Thank you so much. Good evening, everyone, and thank you for joining this call.

From the management side, we have Mr. Ashok Kajaria, Chairman; Mr.

Chetan Kajaria, Vice Chairman; Mr. Rishi Kajaria, MD; and Mr.

Sanjeev Agarwal, CFO. I will hand over the call to Ashok sir for his initial remarks, post which we'll open for question and answers.

Yes, sir, over to you.

Thank you, Pranav. Good evening, everyone.

It gives me great pleasure to welcome you to the Quarter 1 FY27 earnings conference call of Kajaria Ceramics Limited. Joining me on this conference call is the senior management team of Kajaria Ceramics.

In spite of the recent geopolitical disruption in the Middle East, coupled with a more favorable demand-supply environment for the ceramic tile industry in Morbi, we remain optimistic about our business outlook for the year FY27. The performance in Quarter 1 FY27 has broadly validated our expectations and provides a strong foundation for the year ahead.

In Quarter 1 FY27, we achieved a 6% year-to-year volume growth in spite of soft April. However, consolidated revenue grew by 20% to Rs 1,328 crores compared to the corresponding quarter last year, mainly due to increase in selling prices because of fuel impact.

EBITDA margin for the quarter stood at 19.60%. Apart from a brownfield expansion of 10 million square meters at our Srikalahasti manufacturing facility announced last quarter, we have also decided to put up a further 11 million square meters line at our Gailpur, Rajasthan facility that will deliver cost-effective, high-quality products.

Beyond tiles, two verticals are evolving from adjacencies into pillars. Kerovit, our bathware brand, is scaling with purpose.

The decision to acquire the remaining 15% stake from Aravali Investment Holdings is an unambiguous statement of long-term commitment to building a market-leading bathroom solutions brand. Our adhesives business is on track to grow at a much faster pace.

As the price differential between national branded players and their informal counterparts have narrowed, a consumer preference is expected to shift decisively towards branded products. A cyclical tailwind that positions Kajaria favorably going forward.

Looking ahead, we remain confident that the company is well-positioned to sustain quality growth and create long-term value for all stakeholders. Let me review this quarter financial performance.

Tile segment revenue grew by 18% year-to-year at Rs 1,162 crores in Quarter 1 '27 compared to Rs 986 crores in Quarter 1 FY26. Bathware segment registered a 33% growth in revenue reaching Rs 122 crores in Quarter 1 FY27 compared to Rs 91 crores in Quarter 1 FY26.

Revenue from adhesives grew to Rs 45 crores in Quarter 1 FY27 as compared to Rs 25 crores in Quarter 1 FY26. EBITDA improved in Quarter 1 FY27 to 19.60% as compared to 16.72% in Quarter 1 FY26.

Profit before share of profit/loss from JV, exceptional items, and tax grew to Rs 230 crores in Quarter 1 FY27 as compared to Rs 149 crores in Quarter 1 FY26. PAT for the quarter grew to Rs 169 crores in Quarter 1 FY27 as compared to Rs 109 crores in Quarter 1 FY26.

As of 30th of June '26, the working capital cycle also improved by 5 days to 46 days compared to 51 days on 31st of March '26. We will continue to focus on a lean working capital cycle going forward.

With this, I take this opportunity in thanking you for joining us today. Over to moderator, please.

Thank you for the opportunity, and many congratulations for a very good set of numbers. My first question is related to the pricing.

As you also highlighted, there is a price hike and overall 11% of increase in the realization. Can you give us some more color on that, how much is the actually in the segment-wise the price hike you have taken?

The way forward also, where you are seeing this price hikes to continue at?

See, two things have happened after the war on 28th of February. The prices of gas at Morbi went up drastically, because GSPL is the only supplier.

In as far as Kajaria is concerned, we have three plants in Morbi, we have three plants in north, and two plants in south. In north, we are taking the gas from GAIL.

In south, we are taking gas from two CGD companies, one is Think Gas and the other is another CGD company. What has happened in Morbi, the gas prices went up from literally about Rs 48 to Rs 86 to Rs 88 per SCM, whereas in north the price hike was approximately about 10% to 12% 10% to 12%.

