Kajaria Ceramics Q2 FY27 Results (NSE: KAJARIACER)
Signal: Margin expansion
The read
This is the fifth consecutive quarter of consolidated margin expansion in the supplied series, with operating margin rising to about 20.2% as revenue growth accelerated to 23.8% YoY; the key thesis shift is now execution of ₹554 Cr of tile capacity additions plus the ₹34 Cr adhesive plant, not merely recovery from the FY25 margin trough.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,468.26 Cr | +23.8% | +10.6% |
| EBIT | ₹286.61 Cr | N/A | |
| Net profit | ₹190.72 Cr | +42.9% | |
| EPS | ₹12.02 | +43.9% | |
| EBIT margin | 19.5% |
P&L walk
Revenue accelerated to ₹1,468.26 Cr (+23.8% YoY, +10.6% QoQ), while PAT reached ₹190.72 Cr (+42.9% YoY) as operating margin expanded to about 20.2%; lower finance cost also supported conversion.
Segments
No segment results table was disclosed, but the consolidated PAT of ₹190.72 Cr exceeded standalone PAT of ₹166.28 Cr by ₹24.44 Cr, showing a material contribution from subsidiaries and joint ventures.
Key positives
- Consolidated revenue reached ₹1,468.26 Cr, up 23.8% YoY and 10.6% QoQ, accelerating sharply from the 0.6%-1.0% YoY growth recorded in Q1-Q3FY26.
- Operating margin expanded to about 20.2%, the fifth consecutive quarter of YoY margin expansion in the supplied results series.
- PAT rose 42.9% YoY to ₹190.72 Cr while finance cost fell 51.9% YoY to ₹5.28 Cr, improving earnings conversion.
- Srikalahasti and Gailpur plants were both reported at 100% existing capacity utilisation, providing a clear capacity-addition runway of 23.50 MSM.
Key concerns
- The Srikalahasti investment estimate increased from Rs. 210 crores to Rs. 340 crores, raising execution and return-on-capital risk.
- The new expansion programme commits an estimated ₹554 Cr across Srikalahasti and Gailpur, plus ₹34 Cr for Durgapur adhesive capacity, making capex delivery and utilisation key future variables.
- Consolidated earnings are materially above standalone earnings by ₹24.44 Cr of PAT in the quarter, increasing the importance of subsidiary and joint-venture execution.
Research and educational content only. Not investment advice.