Kajaria's margin reaches 19.61% as profit rises 55.04% YoY
Costs grew slower than revenue, while lower sequential tax and other income lifted profit despite a 3.30% revenue decline.
Filed 31 Jul 2026, 17:17 IST · after market close · Kajaria Ceramics Ltd (KAJARIACER)
Key takeaways
- Consolidated net profit rose +55.04% YoY as revenue grew +20.43% and expenses grew +16.58%.
- Operating margin expanded 2.66 percentage points YoY to 19.61%, with costs growing slower than revenue.
- The 7.89% contribution of other income to pre-tax profit and a 4.04-percentage-point sequential fall in the tax rate supported reported profit.
Price around the results
Profit growth outpaced revenue in Q1FY27
Kajaria Ceramics reported consolidated net profit growth of +55.04% YoY, ahead of revenue growth of +20.43%. Operating profit increased +39.34% because expenses rose +16.58%, slower than revenue. Sequentially, revenue fell -3.30%, but net profit rose +9.24%.
Lower cost growth widened the operating margin
Operating margin expanded 2.66 percentage points YoY because expenses grew slower than revenue. It also improved 0.42 percentage points sequentially as expenses declined -3.80%, more than the -3.30% fall in revenue. The margin has recovered from 17.22% in Q3FY26 to 19.61% in Q1FY27 after reaching 19.19% in Q4FY26.
Other income and tax helped reported profit
Other income accounted for 7.89% of pre-tax profit, so a portion of earnings came from outside operations. Sequentially, the tax rate fell 4.04 percentage points to 26.07%, while interest expense declined -12.59%; both supported the rise in net profit despite lower revenue.
Margin stayed above the peer-sector median
Kajaria's 19.61% operating margin was 5.14 percentage points above the 14.47% median for the 53 Consumer Discretionary peers that had reported the same quarter. The quarter's margin direction was positive after the Q3FY26 dip, rather than a continuation of the earlier decline.
Results were filed after market close
There was no market reaction yet because the consolidated results were filed after market close. Across the last eight results, the stock rose after three and fell after five, with a median absolute move of 2.09%, including a largest listed decline of -7.00%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,328 cr | ₹1,373 cr | -3.30% | +20.43% |
| Other income | ₹18 cr | ₹9 cr | +114.57% | +29.14% |
| Expenses | ₹1,068 cr | ₹1,110 cr | -3.80% | +16.58% |
| Operating profit | ₹260 cr | ₹263 cr | -1.18% | +39.34% |
| Operating margin (%) | 19.61% | 19.19% | — | — |
| Interest | ₹5 cr | ₹6 cr | -12.59% | -3.66% |
| Depreciation | ₹42 cr | ₹42 cr | -0.24% | -3.21% |
| Profit before tax | ₹231 cr | ₹224 cr | +3.34% | +52.07% |
| Tax | ₹60 cr | ₹67 cr | -10.53% | +52.28% |
| Net profit | ₹171 cr | ₹157 cr | +9.24% | +55.04% |
| EPS (₹) | ₹10.64 | ₹9.78 | +8.79% | +55.56% |
Operating margin of 19.61% compares with a Consumer Discretionary sector median of 14.47% across 53 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 19.61% after the recovery from 17.22% in Q3FY26.
- Whether expenses continue to grow slower than revenue, as seen in the YoY comparison of +16.58% versus +20.43%.
- Whether other income remains below 7.89% of pre-tax profit and the tax rate stays near 26.07%.