As a result, the cost increase in Morbi was much more than what has happened in north. In Morbi, they have increased the prices by almost 40% to 45%.

In north and south, from our plants which we are manufacturing, we have raised the prices by anywhere between 10% to 11%. As a result, the gap has come down drastically.

That's the current situation. As we all know gas market is very volatile with the war still on.

One day there is no war, second day the war is on, and the situation is very, very volatile. Looking at that, we'll keep watching and see what happens.

The situation as of today is very positive as far as Kajaria is concerned because of the multi-locational plants that we have.

Perfect, sir. Second question related to that is volume.

6% of growth in the volume we are seeing, and still there is a lot of volatility in terms of the gas supply and all we are seeing. Where you are seeing this volume growth to be in the next nine months?

You see, if you recall, last two quarters we have not given any volume guidance, but this year with a lot of confidence we are saying that next nine months we will have a double-digit growth. Double-digit volume growth.

Okay. That's good to hear, sir.

Last question is related to the capex, because two capex announcement happened for Rs 210 crore and Rs 165 crore. Also there is a renewable acquisition of Rs 12 crore.

Can you give a '27 and '28 capex, how much is going to be out of a Rs 387 crore of a total capex of all these? Also the maintenance capex, if you can give?

This year, we are looking at a capex of roughly Rs 400 crores, because part of the capex which we are doing in two plants partly will come here, partly will come next year. This year the capex plan is roughly about Rs 400 crores.

Okay. There is some maintenance capex included in this?

All included. All included.

All included.

Thank you, sir, and all the best for future. I'll fall in queue.

Thank you.

Hi. Thank you for the opportunity.

Sir, it's heartening to see you giving double-digit volume growth guidance after a long, giving some guidance. Just want to firstly understand from where this confidence is coming, what insights you're getting it from ground?

Secondly, July also we are seeing a similar trend?

Hi, this is Rishi Kajaria. As we said, our April was a little soft, but May and June we did have a good volume growth, and the same trend continues in July.

At one side we are strengthening our complete distribution strength, and also another lever for growth which we have now started working on is projects, which will give us that additional volume. Just to give you the information that we have just had a major breakthrough with two of the very, very big builders of India where we're getting a lion's share.

Looking at the distribution strength of ours and this additional lever of projects, we feel that we are bound to do a double-digit growth this year. That gives us the confidence.

Understood. Got it.

Secondly, how are the margins looking this year? In this quarter, you already crossed the Rs 250 crore EBITDA mark, possibly can we hit a Rs 1,000 crore mark this year?

By when the promoter would be taking the promoter remuneration which a few quarters you take a call you don't want to take it? This so

we are looking at our EBITDA margin of about 18% to 19% for the entire year. First quarter first quarter we already got a 19.60%, we are we are quite confident that we will look at those numbers for the entire year.

We are looking at a 1,000 plus Rs 1,000 crore plus EBITDA overall.

Got it. Just a small clarification, by EBITDA you include other income or not?

Secondly, as you hit Rs 1,000 crore mark, possibly this or maybe next year, promoter will start withdrawing remuneration?

Wait, one minute, sir. Other income is not part of EBITDA, it's operating EBITDA.

Promoter in the last concall have already clarified that they are not going to take salary for this financial year.

Understood. Got it.

That is helpful. Thank you, sir.

Good evening, team, and thanks a lot for the opportunity. Couple of questions from my end.

Firstly, wanted to gauge how is the demand on ground. When you said April was weak, and May and June recovered, could you help us with the understanding where was it, maybe region-wise break-up, Tier 1, Tier 2, Tier 3, or was it a broader slowdown?

What are the reasons according to you, and are we seeing pick up back again in the current month? See,

April was soft for three reasons, and we all are aware why it was soft. One, there there was the total shutdown of Morbi in the month of April, number one.

The Morbi manufacturing closed on 5th of March and was literally closed till 15th of April. Some plants started, only 10% of the plants started in the month of April, mid-April, 16th of April.

