Kajaria's Q2 profit rises 42.35% as operating margin improves YoY
Revenue grew 23.8% YoY, while a lower tax rate and other income supported the earnings increase.
Filed 24 Oct 2026, 20:48 IST · after market close · Kajaria Ceramics Ltd (KAJARIACER)
Key takeaways
- Consolidated operating profit rose 34.28% YoY as expenses grew 21.5%, below the 23.8% increase in revenue.
- Operating margin improved 1.52 percentage points YoY to 19.52%, though it slipped 0.09 percentage points sequentially.
- Net profit increased 42.35% YoY, helped by a 0.79 percentage-point decline in the tax rate.
Price around the results
Revenue growth widened the operating spread
Kajaria Ceramics’ consolidated revenue grew 23.8% YoY, while expenses increased 21.5%, enabling operating profit to rise 34.28%. Sequentially, revenue increased 10.56% and operating profit grew 10.07%, indicating broadly similar momentum in the two measures.
Sequential margin eased as expenses edged ahead
Expenses grew 10.67% sequentially against 10.56% revenue growth, narrowing operating margin by 0.09 percentage points. The lower tax rate also supported earnings: it fell 0.79 percentage points YoY and 0.89 percentage points sequentially. Other income accounted for 6.59% of pre-tax profit, so part of reported profit came from non-operating sources.
Margin remains above the peer median
Operating margin has risen from 17.22% in Q3FY26 to 19.19% in Q4FY26 and 19.61% in Q1FY27 before easing to 19.52% this quarter. This is a pause rather than a third straight quarterly decline. Among 50 Consumer Discretionary peers that have reported, Kajaria’s margin was 7.1 percentage points above the 12.42% median.
The stock reaction was smaller than its usual move
The stock fell 1.48% on the first recorded reaction day, compared with a median absolute move of 2.09% after its past eight results. The direction was consistent with its recent pattern: the stock rose after three results and fell after five.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,468 cr | ₹1,328 cr | +10.56% | +23.80% |
| Other income | ₹17 cr | ₹18 cr | -7.89% | +5.39% |
| Expenses | ₹1,182 cr | ₹1,068 cr | +10.67% | +21.50% |
| Operating profit | ₹287 cr | ₹260 cr | +10.07% | +34.28% |
| Operating margin (%) | 19.52% | 19.61% | — | — |
| Interest | ₹5 cr | ₹5 cr | +5.60% | -8.65% |
| Depreciation | ₹43 cr | ₹42 cr | +2.04% | +2.89% |
| Profit before tax | ₹255 cr | ₹231 cr | +10.22% | +40.34% |
| Tax | ₹64 cr | ₹60 cr | +6.47% | +36.09% |
| Net profit | ₹191 cr | ₹171 cr | +11.51% | +42.35% |
| EPS (₹) | ₹12.02 | ₹10.64 | +12.97% | +43.95% |
Operating margin of 19.52% compares with a Consumer Discretionary sector median of 12.42% across 50 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.48% | -2.16% |
Volume on the results session was 0.86× its 20-day average.
What to watch
- Whether operating margin holds above 19.52% after the sequential decline of 0.09 percentage points.
- Whether expenses continue to grow no faster than revenue after the YoY comparison of 21.5% versus 23.8%.
- Whether other income remains below 6.59% of pre-tax profit.