Kajaria Ceramics Q2 FY27 Profit Rises, Expands Capacity

Q2 performance remains ahead of last year

Kajaria Ceramics reported consolidated revenue of ₹1,468.26 crore in the second quarter, with net profit of ₹190.72 crore. Both revenue and profit were higher than their respective levels a year earlier. The update follows a strong first-quarter operating performance, when the company benefited from improved tile realisations and higher sales. The latest numbers also come alongside expansion plans across tile and adhesive capacity. Kajaria has declared an interim dividend of ₹12 per share.

H1 cash flow strengthens

Operating cash flow for the first half rose to ₹371.03 crore. The higher cash generation provides support for the company’s announced capacity investments while also allowing it to pay an interim dividend. Cash flow is an important metric for a manufacturer because capacity additions require sustained spending on plants, equipment and working capital. Kajaria has not provided a detailed H1 segment-wise financial breakdown in the available information. Still, the reported operating cash flow indicates improved internal funding availability during the first half.

First-quarter earnings set the backdrop

In Q1 FY27, Kajaria reported consolidated net sales of ₹1,328.1 crore, up 20.4% year on year. EBITDA rose 39.3% year on year to ₹260.4 crore, while adjusted profit after tax increased 55.5% to ₹169.5 crore. Motilal Oswal said Q1 revenue was 10% above its estimate, EBITDA was 20% above estimate and adjusted PAT was 27% above estimate. Earnings per share also exceeded analyst expectations by 21%, according to the available update.

Price-led tile revenue growth offsets volume constraint

Tile sales volume in Q1 increased 6% year on year to 28.8 million square metres. This was below Motilal Oswal’s estimate of 8% growth because gas unavailability constrained production. However, tile revenue rose 17.8% to ₹1,161.5 crore. Blended tile net sales realisation increased 11.1% year on year to ₹403 per square metre, following price increases intended to offset higher gas costs. The data shows that improved realisation played a significant role in revenue growth despite lower-than-expected volume expansion.

Key financial and operating figures

FY27 guidance focuses on volume and value

Management has targeted more than 20% tile-revenue growth in FY27. Its plan is to split this broadly equally between volume growth and value growth. The company expects a healthier volume recovery in the second half and has guided for double-digit tile-volume growth over the final three quarters of FY27. It has maintained EBITDA margin guidance of 18-19% for the year. Management also expects EBITDA to exceed ₹1,000 crore.

Bathware business has a higher growth target

Kajaria has guided for sanitaryware and faucetware revenue growth of 35-40% in FY27. The available information attributes support for this outlook to 15-17% price-led growth. The bathware target is materially higher than the company’s stated tile-revenue growth objective. This makes execution in sanitaryware and faucetware relevant to the company’s overall mix and growth profile during the year. No separate Q2 revenue or profit data for these businesses was included in the supplied information.

Tile capacity projects move toward commissioning

The company has planned FY27 capital expenditure of ₹400 crore to add about 20 million square metres of GVT tile capacity. A ₹165 crore expansion at Gailpur, Rajasthan, is expected to add 11 million square metres of GVT capacity by April 2027. A separate ₹210 crore Srikalahasti project is on track to add 10 million square metres by March 2027. These projects are intended to expand manufacturing capacity after commissioning. The announced schedule places the Srikalahasti commissioning before the Gailpur project.

Investor estimates were revised after Q1

Following the Q1 performance and management guidance, Motilal Oswal raised its FY27E revenue estimate by 9%, EBITDA estimate by 15% and PAT estimate by 18%. For FY28E, it raised revenue by 8%, EBITDA by 11% and PAT by 10%. The broker forecasts FY26-28 compound annual growth of 10% in tile volume, 16% in revenue, 18% in EBITDA and 23% in PAT. These are broker forecasts rather than company guidance or reported results.

Q2 investor call has been rescheduled

Kajaria announced that its conference call with Asian Market Securities to discuss Q2 FY27 results has been rescheduled from October 21 to October 26, 2026, at 9:00 a.m. IST. The call is expected to provide investors with management commentary on Q2 performance and the outlook. The reported Q2 revenue, profit, H1 operating cash flow, dividend and capacity plans place the discussion in focus. Investors will also look for updates on tile volumes, gas availability, pricing and the progress of the Gailpur and Srikalahasti projects.