Morbi, there was a total shutdown, number one. Number two, they've in the month of March, the all the dealers across India lifted something more quantities for a simple reason that they knew that the prices will go up from 1st of April.

Third, there was a labor shortage across the country for two reasons. One was the elections around in the country, and secondly, there was an LPG shortage, they all went back to their destinations and said let this problem ease out and we'll come back again.

These are the reasons. Already in the month as already in the month of May and June, things have started positively, and so is in the month of July, which is just about to close.

Demand at the at the local at the normal level in the domestic market is very, very looking very optimistic.

That's great to hear. Second question is regarding capex.

We've seen renewed capex, y'all are putting up additional capex in your own facilities. Where is optimism coming up from, because earlier the thought was largely to take it from JV route from Morbi or even outsourcing.

What is the currently margin differential let's say between your own plants and JV, and which model is working better and why?

Hi, Chetan here. We have two capexes coming up which we announced.

First is the Srikalahasti expansion in south at a cost of Rs 210 crore which we announced in the last board meeting. Second is the expansion at our Bhiwadi factory in Rajasthan at a cost of Rs 165 crore which will happen in this financial year and spill over by April '27 will be completed.

These are the two major capexes we are looking at for increasing our sales. What was the second question, Sneha?

Just wanted to understand why sudden renewed capex interest? What sort of a margin difference do we make between the Morbi manufacturing as well as the south or the north manufacturing?

Sneha, the thing is that at this time it is a new technology, it is the latest plant we are putting both at Srikalahasti and Gailpur, where the capex is much lower what we used to do earlier. The turnover which we'll be getting from the both the capex will be a two more than 2 times.

It will be not only the capex-efficient, but also the opex-efficient. The cost of production will also be lower, incrementally there will be highly ROCE accretive, and we'll get much more margin what we are getting even in our existing manufacturing facility.

Understood, sir. This was quite helpful.

Thanks. Thanks a lot.

One more thing

that, see,

the decision of putting up the plant and outsourcing is also based on the geography. We are finding good demand in north, cater to the northern demand we are putting up the plant, and this plant we are putting up 10 11 million plant for Rs 165 crore which will give us a turnover of more than Rs 400 to Rs 450 crore with much better margin.

Outsourcing we will use to utilize our full capacity, but going forward as we have to grow, we aim to grow in double-digit, it will help in meeting the sourcing requirement from these two plants.

Understood, sir. Thank you so much, team.

All the best.

Am I audible, sir?

Yeah.

Thank you for the opportunity. Just a couple of questions from my side.

How is the demand tracking across the retail channels and versus the institutional sales? Is there any real estate-linked demand that you are seeing is currently a chief growth drivers?

Is there any signs, explanation of softness in the current quarter?

As I mentioned before, the demand is coming from both retail as well as institutional. Our focus was less on institutional earlier, but now we are focusing on both the segments together to get a better growth volume.

We are strengthening our distribution, our dealer network, as well as we are being aggressive in projects to gather more market share.

Got it, sir. One more question that what's the current export contribution to the revenues and is there any change in the strategy given that there is a global trade uncertainty and tariff uncertainty this year?

Is there any going to be shift to the concentration to domestic? See Disha,

we are a domestic consumption story. We don't want to go to exports.

Our export is less than a percent of our overall turnover. We are very bullish on the Indian market, and we want to focus all our energy and effort here.

We are not looking at export market at all.

Sir. Got your point.

Got you. Thank you.

Opportunity, management. My first question is the board has approved additional 11 MSM capacity expansion at Gailpur.

Could you help us understand the key drivers behind this investment? Is this expansion based on the strong demand visibility the next few years, or is the company positioning itself ahead of the next housing and real estate upcycle?

The driver is the market demand from the north and eastern markets, which Gailpur plant caters to. Due to the price increase of gas prices in Morbi, which is the cluster, the price differential between Kajaria and the Morbi players has decreased.

This has given to an increased demand for our products in the northern and eastern markets. Seeing that demand scenario, we decided to put up an expansion in our Rajasthan plant.

