Kajaria Ceramics Q2 FY27 results: net profit up 42.3% to ₹190.72 crore, revenue up 23.8%

How did Kajaria Ceramics perform in Q2 FY27?

Kajaria Ceramics’ consolidated Q2 FY27 revenue was ₹1,468 crore, up 23.8% from ₹1,186 crore in Q2 FY26. EBITDA rose 34.3% to ₹286.61 crore, taking the margin to 19.5% from 18.0%. Net profit was ₹190.72 crore, up 42.3%, while basic EPS increased 44.0% to ₹12.02.

Against Q1 FY27, revenue increased 10.6% to ₹1,468 crore from ₹1,328 crore and EBITDA rose 10.1% to ₹286.61 crore from ₹260.38 crore. The margin was 19.5%, compared with 19.6% in the previous quarter. Net profit rose 11.5% to ₹190.72 crore and basic EPS increased 13.0% to ₹12.02.

On the standalone basis, revenue was ₹1,331.9 crore and profit after tax was ₹166.28 crore, against ₹120.72 crore in the year-ago quarter. The board approved both standalone and consolidated unaudited results for the quarter and half year ended 30 September 2026.

What changed in Kajaria Ceramics' costs and profit?

Total expenses increased 20.6% year on year to ₹1,230 crore. Cost of materials was ₹288.18 crore, up ₹34.30 crore, employee cost rose ₹10.25 crore to ₹140.77 crore, and other expenses increased ₹103.48 crore to ₹435.22 crore. Finance costs fell ₹0.50 crore to ₹5.28 crore, while depreciation rose ₹1.21 crore to ₹43.10 crore.

Other income increased ₹0.29 crore to ₹15.76 crore. The quarter included an exceptional charge of ₹1.55 crore, against no exceptional item in Q2 FY26. Profit before tax rose 39.3% to ₹252.44 crore, while tax increased ₹17.03 crore to ₹64.22 crore.

Management said the quarter’s 10% year-on-year volume growth was led by better demand and gains in market share. It also said the market’s positive response to price hikes supported revenue. The company did not provide a fuller explanation of the year-on-year movement in other expenses in the cited filings.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue rose 22.2% to ₹2,796.34 crore from ₹2,288.75 crore. Total income increased 22.1% to ₹2,829.24 crore, while profit before tax rose 45.2% to ₹482.72 crore. Net profit increased 48.1% to ₹361.75 crore and basic EPS rose 49.2% to ₹22.66.

The first-half results included revenue of ₹2796.34 crore and profit after tax of ₹361.75 crore in the company’s consolidated presentation, compared with ₹2290.89 crore and ₹241.94 crore in H1 FY26, respectively.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹4,192.25 crore, against ₹4,029.21 crore at 31 March 2026. Total equity declined to ₹3,055.23 crore from ₹3,130.48 crore, while borrowings rose to ₹305.6 crore from ₹130.32 crore. Cash fell to ₹13.62 crore from ₹55.94 crore.

Inventories increased to ₹579.67 crore from ₹551.46 crore, trade receivables rose to ₹711.16 crore from ₹628.47 crore, and trade payables increased to ₹356.56 crore from ₹319.51 crore. H1 FY27 operating cash flow was ₹371.03 crore, compared with ₹220.79 crore in H1 FY26.

Capital expenditure was ₹99.94 crore in H1 FY27, against ₹62.08 crore a year earlier. Investing cash flow was -₹123.46 crore, compared with -₹225.41 crore, while financing cash flow was -₹289.89 crore against -₹5.62 crore.

How has Kajaria Ceramics done over the last 8 quarters?

Revenue in the latest eight-quarter series bottomed at ₹1,102.74 crore in Q1 FY26 and reached its peak of ₹1,468.26 crore in Q2 FY27. Net profit bottomed at ₹43.18 crore in Q4 FY25 and reached its peak of ₹190.72 crore in Q2 FY27.

The EBITDA margin bottomed at 11.3% in Q4 FY25 and peaked at 19.6% in Q1 FY27 before easing to 19.5% in Q2 FY27. Revenue rose year on year in each of the last five quarters, while profit rose year on year in each of the last six quarters.

Which businesses drove the quarter?

Tiles remained the main business, with Q2 FY27 revenue of ₹1,284.87 crore, up 18.6% from ₹1,083.62 crore in the year-ago quarter. Segment EBIT was ₹225.28 crore, compared with ₹168.43 crore, and the EBIT margin was 17.5%.

The Others segment reported revenue of ₹183.39 crore, up 79.1% from ₹102.39 crore. EBIT increased to ₹18.23 crore from ₹3.13 crore, while the EBIT margin was 9.9%. Management said Q2 FY27 volume growth was led by better demand and market-share gains.

What else did the company announce?

The board approved an interim dividend of Rs. 12 per equity share of Re. 1 each for FY27. The record date was 29 October 2026, and the company said payment would be made on or before 22 November 2026.

The board also approved expansions costing Rs. 554 crore. Srikalahasti in Andhra Pradesh will add 12.50 MSM of annual glazed vitrified tile capacity at an estimated investment of Rs. 340 Crores, with completion expected by June 2027.

Gailpur in Rajasthan will add 11 MSM of annual tile capacity at an estimated investment of Rs. 180 Crores, with completion expected by April 2027. A new tile-adhesive plant in Durgapur, West Bengal, will have 9000 MT per month capacity at an estimated investment of Rs. 34 Crores and is expected by December 2027.

What did Kajaria Ceramics' management say?

Management maintained guidance for double-digit volume growth over the next six months and the next two quarters. It expects the EBITDA margin to remain around the current approximately 19% and said no gas-driven price hike was planned. Gas costs are expected to decline significantly from January through cheaper sourcing and firing-cycle savings, according to management.

For FY28, management expects tile volume to remain double-digit and value growth to be roughly equal to volume growth because FY27 benefited from inflation. It targets adhesive revenue of approximately ₹400 crore and total sales of about 145 million sqm, with outsourcing declining to roughly 36–37 million sqm after capacity additions.

Management said the 12.5 million sqm Srikalahasti capacity is targeted for commissioning by end-June 2027. It also identified subdued export demand, tight gas availability, and depressed bathware margins due to low utilisation at a newer plant as risks. Chairman Ashok Kajaria said exports remained subdued because of elevated freight rates and limited container availability.

How did Kajaria Ceramics shares react?

After the filing appeared after market hours, the stock fell 2.4% in five minutes, 2.2% in 15 minutes and 1.7% in 30 minutes. It closed the reaction day 1.6% below its pre-results close, while the Ceramics industry median rose 2.3%, leaving Kajaria Ceramics 3.8 percentage points behind the sector.

By the next day’s close, the stock was up 0.8% from its pre-results close. The Ceramics median gain was 3.9% over the same period, while the Nifty Smallcap 250 rose 3.3%. By the fifth-session close, the stock was down 1.1% from its pre-results close, versus a 3.6% median rise for the industry.

Earlier reaction-day moves were mixed: the stock rose 1.2% on 31 July 2026 and 1.4% on 30 January 2026, but fell 3.9% on 30 April 2026 and 3.1% on 6 May 2025. The largest move in the listed earlier reactions was a 5.2% fall on 22 October 2024.