Kajaria Ceramics Limited Earnings Summary — Q1 FY2027
Kajaria Ceramics Reports Strong Q1 Profit Growth and Announces Capacity Expansion
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 3.3% sequentially in Q1 FY2027.
- Revenue of ₹1,328 Cr is 20.4% higher year-on-year.
- Revenue has compounded at 4.3% annualised over the last 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹169 Cr is 55.5% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 25.1% annualised across the period.
- Operating margin stands at 19.6% in Q1 FY2027.
- Operating margin expanded by 266 bps year-on-year.
- Over the last two years operating margin has expanded by 422 bps.
- PBT margin is 17.4%.
- Expense growth of 16.6% remained below revenue growth of 20.4%.
- Operating profit of ₹260 Cr is 39.3% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 75/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 1,328 | 1,373 | 1,168 | 1,186 | 1,103 | 1,222 | 1,156 | 1,179 | 1,096 | 1,208 |
| Expenses | Stable | 1,068 | 1,110 | 968 | 973 | 916 | 1,083 | 1,003 | 1,023 | 927 | 1,036 |
| Operating Profit | Improving | 260 | 263 | 200 | 213 | 187 | 138 | 152 | 156 | 169 | 172 |
| Operating Margin | Improving | 19.6% | 19.2% | 17.2% | 18.0% | 16.9% | 11.3% | 13.2% | 13.2% | 15.4% | 14.3% |
| Other Income | Volatile | 18 | 9 | -28 | 15 | 12 | -11 | 4 | 10 | 5 | 15 |
| Interest | Improving | 5 | 6 | 6 | 6 | 5 | 6 | 7 | 5 | 3 | 5 |
| Depreciation | Stable | 42 | 42 | 42 | 42 | 44 | 43 | 40 | 41 | 42 | 42 |
| Profit Before Tax | Improving | 231 | 224 | 125 | 181 | 150 | 78 | 110 | 121 | 128 | 140 |
| Tax | Improving | 60 | 67 | 39 | 47 | 40 | 34 | 31 | 35 | 36 | 35 |
| Net Profit | Volatile | 169 | 156 | 88 | 133 | 109 | 43 | 78 | 84 | 90 | 102 |
| Net Margin | Volatile | 12.8% | 11.3% | 7.5% | 11.2% | 9.9% | 3.5% | 6.7% | 7.2% | 8.2% | 8.5% |
Key Takeaways
- Consolidated Net Profit for Q1 FY27 reached ₹171.03 crore, representing a 55% year-on-year increase despite sequential revenue pressure.
- Approved a major brownfield expansion at the Gailpur (Rajasthan) facility to add 11 MSM of Glazed Vitrified Tiles capacity at a cost of ₹165 crore.
- The Gailpur expansion is expected to be completed by April 2027 and will be financed entirely through internal accruals.
- Tiles segment revenue grew to ₹1,159 crore, while the 'Others' segment (Bathware/Adhesive) saw growth to ₹168.68 crore.
- Operating margins improved as management navigated gas price volatility through price hikes of 12-17% across different regions.
- Board approved a ₹12.15 crore investment in Sunsure Solarpark Fourty Three for captive renewable power supply to Rajasthan plants.
- Working capital cycle improved significantly to 51 days as of late FY26, aiding cash flow during the transition period.
Management Guidance
Management remains optimistic about FY27, citing strong demand momentum starting from January. They expect to maintain EBITDA margins between 18% to 19% under current scenarios and believe price hikes have largely covered increased fuel costs.
Sentiment Shift
Improving
Volume growth has accelerated following sales unification efforts, and the company is successfully passing through gas price inflation while maintaining full capacity utilization.
Outlook
The company expects a strong year ahead supported by real estate demand and the resolution of Morbi-related supply vacuums. The Gailpur expansion will significantly boost GVT production by early FY28.
From the Annual Report (Key Quotes)
“For us, the journey has just begun, and we remain optimistic about the current year's performance and beyond.”
“Margin, we are confident that with the current scenario, we should be maintaining between 18% to 19%.”
“We have taken a price increase of roughly 12% to 13% in our North plants and Morbi has been slightly higher around 16% to 17%.”
Official Quarterly Documents
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This summary is AI-generated from Kajaria Ceramics Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.