Okay. The next, could you share the number of dealer added during the quarter?

Pardon? No, that's confidential, it is not.

Number of dealers added in the quarter? Because overall we have 1,800 dealers approximately, out of which 450 dealers are exclusive.

As we go along in the year, with this change, we are expecting another 100 dealers to add, out of which this time 50 will be exclusive. We are focusing more on exclusive Kajaria dealers.

Yeah. How should we think about the dealer productivity over the next 3, 4 years?

Do you expect growth to come primarily from adding dealers or increasing sales per existing dealers? See,

automatically with the addition of the demand, see, one thing you're not able to get right now. The difference between Kajaria and Morbi has minimized.

What was being sold from Morbi to a Morbi dealer and Kajaria dealer has minimized. If the gap earlier was 40%, today it has come down to 20%, number one.

Number two, there are three kinds of customers in the country. One is a guy who's going for branded only.

He will buy Kajaria, Somany, or Johnson. There is a guy who says I want sasta, cheap, he will buy a Morbi product.

There was another set of people who are saying where do I go? Where do I go to branded or I go to Morbi?

Difference being minimized prefer a branded, because you make a house once in 5 years, 10 years, 20 years, they will go for branded. As a result, our sales have started going up, which we are seeing as a result, which is resulting in what we are talking about.

As a result, we felt it is a right time to go for such a massive expansion, number one. Number two, as you might have heard just now, in Gailpur we are talking about an increase of 11 million square meters at Rs 165 crores.

If I take you back two years back, 5 million square meter used to cost 150 crores. This is a big change which is happening with the latest technology that we are putting up the plant.

In Nepal side, tiles market estimated around 200 to 500 crore. Historically Indian tiles around 60% growth.

What is expectation for the next 2, 5 years market share is Kajaria targeting in Nepal?

Please come in the queue again, let other people ask the question. You have already asked the questions.

Okay.

Good evening, and congratulations on good set of results. My first question is that when I look at the last 3 years, the sales growth for us has been uninspiring, 3%, 4%.

I see a very renewed confidence in the commentary of growth. It's hard to visualize the size and scale of the company.

It will be great if you can give a slightly medium-term outlook where you see the size and scale. My second question is when I was looking at social media a few weeks back, I think you guys had a sales meet, and there you could see 6,000 crore number on the top line for this year or I don't know next year.

Some granularity on what is giving the confidence of growth, and how the size and scale of the company will look like in the next 3 years. Last 3 years has not been great.

What are the big changes internally, externally you are seeing which is giving you the growth confidence? It will be really helpful.

Thank you.

Thank you very much. I take you back to April '25 when the big change happened at Kajaria.

What happened? We did the job of unification.

We had three three different verticals: ceramics, polished vitrified, and glazed vitrified. We combined it to one.

What happened last financial year was there was a lot of cost cutting at various heads, but volume didn't come because there was a lot of correction was to be made. The real volume growth came in the Quarter 4 when we grew at about 11%.

As a result, what happened? Two things happened.

One, the organization become much leaner than it was. A lot of people went because there were three verticals operating.

Instead of three verticals, now there is only one vertical, that is tiles. It is now started yielding results.

That is the confidence which we got, number one. The confidence is not that what we got, the confidence we got is the sales, resulting in larger sales.

As I said just now, in the month of April it was soft because of three reasons. In the month of May, June, and now July, which is also just 31st and last day of July, things have started improving.

We are seeing a double-digit growth. Looking at that, we see that next 3 years is going to be very, very positive for Kajaria.

That is why these expansions are coming.

Okay. On the external front, Morbi was very competitive all throughout.

With what is happening around in terms of pricing, do you see a structural change there where the shift from unorganized to organized has started to happen? Anything which is also acting as a tailwind there and helps us on that front as well?

You will wait and see. You see the gas market is very very volatile today.

One day there is a war, next day there is no war. You have to understand this thing that in Morbi there is only one gas supplier, that is GSPL, which is partly importing on spot and partly taking gas from GAIL and Indian Oil.

