Kajaria Ceramics (KJC IN) – Event Update – Vendor fraud identified, controls tightened – HOLD
Published on 22 Dec 2025
We attended the conference call hosted by Kajaria Ceramics (KJC) to discuss the fraud incident within its bathware subsidiary chain. Management stated that a limited vendor-related fraud at Kerovit Global Private Limited (KGPL), a step-down wholly owned subsidiary, was identified during the rollout of a strengthened digital vendor onboarding framework and CWIP reconciliation. The fraud involved embezzlement and fund siphoning by Mr. Dilip Kumar Maliwal, CFO of Kajaria Bathware Private Limited (KBPL), a wholly owned subsidiary of KJC. Corrective actions include termination of the executive, filing of police complaints, a potential forensic review, and recognition of ~Rs 200mn as an exceptional item in FY26, with partial recovery already initiated. The company emphasized that the incident is isolated and the financial impact remains limited. We upward our FY27E earnings estimate by 1.3% and downward FY28E earnings estimate by 2.0% and roll forward it to Dec’27 with a TP of Rs 1,083 (Earlier Rs 1,288). We have considered 5.0% CAGR in tiles volume over FY25-28E with EBITDA margin of 17.0% in FY28. We expect Revenue/EBITDA/PAT CAGR of 6.8%/15.3%/20.7% over FY25-28E. Maintained ‘HOLD.’
