Kajaria Ceramics Ltd (KAJARIACER) Q1 FY27 Results Analysis: PAT Surges 74%, Margin Beats Guidance

Kajaria Ceramics Ltd reported Q1 FY27 numbers with revenue of Rs. 1,328.08 Cr (+20.42% YoY) and PAT growth of +73.88% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

KajariaCer delivered a strong Q1 FY27 with revenue up 20.4% YoY and PAT attributable to owners surging 73.9% YoY. EBITDA margin of 19.69% exceeded the guided range of 18-19%, driven by cost optimization and operating leverage. The company is executing well on capacity expansions and new growth drivers (adhesives, bathware), positioning for sustained outperformance.

Key Investment Insights

Key Positives

• Revenue grew 20.4% YoY to Rs.1,328.08 Cr, driven by strong demand.
• PAT attributable to owners grew 73.9% YoY to Rs.189.46 Cr.
• EBITDA margin expanded 267 bps YoY to 19.69%, above the guided range of 18-19%.
• Others segment (adhesives, bathware, sanitaryware) revenue grew 44.9% YoY, with segment margin nearly doubling to 12.29%.
• Cost of materials consumed declined 2.5% YoY despite higher volumes, reflecting favorable input costs.
• Employee benefits expense grew only 2.6% YoY, indicating cost discipline.
• Management's EBITDA margin guidance for FY27 was met in Q1 at 19.69%.
• Gailpur capacity expansion of 11 MSM at Rs.165 Cr announced, to be completed by April 2027, funded by internal accruals.

Risk Factors

• Gas prices surged in April 2026 (North Rs.62.5, South Rs.81, West Rs.79 per SCM), increasing power and fuel costs by 20.8% YoY, though passed through via price hikes.
• Bathware revenue for FY26 missed the Rs.480 Cr target by Rs.66 Cr, achieving only Rs.413.64 Cr.
• Inventory built up by Rs.17.03 Cr in Q1 FY27 vs a drawdown of Rs.37.65 Cr in Q1 FY26, indicating a working capital deployment.