Kajaria Ceramics Rides Gas Price Surge to Narrow Tile Pricing Gap
Kajaria Ceramics is benefiting from rising natural gas prices in the Morbi ceramic cluster, which are narrowing the price gap between unbranded and branded tiles. The company's EBITDA margin reached 19.6% in Q1 FY27, while its revenue grew by over 20% year-on-year to ₹1,328 crore.
The company is expanding its in-house capacity to reduce reliance on third-party manufacturing and improve cost control. By mid-2027, Kajaria aims to add 21 million square meters of in-house capacity, taking its total capacity to approximately 104 to 105 million square meters.
Investors are monitoring the company's revenue target of ₹6,000 crore for FY27 amid efforts to manage margin pressure from outsourcing. The company also faces risks related to input cost inflation and execution risks associated with the timely commissioning of new plants.