Here, we are getting gas from GAIL, which is a much, much bigger player as far as gas is concerned, and then CGD companies in south. Right now that situation how it will come, how they will become more organized and all that, it's too early to say.

Because right now they are in a trouble as it is, because they do not know what gas prices will be tomorrow, whereas there is some certainty from GAIL side and the gas.

That's helpful. Last question was that when I look at the market feedback at the ground level, the demand for slabs has been going up at a much faster pace.

In the initial time, we had missed that opportunity. How do you see that going forward for us in terms of our capacity capturing market share there where somewhere Simpolo has done a great job?

From a slab perspective, how do you see our opportunity and that becoming a large portion of our product mix? That will be my last question.

I fully agree. I fully agree with you.

That is why we are putting up these two large capacities. See, your question is a very valid question that Kajaria missed out.

We do agree. This is why we are putting up these large two capacity to meet the requirement of bigger sizes.

A state-of-the-art plant, both are state-of-the-art plants. Fantastic,

fantastic. Wish you all the best and looking forward for optimism turning into execution.

Thank you.

Hi, sir. Thanks for the opportunity.

Sir, my first question is just wanted to understand why is the difference in capex intensity between the two plants that we have indicated?

The capex difference is because in Gailpur the shed is already there, so that's why the cost is less. It is the exactly the same plants which we are putting in both the factories.

In Srikalahasti, we are putting up a brand new shed. We have to make a 8.5 lakh square feet new shed, whereas in Gailpur it is an extension of the existing shed.

That is the difference of the capex.

That would be almost like Rs 45 crores?

Yeah. In Srikalahasti we're spending almost about Rs 80 crores on the shed, Rs 80 to Rs 90 crores, and in Gailpur we'll be spending about Rs 40 to Rs 50 crores on the shed.

Okay. My second question is just a continuation of what Pankaj sir was asking you.

If you could highlight basically what is the technology or any different type of tiles or sizes that we're looking at this particular expansion? Is it the historical SACMI and Continua lines or is it something else that we are looking at it from a technology standpoint which will actually help us on differentiating the product incrementally?

I'll tell you, the biggest differentiating factor is the volume. Earlier, as we just mentioned, a 5 to 6 million square meter plant used to cost about Rs 150, Rs 160 crores.

Now in Rs 370 crores, we'll get almost 22 million square meters. We are focusing on capacity as the number one point.

With that, we'll have the flexibility whatever machinery we buy, whether it is SACMI, whether it is Chinese, we'll have a mix or combination of both. We'll produce the best quality tiles where we'll have an option of all the sizes.

Right.

Is there anything different from a printer or a kiln standpoint which will differentiate our products versus what we have currently? Or is it just scale basically that we are referring to over here?

What's happened is the kiln size is increased. Earlier we used to put a 200-meter kiln.

This time we're putting a 340-meter kiln. That's one.

With either a Continua+ press or a hydraulic press, normal press, that doesn't make a difference. Based on that, our technical team is working on all those things.

Our first priority is to go for a higher volume capacity. That is the way we'll get a very good cost where we can get a much better share in the market.

Sure. My last question is, would it be possible for you to quantify rupees per SCM for north, west, and south?

I think for Q1 we had given numbers of 55, 47, and 49.6, please correct me if I'm wrong. If you could help us with the numbers for Q1 and likewise what it is on a spot basis?

You're talking about the gas?

Yes, sir.

Right?

Yes, sir.

Average fuel price is around 71 in this quarter. The west was the costliest, Morbi, as our plant for Morbi.

That was around 85. Rest south and north are much lower than the west.

Sir, would it be possible for you to quantify corresponding to Rs 55 in north in Q4, how much was it in Q1?

It's 64, around 64, and as far for south, it is around Rs 72, Rs 73.

Sir, on spot basis, how much would it be?

This is too much detail. That spot...

Spot is about 85.

Spot on a blended basis corresponding to 71 it is 85, is that right?

Yes, spot is 85. You see, gas is not that simple.

Gas is a combination when you talk about gas in north, it's a combination of various gas that we get from GAIL, number one. In Morbi, it's straight GSPL.

