
Kajaria Ceramics Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
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 analysisRevenue 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
Order book
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.
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