80% is a normal, 20% is a spot price.

As far as south is concerned, south is Asia, we are in the same formula. For Kalahasti, last one we paid a higher price because we had no contact of spot price.

From 1st of May, we'll get it at normal price. We have entered into long-term contract with THINK Gas.

That's the scenario. Is that clear now, or would you like to...

Yes. Probably I'll call Sanjeev ji after the call.

Sir, my second question was, how much is the inventory that we have in million square meter? Is it closer to 18-20?

Inventory? Inventory would be about 11 11 million square meters total.

11 million square meters. Okay.

Sir, how much would the... Hello?

Haan ji, haan ji. Boliye, boliye.

Haan, and,

sir, how much would be the inventory at the JV partner levels or outsourcing partners? I'm just trying to understand that we have significant advantage not only because of size, location, but also the inventory that we have at our hand, which could also be low-cost inventory.

So... There is no low-cost inventory because the prices have already gone up from March, April, there cannot be low-cost inventory.

Inventory is normal because whatever is being produced is being sold. What Rishi said earlier, we have inventory.

Whatever inventory is there, it's okay because our plants are running at full capacity. There is a problem in what we were outsourcing.

In outsourcing, last year we outsourced to the extent of 32 million square meters. This year, we'll be outsourcing to the extent of 40 million square meters.

As things normalize, we'll get materials from outsourcing. As I said, if A doesn't start, B will start, C will start.

They will come to us and say, "Sir, aap humse maal le lijiye. You buy from us."

Simple.

Correct. This is helpful.

It is not that we or somebody else has an inventory of one month or two months. In Morbi, for your information, they have cleaned up the whole act.

There is no material. They have sold everything.

Correct. Wonderful.

Sir, lastly, any specific reason for the buyback decision at this point in time? How should we read into it?

The buyback decision is more to give out the market the confidence that we're very confident of good numbers going forward. We feel that we're going to do well, and it's a better allocation of capital.

See, earlier buyback was not tax-efficient. From this time, that it has become more efficient.

This is a better way of returning money to the shareholder. One, we were having enough cash on the balance sheet, which is much more sufficient than our capex and other things.

Two, it is tax-efficient to the shareholder. Three, it will improve our ROE also.

This is very helpful.

Mainly because of the tax laws.

Yeah. Understood, sir.

Thank you so much. Thank you for the answers.

Yeah. Hi, sir.

Sir, my first question is regarding the tiles production. If you see it has gone down by 7.5% in March quarter, but you have mentioned that all of our plants are currently operating at full capacity.

Just wanted to confirm from you that whether our tiles production volume is not likely to get impacted in Q1 as we have seen in Q4?

The tile production was down by 7% in March.

In March quarter.

In March quarter, and because March we had shut in Morbi plants. Now as I said, from 16th April, all our plants are running at full capacity, even the Morbi plants.

Okay. On a YoY basis, we can see some bit of a decline in our production in the current June quarter.

Is it correct, sir? Because we have started the plant from 16th of April.

Correct.

Okay. Sir, second thing, sir, you have mentioned that many plants in Morbi are still shut.

Whether our understanding is correct that outsourced sales volume for us might get impacted in the current June quarter, but it will go back to the normal level as things normalizes in Morbi?

You're absolutely correct.

Okay. Sir, third thing, sir, just wanted your sense, our tiles sales volume has grown at only say 6% CAGR over the say last seven-year period.

What would be our guidance on the volume growth say over the next three to five years for Kajaria?

I think our Chairman has already said about this, and we will not say over and over.

Sir, I did not get you, sir, when you have said. Can you please repeat once again?

I already said, hum har baar guidance dete the in the earlier years. It didn't work out for various reasons, because we have no control over the outside atmosphere.

We have a control over what we are doing, but we don't have the control over the outside atmosphere. Keeping in line, we have decided not to give any volume guidance, number one.

Number two, we will perform as we move on in a positive manner. That's all at this stage.

Okay. Sir, lastly, on the fuel side, sir, you have mentioned that our gas procurement cost in north is around say ₹62 versus say around ₹80 for west and south.

Just wanted to know what is the reason that our gas procurement cost is so low in north compared to the south and west region?