In Srikalahasti again it is a combination of various gases which Think Gas gives. It's not that simple that just give you the price.

It's a combination of various gases which go into the final number.

Right, sir. What I...

Sorry.

Right.

Sir, what I was trying to understand is if we look at the indicated increase, basically what is the price increase required after Q1 given the gas prices that they are higher versus Q1? Is it...

See, first of all, please understand, gas prices are very volatile. I cannot give you that what will happen tomorrow.

Nobody knows. Even GAIL people do not know what will happen tomorrow, because now the entire parameters are decided by Ministry of Petroleum depending on how the war takes place.

Whatever it is today we are ready to share. What will happen tomorrow, nobody knows.

We should leave it at that as correct.

Sure, sir. That's helpful.

Thank you.

Thanks for the opportunity. What is the status of Morbi export as of now on monthly basis?

See, exports have come down in the first 3 months of the year due to this war, Gulf War. Lot of exports have been going to America, to Russia, to UK, to Gulf.

All these dates where the freight rates have gone up by almost 1.5 to 2 times. As a result, exports have come down.

Average exports in the first 3 months is about Rs 3,000 crores, Rs 1,000 crore each month. This year instead of Rs 16,000 crores of '25, '25-'26, as of today the run rate is lower, the run rate is Rs 1,000 crores per month.

In terms of outsourcing, we are going to achieve a 35%, 40% numbers for us?

You talked about exports just now, right?

Yeah. I'm talking about outsourcing for us, Kajaria.

Yeah.

We were at 29%, 30% number in terms of outsourcing, and we were targeting to reach close to 40% in next 12 months or so.

This year this year, see, we last year we sold about 118 million square meters of tiles. This year we are looking at about 130 million square meters of tiles.

That's why I said the growth plus this, as I said, the growth will be double-digit plus for the next 9 months. In the first quarter which we shared just now, we have grown at 6% volume growth.

If you look at those numbers overall, our manufacturing capacity this year is not going up. Whatever we are doing, we are doing for next financial year.

Looking at that, we have to do more outsourcing to meet that requirement of sales. That is for this year.

Next year the percentage will go down when the manufacturing facility will come.

Thirdly, one understanding I wanted to share. If you look at real estate launches data, in '19 and '20 there was a huge jump in terms of launches, and I think our numbers got impacted because of that.

In 2023, we had a very sharp jump in revenue in '22 and '23. Likewise, if I see, we have seen '24, '25 there is a 60%, 70% jump in launches in real estate.

Can it be assumed that those launches in terms of tile demand is now coming up, and that is why you are seeing good demand from institutional side?

See, let us not confuse ourselves with all this data. I have already shared a lot of data that why our demand is going up.

The first point is unification, which I said very strongly. Secondly, the price difference between Morbi and Kajaria or let's say Morbi and Somany or Morbi and Johnson, which is because they have multi-locational plants just like Kajaria.

With that, we are looking at a positive scenario. What real estate launches and all that, you will confuse the issue, there's no use of talking about that.

Also, just to clarify a point, when a project is launched to the point that tile gets used, it's a 4 to 5-year cycle. Even if the real estate projects got launched in '24, '25, '25, '26, this is not the time that the tiles will get used in those launches.

Our growth projects have nothing to do with those launches. Those are independent of those real estate launches.

As already said in the meeting, we are also breaking on projects, which earlier Kajaria was leaving due to various reasons. Now we are also embarking on retail as well as projects.

With these breakthroughs, definitely we are looking at a very positive scenario going forward.

Okay. What will be the share of institution and retail, any rough idea going forward?

It's too early.

It's too early to talk. Let us do few things, it's too early to talk.

Everything can't be replied in one day, no?

Sir. Okay.

Thank you, and all the best.

Thank you.

Hi, sir. My first question is we said that the incremental demand in FY27 will be met from outsourcing.

If the price gap between Kajaria... You are not clear, please.

You are not clear.

Am I audible now?

Yeah. You are okay now.

