Kajaria Ceramics reported a robust Q2 FY27 performance with revenue growing 24% YoY to Rs 1,468 crore and profit rising to Rs 190 crore. Driven by 10% volume growth, the company is prioritizing market share through strategic brownfield expansions while managing volatile gas costs.
Kajaria Ceramics Posts Strong Q2 Growth on Higher Volumes
Revenue grew 24% YoY to Rs 1,468 crore with PAT reaching Rs 190 crore.
Reader Takeaway: Strong double-digit volume growth fuels profit, while volatile gas prices and subdued exports remain key pressure points.
What just happened
Kajaria Ceramics delivered a strong performance for the second quarter of FY27. The company recorded consolidated revenue of Rs 1,468 crore, marking a 24% increase compared to the same period last year. Profit After Tax (PAT) stood at Rs 190 crore, up from Rs 133 crore in the previous year. The company achieved this through a 10% year-on-year increase in sales volumes, highlighting steady demand across its core segments.
Why this matters
The results demonstrate that the company is successfully capturing market share despite inflationary headwinds. Segment-wise, the tiles division grew 23% to Rs 1,291 crore, while the bathware and adhesives segments saw growth of 22% and 69% respectively. Management's decision to maintain prices while driving volumes indicates a strategy focused on long-term competitive positioning.
Capacity and Expansion
Growth is supported by active expansion projects. The facility at Srikalahasti (12.5 MSM capacity) is on track for commissioning by June 2027, alongside expansion at Gailpur (11 MSM). These projects are central to the company's shift toward high-volume, low-cost production to maintain margins.
Risks to watch
Management highlighted two primary challenges: export demand remains hampered by high global freight costs and container shortages. Additionally, while the company is optimizing its energy usage, elevated gas spot prices continue to pose a risk to operating margins. Investors should monitor how effectively these costs are managed in the coming quarters.
What to track next
The company has maintained a volume growth guidance of 10% for the remainder of FY27. Market participants will be watching for the successful execution of the Srikalahasti and Gailpur capacity additions and whether domestic demand continues to offset the weakness in export markets.