Kajaria Ceramics shares trade higher; company reports fraud in a subsidiary: All details you must know

In its regulatory filing on Friday, post-market hours, it said that Dilip Kumar Maliwal, chief financial officer (CFO) of Kajaria Bathware Private Limited, a wholly-owned subsidiary (‘KBPL’) of the company, was found to have committed a fraud over a period of the last two years.

However, the stock, in the morning trade, was trading over 0.5% higher at ₹1,060.40 on the NSE.

The fraud was committed by way of embezzlement and syphoning of funds of Kerovit Global Private Limited, a wholly-owned subsidiary (‘WoS’) of KBPL, which is a step-down WoS of the company.

Will the fraud impact Kajaria Ceramics?

Kajaria Ceramics said that a loss due to the said fraud in KGPL will impact the company, being the ultimate holding company of KGPL.

Amount involved

The company said that the estimated amount involved is ₹20 crore.

Whether such fraud/default/arrest has been reported to the appropriate authorities?

Yes, a complaint has been filed with the Deputy Commissioner of Police, Economic Offence Wing, Delhi Police, New Delhi, and the Station House Officer, Police Station Badarpur, New Delhi, on December 18, 2025, immediately on unearthing the said fraud, which is under investigation.

Corrective measures taken by Kajaria Ceramics

Apart from filing the complaint with the police, KBPL has terminated Dilip Kumar Maliwal from the service of KBPL.

The matter will be put up before the appropriate committee of the Board of Directors for taking further steps to ensure appropriate safeguards are put in place so as to avoid such an incident in the future.

About Kajaria Ceramics

Kajaria Ceramics Limited is a leading manufacturer of ceramic/vitrified tiles. The company's segments include Tiles and Others.

The Tiles segment is engaged in the manufacturing and trading of ceramic and vitrified wall and floor tiles. The Others segment is engaged in the manufacturing of sanitaryware and faucets and the trading of plywood and laminates.

Its product categories include glazed vitrified tiles (Eternity), ceramic wall and floor tiles, polished vitrified tiles and tile adhesives.

The company's wall tile product categories include bathroom, kitchen, outdoor, living room, bedroom and wall tiles for commercial spaces.

Its floor tile product categories include living room, outdoor, bedroom, kitchen, bathroom and floor tiles for commercial spaces.

The company's Eternity glazed vitrified tiles include admiral brown, bolivia grey, ambrosia, ambrosia decor, apollo grey, astonia bronze, astonia nero and blossom beige decor.