Kajaria Ceramics (KJC IN) – Q1FY27 Result Update – Demand Recovery and Capacity Expansion Drive Growth – Upgrade to ‘BUY’
Published on 31 Jul 2026
KJC has guided double digit volume growth for 9MFY27 with the EBITDA margin of 18-19% for FY27. The company has announced two brownfield expansions at Srikalahasti (10 MSM) and Gailpur (11 MSM). Exports were impacted by the Middle East geopolitical crisis and elevated freight costs, reducing the monthly export run-rate to ~INR 1.0bn in Q1FY27. We have considered 4.0% CAGR in tiles volume over FY26-28E with cons. EBITDA margin of 17.8% in FY28. We expect Revenue/EBITDA/PAT CAGR of 9.5%/9.2%/16.0% over FY26-28E. We had upward revised our earnings estimates for FY27/FY28 by 5.6%/2.9%, while upgrading our rating to ‘BUY’ from ‘Accumulate’ due to correction in the stock prices. We value the stock at 34x Mar’28E EPS to arrive at revised TP of INR 1,403 (earlier INR 1,338). Upgrade to ‘BUY.’
