Kajaria Ceramics (500233) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue rose 24% YoY to ₹1,468.26 crore; tile sales volume increased 10%, supported by stronger demand and market-share gains.

• Consolidated EBITDA margin improved to 19.51% from 17.94% in Q2 FY26; consolidated profit for the period was ₹190.72 crore, while reported PAT was ₹189.52 crore.

Financial highlights

• Q2 consolidated EBITDA was ₹286.50 crore, up 35% YoY; H1 EBITDA increased 38% to ₹546.83 crore.

• H1 consolidated revenue rose 22% YoY to ₹2,796.34 crore; profit for the period was ₹361.75 crore versus ₹244.29 crore.

• Q2 consolidated PBT before JV share, exceptional items and tax was ₹253.88 crore, up 41% YoY; H1 was ₹484.11 crore, up 47%.

• H1 net cash generated from operating activities was ₹371.03 crore versus ₹220.79 crore YoY.

Outlook and guidance

• Management expects double-digit volume growth over the coming six months and targets 10% volume growth for the remaining nine months of FY27; margins are expected near 19%.

• Srikalahasti expansion adds 12.5 MSM capacity for ₹340 crore, with completion expected by June 2027; Gailpur adds 11 MSM for ₹180 crore, due by April 2027.

• A 9,000 MT/month Durgapur adhesive plant, estimated at ₹34 crore, is expected to be completed by December 2027.

• Tile sales are expected to rise from 130 million sqm this year to 145 million sqm next year; outsourced volume is projected to fall from 42 million sqm to 36–37 million sqm.

• Gas-cost reductions are targeted from January through cheaper sourcing and shorter firing cycles; new plants are expected to improve cost efficiency, freight costs and operating leverage.