Kajaria Ceramics targets volume growth with steady margins amid rising demand

Kajaria Ceramics, one of India's leading ceramic tiles manufacturers, is betting on volume recovery and margin stability as demand conditions improve across its key markets. The company has issued strong guidance for fiscal 2027, underpinned by expectations of increased consumption in both retail and institutional segments.

The recovery is being supported by a revival in the project segment, which has remained subdued in recent periods. This upturn is expected to provide a steady stream of bulk orders for infrastructure and commercial projects. Additionally, Kajaria is pursuing brownfield expansions to enhance its production capacity and meet the anticipated surge in demand without sacrificing profitability.

Management expects to maintain consistent margins despite the elevated competitive environment, attributing this to operational efficiencies and product mix optimization. The company's strategy focuses on both volume growth through capacity additions and margin protection through cost management.

However, the ceramic tiles industry continues to grapple with intense competition from manufacturers based in Morbi, Gujarat, which remains a significant downside risk to Kajaria's performance. These competitors have been pricing aggressively, potentially constraining margins across the sector. Kajaria's ability to differentiate through brand strength and distribution networks will be critical to sustaining its market position in this challenging competitive landscape.