I think you didn't hear. One of the earlier speakers asked this question.

I answered. Again, I repeat for the benefit of everybody.

Government of India has set a certain formula. They have made GAIL as a nodal agency on 9th of March that you will coordinate for the entire gas pipeline because of this war.

Now what they have done, as per government guideline, whatever you have lifted in the last six months, you will get 80 They started off with 80% at normal prices, 20% at spot prices. Got reduced to 65, then to 55, again raised to 65, and again to 80.

As of this morning, we are getting in our north plant gas at 80% at normal prices, 20% at spot prices. As far as south Asia is concerned, we are getting in the same formula because they are the CGD company there is going by this.

In Kalahasti, we are getting gas from THINK Gas, and we had no such agreement for the month of April. We have to pay spot prices.

We have just entered into an agreement two days back, and we will get at normal prices in THINK Gas from 1st of May. That's the scenario.

Morbi scenario, you are already aware, I don't have to talk about it. It's a very fluctuating thing.

If I tell you, no, I am getting gas at this, these prices has no meaning because every day the norms are changing by Government of India and accordingly by GAIL. Whatever it is, we shared the formula.

If required, you can later work out and calculate the gas prices.

Okay. It would be helpful, sir, if you can, sir, throw some light, how is the supply of propane at the moment in Morbi in comparison to say January and February?

Propane is not allowed.

My dear, propane is not allowed for the industry. Government of India has issued a circular on 5th of March that propane will not be supplied to industry.

It will only be used for domestic LPG production. No industry is getting propane, for your information.

Okay. Thanks a lot, sir.

Thank you.

Thank you for the opportunity and congratulations for a great set of numbers. I just wanted to continue from the previous question on propane.

While we understand that in the recent times the propane is not allowed, but when the expectations are that Morbi is going to get back the production live, what is your sense? Is it going to be like a permanent shift to natural gas and propane not being allowed to Morbi even for the long term?

Is that a structural shift that you are assuming, or when things normalize then they might get back and shift back to propane? See,

how can we say that right now about propane? Also the propane price is ₹160, and it depends on the war situation.

Right now, household cooking and fertilizers are more of a priority sector for the government to give propane to. This is a very fluid subject which we cannot comment upon.

Plus, the price also very high of propane.

No, I wanted to get a sense because you are there closer to the industry. What is the inner circles indicating?

Government is serious about making a permanent shift to natural gas, or things can go back to propane in the long-term point of view, is what I'm asking?

See, neither for you nor for us to decide. It all depends on the war situation, what is happening.

Government's first priority is to give LPG to domestic, number one, which you are also aware, we are also aware. Second priority is to give to fertilizer, because that's an area they can't afford to this thing.

I just give you a small information. There is a shortage of fertilizer in India, and the fertilizer is being sold at 100% premium.

The import of fertilizer which is coming is at double the price of Indian production. That is why the priority of the government is to make sure.

Third priority, as earlier was power. Industry was coming later.

They are not giving any gas to the power industry. They say, "No, I can't give you gas."

Industry has been put on a priority number three. When I'm saying industry means all industry.

Sure. My second question is on the biofuel thing that you mentioned.

Is it possible to share what could be the comparable biofuel cost for you on a per SCM basis?

Biofuel cost varies, but I can share you. In the northern plants, the biofuel cost is about ₹20 per SCM comparatively.

In south, they are using coal. In Morbi, they are using coal.

Because in NCR, you cannot use coal. That is why we had an option to use biomass, which government has allowed.

It looks like a very good arbitrage now, getting biofuel at ₹20...

You see, let me tell you little bit about the ceramic tile plant. Tile plant consists of two major facilities.

One is called a spray dryer, one is called a kiln. Kiln can only be run on gas, natural gas, or propane or LPG, which is gas.

As far as spray dryer is concerned, it can be run on biofuel, it can be run on coal, it can be run on gas. We can only use biofuel in spray dryer.

That is why we give you this information that 30% of the fuel today is biofuel, which is used in the spray dryer in northern part of India.

Okay. You are alluded to the fact that it cannot be taken more than 30% as overall fuel mix.

