Kajaria Ceramics posts 55% Q1 profit growth, backs Rajasthan plants with solar investment

Kajaria Ceramics reported Q1 FY27 net profit of ₹169.46 crore, up 55% year on year, on revenue growth of 20%. The tile maker also proposed a ₹6-per-share final dividend for FY26 and will invest up to ₹12.15 crore in a Sunsure solar project to supply captive renewable power to its Rajasthan facilities.

— Source publishedFri, 4 Sept, 2026, 12:59 IST·First seen Fri, 4 Sept, 2026, 13:08 IST·Source Mint · Markets

What happened

Kajaria Ceramics recommended a ₹6-per-share FY26 final dividend, subject to September 15 AGM approval. It reported 55% Q1 FY27 profit growth and is investing up

Key facts

  • Final dividend: ₹6 per share (600%)
  • Dividend record date: September 21, 2026
  • Dividend payment deadline: October 14, 2026
  • Q1 FY27 net profit: ₹169.46 crore, up 55% YoY
  • Q1 FY27 revenue: ₹1,328.08 crore, up 20% YoY
  • Q1 FY27 EBITDA: ₹260.33 crore; margin 19.60%
  • Renewable-power equity investment: up to ₹12.15 crore
  • Buyback: ₹296.7 crore for 21.5 lakh shares at ₹1,380 each

Why this matters

Kajaria’s solar partnership signals a targeted decarbonization and cost-control strategy that could strengthen its Rajasthan production footprint without requiring major capital deployment.

What to watch

  • Quarterly EBITDA margin and energy-cost-per-square-metre trend versus revenue growth.
  • Rajasthan solar project commissioning timeline, contracted power volume and realized savings against grid power.
  • Tile sales volumes, average realizations and premium-category mix.
  • Dealer inventory levels, channel incentives and management commentary on pricing competition.
  • Housing starts, renovation demand and regional real-estate activity in key North and West India markets.
  • Industry capacity additions, natural-gas/power tariffs and competing ceramic makers' pricing actions.
  • Accelerate captive-renewable sourcing or add solar/wind capacity for other high-energy manufacturing locations if the Rajasthan project delivers expected savings.
  • Direct incremental cash flow toward premium-product launches, dealer-network expansion, showroom visibility and selective capacity debottlenecking.
  • Use improved earnings and the FY26 dividend signal to reinforce investor confidence while maintaining capital discipline on new tile capacity.
  • Seek longer-tenor power contracts and energy-storage or open-access optimization to lock in renewable-cost benefits.