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Kajaria CeramicsQ1 FY27Consumer Durables
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Kajaria Ceramics Q1 FY27 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,199P/E: 32.9Market Cap: ₹19.0K CrSector: Consumer Durables

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3
  • →Kajaria expects double-digit volume growth for the next 9 months, driven by strengthened distribution and increased project sales.
  • →The company is confident about 35-40% value growth in the sanitaryware and faucet segment, fueled by a mix of 15-16% price hikes and volume increase.
  • →Overall revenue is projected to see robust growth, with tiles segment revenue up 18% year-on-year in Q1 FY27 and bathware revenue growing 33%.
  • →Expansion capex at Gailpur and Srikalahasti plants aims to increase capacity and meet projected demand, supporting turnover increases of INR400-450 crores at these facilities.
  • →Increased dealer network and exclusive Kajaria dealers will contribute to growth, with focus on retail and institutional channels.
  • →The company sees positive demand comeback since May-July 2026, making it optimistic about medium-term growth over the next 3 years.

Margin guidance

Category 3
  • →Management is confident of double-digit volume growth in the next 9 months, indicating strong sales momentum.
  • →For the full year, they target an EBITDA margin of around 18%-19%, with INR1,000+ crores EBITDA expected.
  • →Bathware (sanitaryware and faucet) segment is expected to face margin challenges this year due to restructuring but forecasts better profitability next year.
  • →Overall company blended EBITDA margin guidance is ~18%-19%.
  • →Price hikes and volume growth together are expected to drive 35%-40% value growth in Bathware.
  • →Operating efficiencies and new capacity expansions are expected to improve returns and margins over time.
  • →Earnings growth supported by expanded capacity, improved dealer productivity, and increased institutional sales.
  • →Promoter remuneration remains on hold for the current year; no immediate impact on profits expected from this.

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Fundraise plans

The transcript on page 16 and surrounding pages does not mention any current or planned fundraising through debt or equity. Key points related to funding and capex are: - Kajaria Ceramics is undertaking capex of around INR 400 crores this year for expansion (INR 210 crores for Srikalahasti and INR 165 crores for Gailpur plants), financed internally. - No specific mention of raising funds through debt or equity in this transcript. - The company is focused on growth, margin improvements, and expanding capacity using existing resources. - Promoter remuneration remains withheld this year, indicating a focus on conserving cash. - No discussion on external fundraising or capital raising plans. Therefore, no current or immediate future fundraising through debt or equity is indicated in this document.

Order book

The transcript from Kajaria Ceramics Limited does not explicitly mention the current or expected order book or pending orders in quantitative terms. However, from the management commentary, relevant points related to demand and order momentum include: - Strong and improving demand seen since May and June after a soft April, with double-digit volume growth expected for the next 9 months. - Market demand in North and Eastern markets has increased, driving capacity expansions. - Positive traction from retail as well as institutional segments, with increased focus on projects leading to additional market share. - Major breakthrough with two large builders in India, securing a lion's share of their requirements. - Expansion in manufacturing capacity planned to meet growing demand, including new state-of-the-art plants. In summary, management expresses strong confidence in robust order inflows driven by both retail and institutional growth, supported by strategic expansions.

Capex plans

Yes
  • →Two major capex projects underway:
  • → - Srikalahasti expansion in South India: INR 210 crores for a new 8.5 lakh sq. ft. shed and plant.
  • → - Gailpur (Bhiwadi, Rajasthan) expansion in North India: INR 165 crores for 11 million sqm capacity increase, extension of existing shed.
  • →Both plants to use latest technology, improving capex and opex efficiency with significantly larger capacities (e.g., 340-meter kiln vs. previous 200-meter kiln).
  • →Total capex planned for FY 2026-27: ~INR 400 crores including maintenance.
  • →Capex is ROC-accretive with expected higher margins compared to current manufacturing and outsourcing.
  • →Strategic focus on adding capacity to meet growing demand, especially in North and East markets where demand for Kajaria products is rising due to narrowing price gap with Morbi.
  • →Outsourcing remains a tool to meet demand but will reduce once new plants become operational.

How does Kajaria Ceramics rank vs peers in Consumer Durables?

Pro feature
1Kajaria Ceramics
Rev 3Mar 3
2Consumer Durables Company A
Rev 1Mar 2
3Consumer Durables Company B
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4Consumer Durables Company C
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What Kajaria Ceramics's management said in earlier quarters

  • Q1 FY27 earnings call analysis →
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