Kajaria Ceramics reported a 37.7% rise in standalone profit to Rs 166.28 crore for Q2 FY27, driven by a 23.4% growth in revenue. The company announced an interim dividend of Rs 12 per share, payable by November 22, 2026. Simultaneously, the management unveiled a massive capacity expansion roadmap, investing Rs 554 crore across its Srikalahasti, Gailpur, and Durgapur facilities to scale manufacturing by 2027.
Kajaria Ceramics Q2 Profit Jumps 38% on Robust Revenue Growth
Standalone profit reached Rs 166.28 crore compared to Rs 120.72 crore in Q2 FY26. Revenue from operations climbed 23.4% YoY, hitting Rs 1,331.90 crore for the quarter.
Reader Takeaway: Strong double-digit growth and dividend payout signal health, while expansion execution remains the primary long-term monitorable.
What just happened
Kajaria Ceramics delivered a strong second-quarter performance for FY27, marked by a 37.7% jump in net profit. The company also rewarded shareholders with an interim dividend of Rs 12 per equity share. The record date for this payout is set for October 29, 2026, with disbursements scheduled on or before November 22, 2026.
Strategic Expansion Plans
Management has committed Rs 554 crore toward three key infrastructure projects to bolster future volumes:
- Srikalahasti: Rs 340 crore investment to add 12.50 MSM capacity by June 2027.
- Gailpur: Rs 180 crore for an 11 MSM capacity expansion by April 2027.
- Durgapur: Rs 34 crore for a new 9,000 MT/month tile adhesive facility by December 2027.
Funding for these initiatives will be managed through a mix of internal accruals and existing bank facilities.
Acquisition and Exceptional Items
Kajaria Ceramics consolidated its presence in the bathware segment by acquiring the remaining shares of Kajaria Bathware Private Limited (KBPL) for Rs 50 crore, making it a wholly-owned subsidiary. On the balance sheet side, the company recognized a Rs 5.09 crore exceptional item related to impairment provisions for its investment in Kajaria International FZCO.
Risks to watch
While the financial trajectory is positive, investors should keep a close eye on the execution timelines for the Srikalahasti and Gailpur plants. Any delays in commissioning could impact volume targets for FY28. Additionally, the tiles industry remains sensitive to raw material cost fluctuations and real estate demand cycles.
What to track next
The focus shifts to the upcoming operational milestones. The commissioning of the Durgapur tile adhesive facility by late 2027 and the large-scale tile expansions earlier in the year will be critical drivers for maintaining market share and supporting the company's margin profile.