Bata diya, bhai,

you cannot use. Kiln mein aap use kar hi nahi sakte na.

It's to be run on gas.

Correct. Sure.

I appreciate it. Just was trying to confirm it.

Secondly, a lot of other players would also be trying to secure this biofuel because it is coming at a lower cost, and also, the crop has also recently happened for mustard. Are you seeing any challenges in terms of procuring this material for producing the biofuel?

The only two plants in north are Somany and Orient. They are already using it.

As far as mustard is concerned, there is no challenge. The maximum production of mustard is in the state of Rajasthan, and plenty of mustard is available.

Got it. Second question, can you also give us some sense on how the growth trends are looking like in the month of April?

As we said earlier, we cannot give you month-to-month. First, our CFO already said that April quarter is normally weak.

Please try to understand two things. One, the Morbi plants are not producing at full capacity.

Rishi just said that from 16th of April, all Kajaria plants are running at full capacity. Whatever we lose in production for 15 days in Morbi plants has to be taken into account.

Morbi outsource plants are not running in full capacity. They will run as and when they are comfortable.

Chetan also said that right now, say, from certain plants we are buying only 20% the capacity. He cannot run 80% unless he has a source to sell.

That scenario will always be there. We cannot tell you what is happening in quarter one and on a daily basis.

What we have said, we are looking at a very positive growth.

Yes.

Not only we at Kajaria, I also said in my opening remark, organized players like Kajaria, Somany, and Johnson, who have plants all over the country, will get benefited by this process because there is a too much damage in Morbi. Please understand that.

You'll have a lot of information when you go out there that there's a lot of damage. Kya hoga, kya nahi hoga, nobody knows at this stage.

Sure.

Thank you so much, and all the best.

Thank you, sir.

Hi, sir. Congratulations on a good set of numbers.

Sir, just how much was the ad spend this year in FY26?

It was around, I think, ₹90 to ₹100 crore in the whole last year. We did it less as compared to the previous year because we did very hard negotiation.

This year, we are going to do much, much higher ad spend. Our new TVC has come.

We are just in the process of making plan on many channels, all regional channels and others. This year, the ad spend maybe 40% to 50% higher than what we spent in the...

We'll have a much more aggressive ad spend this year.

Okay. Second thing is, sir, the salary hikes which last year was not given to employees, as you had mentioned, this year have we taken a decision there?

Some action will be taken, but we have yet to take a call. Some action will definitely be taken in a positive manner because we are all part of the industry.

We understand. They also understand that you as Kajaria making money, we have to take a balanced call as we go along.

Okay. Sir, third thing is in last year Q1 call, Q1 FY26, you had mentioned that once we reach a run rate of ₹250 crores a quarter on the EBITDA front with ₹1,000 crore visibility, the salaries will be reinstated for the promoters.

Sir, anything there you can help us with?

We have decided not to take the salary this year as well.

Okay. Sir, means it's postponed till next year basically, whatever be the numbers for this year, right?

He did not say postponed for the next year. He said we will not take this year.

Okay. Fair enough, sir.

Thank you very much.

Thanks.

Thanks a lot. I think very good questions came out.

On behalf of all of us, I But also I would like to add one or two statements. I think great effort has been done by Chetan and Rishi as a team after unification.

I think they have done a lot of work in the last financial year along supported by Kartik in adhesive. I must say that it's been a tremendous effort by these three people in taking the company to this heights.

I am very positive that, going forward, the results will be even better. A lot of good questions came, and we have tried to do our best to reply them in the right...

Also

just to apprise you guys, we have kept a lot of good, senior people in the company. A new CHRO has joined.

A Chief Marketing Officer joined for the entire branding of the company. A new Chief Digital Officer has joined to take over the technology part of the company.

Kerovit as a brand has been struggling for a while. There also, we've got a couple of very senior people: a Chief Business Officer to look after the sales, an advisor who is heading the factory, both veterans of the industry.

We've also got a senior purchase guy. We've kept a lot of good people.

I think that is the reason which we are so confident that, going forward, because ultimately the team has to work, very confident that, going forward, we will achieve what we want to achieve. A good strong leadership team is in place now going forward.

Thank you.

Thank you.

Thank you.