Kajaria Q1: consolidated PAT +55% YoY to ₹171 Cr on margin expansion, volume gains
PAT +55.05% YoY · revenue +20.43% · margins expanding
₹1,328.08 Cr
+20.43% YoY
₹171.03 Cr
+55.05% YoY
12.71%
+2.8pp YoY
₹10.64
Kajaria Ceramics opened FY27 with a strong print. Consolidated revenue rose 20.4% YoY to ₹1,328.08 Cr and net profit jumped 55% YoY to ₹171.03 Cr (₹110.31 Cr a year ago), with net margin widening to ~12.9% from ~10.0%. The sequential optics (revenue −3.3%, PAT +9.2% QoQ) are the normal seasonal step-down from a peak March quarter and are not the story — the YoY acceleration is. Standalone tells the same story (revenue +18.1%, PAT +56.3% YoY to ₹155.77 Cr), so basis divergence is immaterial.
Q1 FY-2027 vs prior quarters
The driver is the volume and market-share tailwind management flagged on the Q4 call — gains from the Morbi supply disruption — feeding an operating-margin expansion to roughly 19.6% (segment operating profit ~₹218 Cr plus depreciation over revenue) from ~17% a year ago. That sits at or above the 18-19% EBITDA band management guided while promising to manage volatile gas prices via price hikes, so the quarter delivers on both the volume-growth and margin commitments made in April — a beat on the margin line. No formal numeric consensus for the June quarter surfaced in public brokerage previews, so the print cannot be graded against a street number here; the read is against management's own guidance, which it met/beat.
The stock went into the print at ₹1,220.6, up 1.4% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 2 consecutive quarters.
Management projects a very positive year ahead, expecting volume growth to be significantly better than the previous year, driven by strong demand and market share gains from disruptions in Morbi. While no specific volume target was given, they are confident in maintaining EBITDA margins between 18% and 19% by managing
— This quarter: beat
The board paired the result with growth and capital-return actions. It approved an 11 MSM brownfield expansion at Gailpur (~₹165 Cr from internal accruals, on-stream by April 2027), notable because existing 35.95 MSM capacity is running at 100% utilisation — capacity, not demand, is the near-term constraint. It also cleared a small ₹12.15 Cr captive solar/wind investment aimed at cutting power cost at the Gailpur and Malootana plants. Separately, the ₹296.7 Cr buyback (21.5 lakh shares at ₹1,380) completed and shares were extinguished, trimming the base to ~15.71 Cr shares. The one soft note is the CHRO resignation (health reasons, effective 27 July); management framing beyond the filing is not available as no press release was extracted.
W1
Gailpur 11 MSM brownfield expansion (~₹165 Cr) completion by April 2027 — key as current 35.95 MSM capacity is 100% utilised
W2
Holding operating margin in/above the guided 18-19% band through FY27 amid volatile gas prices (delivered ~19.6% in Q1)
W3
Durability of Morbi-driven volume/market-share gains that lifted revenue +20% YoY in coming quarters
Clean print, no exceptional items this quarter (year-ago Q1 also nil, so YoY is unadjusted). Consolidated PAT ₹171.03 Cr includes discontinued ops (Kajaria Plywood, −₹0.05 Cr) and NCI ₹1.57 Cr; owners' share ₹169.46 Cr. Printed consolidated 'Total income' reads 1,346.22 in OCR but revenue+other income and the internal PBT build both reconcile to 1,345.22 — 1-Cr OCR misread, used 1,345.22. EPS is consolidated basic (continuing+discontinued).