26-Oct-2026 13:26:21
KAJARIA CERAMICS Q2 CONCALL : EXPECTS DOUBLE-DIGIT TILE VOLUME GROWTH IN NEXT TWO QUARTERS, TARGETS 19% EBITDA MARGINS & EXPANDS MANUFACTURING CAPACITY
• MANAGEMENT EXPECTS DOUBLE-DIGIT TILE VOLUME GROWTH DURING Q3 & Q4 FY27, SUPPORTED BY IMPROVING DEMAND • CONSOLIDATED REVENUE UP 9.6% YOY TO ₹1,420.5 CR, WHILE EBITDA UP 10.8% YOY TO ₹269.9 CR • NET PROFIT UP 12.4% YOY TO ₹311 CR, SUPPORTED BY HIGHER VOLUMES & IMPROVED PRODUCT MIX • EBITDA MARGIN AT 19%, DOWN 20 BPS YOY & QOQ; MANAGEMENT AIMS TO MAINTAIN MARGINS AROUND 19% • TILE VOLUMES UP 7.9% YOY, WHILE AVERAGE REALIZATION IMPROVED 1.6% YOY, SUPPORTED BY PREMIUM PRODUCTS • MANAGEMENT EXPECTS DEMAND TO IMPROVE DURING H2 FY27, SUPPORTED BY FESTIVE SEASON, WEDDING DEMAND & HOUSING ACTIVITY • COMPANY EXPANDING MANUFACTURING CAPACITY AT SRIKALAHASTI, WITH FOCUS ON GLAZED VITRIFIED & LARGE-FORMAT TILES • GAILPUR CAPACITY EXPANSION EXPECTED TO SUPPORT HIGHER PRODUCTION VOLUMES & PREMIUM PRODUCT MIX • MANAGEMENT EXPECTS NEW CAPACITY TO SUPPORT DOUBLE-DIGIT VOLUME GROWTH, WITH PHASED COMMISSIONING OF EXPANSION PROJECTS • PREMIUM & VALUE-ADDED PRODUCTS EXPECTED TO INCREASE THEIR REVENUE CONTRIBUTION, SUPPORTING BETTER REALIZATIONS & PROFITABILITY • SANITARYWARE VOLUMES RECORDED DOUBLE-DIGIT GROWTH, WHILE FAUCET BUSINESS MAINTAINED POSITIVE GROWTH MOMENTUM • COMPANY PLANS TO EXPAND DEALER NETWORK ACROSS INDIA, PARTICULARLY IN TIER-2, TIER-3 & UNDERPENETRATED MARKETS • MANAGEMENT EXPECTS GRADUAL IMPROVEMENT IN EXPORT VOLUMES, WITH FOCUS ON HIGH-VALUE PRODUCTS & INTERNATIONAL MARKET EXPANSION • FUEL & RAW MATERIAL COSTS REMAIN RELATIVELY STABLE; MANAGEMENT CONTINUES TO FOCUS ON COST OPTIMIZATION, AUTOMATION & MANUFACTURING EFFICIENCY • OPERATING CASH FLOW AT ₹286.4 CR, NET DEBT/EQUITY AT 0.08X & ROCE AT 21.4%; DEMAND UNCERTAINTY, INPUT COST INFLATION & CAPACITY EXPANSION EXECUTION REMAIN KEY RISKS
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