Kajaria Ceramics delivered exceptional financial performance in the June 2026 quarter, with consolidated net profit surging 56% to ₹169.46 crore compared to ₹108.98 crore in the corresponding quarter of the previous year. According to reports from Business Standard, this represents a significant improvement in the company's bottom-line performance during the first quarter of fiscal 2026. The strong profit growth was achieved despite subdued tile volume growth of 6% YoY, which was impacted by lower production amid gas unavailability issues.
The company's sales revenue increased by 20.43% to ₹1,328.08 crore in Q1 FY2026, up from ₹1,102.74 crore in the same period last year. As reported by Business Standard, this revenue growth demonstrates the company's ability to expand its market presence and maintain strong demand across its product portfolio. Recent market data shows revenue has been growing consistently, increasing from ₹1,170 crore to ₹1,380 crore over the last two quarters with an average growth of 14.9% per quarter. The revenue growth was majorly driven by better realization, with tiles seeing approximately 11% increase and bathware achieving 16% growth, following a surge in gas prices amid geopolitical tensions in the Middle East.
Operating profit margin (OPM) improved to 19.61% in the June 2026 quarter compared to 16.95% in the corresponding quarter of the previous year. According to the financial data reported by Business Standard, this margin expansion indicates better cost management and operational efficiency during the quarter. The company's operational performance has been consistently strong, with net profit growing from ₹87.72 crore to ₹155.75 crore over the last two quarters, representing an average increase of 43.7% per quarter. Despite the challenging operating environment, the company maintained strong operational metrics with EBITDA growing 39% YoY, ahead of estimates by 10-27%.
Profit before tax (PBT) increased by 52% to ₹231.40 crore in Q1 FY2026, up from ₹152.17 crore in the previous year's corresponding quarter. As reported by Business Standard, this substantial growth in pre-tax profit reflects the company's strong operational performance and improved financial metrics during the quarter. The company's financial trajectory shows PBT growing from ₹152 crore to ₹231 crore over the last two quarters, demonstrating sustained operational excellence. The strong PBT performance was achieved despite the challenging operating environment, with the company maintaining robust financial metrics across all key parameters.
Profit before depreciation and tax (PBDT) rose by 40% to ₹273.64 crore in the June 2026 quarter compared to ₹195.81 crore in the same period last year. According to the financial data from Business Standard, this significant growth in PBDT demonstrates the company's robust operational performance and strong financial position during the quarter. The company's PBDT performance has been particularly impressive, growing from ₹196 crore to ₹274 crore over the last two quarters, reflecting the company's strong operational foundation. The strong PBDT growth was supported by better realization and operational efficiency despite the challenging production environment.
Motilal Oswal has recommended a buy rating on Kajaria Ceramics with a revised target price of ₹1,500, based on 30x FY28E EPS in their research report dated July 31, 2026. As per Motilal Oswal's research report, the company reported strong quarterly performance with 20%/39%/56% YoY increase in revenue/EBITDA/APAT, ahead of their estimates by 10-27%. The brokerage expects recovery in sales volume, high margins, and strong cash flows going forward. Prabhudas Lilladher has also recommended a buy rating with a target price of ₹1,403, upgrading their rating from 'Accumulate' due to stock price corrections. The company has guided double digit volume growth for 9MFY27 with EBITDA margin of 18-19% for FY27 and has announced two brownfield expansions at Srikalahasti (10 MSM) and Gailpur (11 MSM).
