Tiles segment set to feel near-term heat

Weak exports, lower demand in domestic mkt may impact margins

- RAM PRASAD SAHU

The tiles segment is facing a double whammy of falling exports and weak domestic demand, which are likely to weigh on its March quarter numbers.

Further, weak exports and lower volumes, as a consequence of reciprocal tariffs, could intensify competition in the domestic market, thus impacting margins.

Given multiple headwinds, the largest listed player, Kajaria Ceramics, saw its stock price declining 43 per cent over the last six months, followed by Somany Ceramics (down 41 per cent) and Cera Sanitaryware (down 32 per cent).

Near-term triggers, such as Q4 results and exports data, do not indicate a recovery in share prices any time soon.

While Kajaria Ceramics and Cera Sanitaryware are trading at 26-30 times their FY26 price-to-earnings estimates, Somany Ceramics trades at 16 times on the same metric.

Volumes in the March quarter saw marginal growth, given weak demand conditions in both the domestic and export markets.

The country's tiles exports were down 13 per cent year-on-year (Y-o-Y) in 9MFY25.