Kajaria Ceramics Raises Revenue 24% to 1,468.26 Crore Rupees in Second Quarter
Key Facts
Kajaria Ceramics announced unaudited financial results for the second quarter and first half of fiscal 2026-27, ended September 30, following their approval at a board meeting on October 24, 2026. Consolidated revenue for the quarter was 1,468.26 crore rupees, compared with 1,186.56 crore in the corresponding period of the previous fiscal year. Consolidated profit after tax also rose to 189.52 crore rupees from 132.96 crore. The announcement came as the company recorded growth in tile volumes and operating margins, alongside approval of an interim dividend and plans to increase production capacity.
The company said in an investor update that consolidated tile sales volume reached 31.81 million square meters in the second quarter, compared with 28.87 million a year earlier. For the first half, sales reached 60.62 million square meters, versus 56.05 million in the same period of the previous fiscal year. The chairman attributed quarterly sales volume growth to improved demand and market share gains, citing a 10% year-on-year increase. The company said consolidated revenue rose 24% to about 1,468 crore rupees, supported by good volumes and a positive market response to price increases. The quarterly figures reflect simultaneous improvement in volumes and revenue compared with the corresponding period.
Consolidated revenue in the first half was 2,796.34 crore rupees, compared with 2,290.89 crore in the first half of the previous fiscal year. Half-year profit after tax rose to 358.98 crore rupees from 241.94 crore. Earnings before interest, tax, depreciation and amortization were 286.50 crore rupees in the second quarter, up from 212.90 crore a year earlier. Its margin increased to 19.51% from 17.94%, while the company said the quarterly margin was 19.5%. The results place revenue and profit growth alongside an improvement in margins, with the company attributing part of revenue growth to the market's response to price increases.
By contrast, the company said export demand remained weak during the first half of fiscal 2026-27, while higher freight costs and limited container availability continued to pressure manufacturers in Morbi. These challenges show that improved domestic demand and market share gains came during a period when export-oriented manufacturing faced logistical constraints. The company said its Kajaria Vitrified plant in Morbi, which specializes in polished tiles, operated at optimal capacity in the second quarter. The plant has annual capacity of 8.90 million square meters. The company presented this operating performance alongside sales expansion, while pointing to continuing export and freight challenges in the region.
The board approved an interim dividend of 12 rupees per equity share and set October 29, 2026, as the record date. The dividend is scheduled to be paid no later than November 22, 2026. The company also approved adding annual capacity of 12.50 million square meters of glazed tiles in Srikalahasti, with an estimated investment of 340 crore rupees and completion expected by June 2027. The plan expands production capacity through a new project, with a specified completion date as part of its plans for the next fiscal year.
Expansion plans also include adding 11 million square meters a year to the capacity of the Gilbhor plant, at an estimated investment of 180 crore rupees, with the project due for completion by April 2027. In Durgapur, West Bengal, the company plans to build a new tile adhesive plant with capacity of 9,000 tonnes a month, at an estimated investment of 34 crore rupees, with completion expected by December 2027. The projects set successive dates for increasing tile and adhesive capacity during 2027. The next near-term step for shareholders is the dividend record date on October 29, followed by payment scheduled no later than November 22.