Yeah. We said that the incremental demand will be met through outsourcing for FY27, and with the price gap between the company and Morbi players having narrowed down, is it still lucrative for us to outsource?

You have no choice. You have no choice.

See, this year because of the production constraint, we will outsource from Morbi, because that is the only option. Once the plants come on stream in the next financial year in the first quarter, then our dependence on Morbi will be drastically reduced, and we will have 22 million of our capacity in-house.

Understood, sir. Sir, last question is, what would be the share of ceramic, PVT, and GVT in terms of both volume and value for Q1 FY27?

See, the share of ceramic and PVT...

Now it is one division.

Now it's a very irrelevant question, because you are making everything, you're selling everything, right? We honestly don't calculate how much ceramic we sold or how much PVT we sold or how much GVT we sold.

We are selling our complete volume of tiles, and whatever the market demands, we make that and sell. Overall, just for your information, GVT tiles are sold more in the country now, PVT is sold less, and ceramic tiles are mostly used for wall tile, more so wall.

Understood, sir. Thank you so much.

Thank you.

Thank you for taking my questions. I have two questions.

One is on the pricing side. You mentioned that the price hike was more driven by the increase in fuel cost which we saw during April, May month.

There was a big difference in the cost increase in the Morbi region and the rest of India. My question is that the 11% kind of realization growth which we are seeing on a QoQ and YoY basis, was this uniform across country?

My assumption is that we have a unified price on a pan-India basis. Just for a clarification.

If that is the case, then what is the price gap narrowed vis-a-vis Morbi as on today? The second question is, is it safe to assume that in FY27, we will have a 20% plus kind of revenue growth driven by about 10% growth in volume and 10% from value?

Correct. Your first question, the price is not unified and uniform.

It varies from geography to geography. As was said earlier, we have three plants in north, two in south.

There the price increase was roughly 12% to 13%, and Morbi, in our plants, our price was much higher due to the price of gas there was increased by much more. The prices are not uniform, it varies from geography to geography.

Again, earlier as was said, the price differential between Kajaria and Morbi was 40%, which has come below 20% as of now. I hope that answers your first two questions.

Yes.

We are confident of achieving a double-digit growth with a 20% value growth.

Sir. Thank you so much, and all the best.

Thank you.

Hi, sir. Sir, I just had one question, just a follow-up on the previous question.

Sir, the blended price hikes you would have taken since the war broke out, sir, is it today sustaining at that level? What is that number and where would it stand for players in Morbi?

I understand the situation is quite volatile, just the update as of today.

Yes, the price is sustaining as of now, because the situation is quite volatile as of now also, the oil and gas prices. It was average 13% to 14% the price hike which we took.

See, you have to differentiate the Morbi products and our non-Morbi products, because Morbi product the inflation is more, we are just adding our similar margin and selling in the market. Morbi we cannot give you any average realization.

Our own non-Morbi plant we have taken a price increase of around 10%, so that seems to be sustainable as of now. Morbi price may fluctuate.

If the prices may go down, our prices will also go down. If their prices go up, then our prices may also go up.

There is no weighted average price we can tell you now, because situation is dynamic. We will be having the same margin for the Morbi product whatever even when we were buying at Rs 20 and now we are buying at Rs 30 we are having the same margin.

On revenue it looks high, but the margin percentage would remain the same. Our margin should not change with the increase or decrease of Morbi price.

Hello? Am I audible?

Sir, I just wanted to get a sense on the geographical mix, how is the split like for Tier 1, Tier 2, Tier 3, and which particular geography where we are seeing high traction, sir?

The split is like this: North has 35%, South is 30%, East is 20%, West is 15%. Tier 1 sales Metro sales 15%, Tier 1 and 2 are 30% each, and Tier 3 roughly 15%.

That's our geographical split. See, the good part, what is happening is the entire India is growing.

There's so much work everywhere to be done. We were in Maharashtra recently.

We are opening showrooms there, all dealer showrooms. Wherever you go in India, there's so much of work to be done.

We are very, very bullish about the entire situation. If we keep on doing our job well, where on one side we keep on strengthening our retail network, by what I mean by that is opening the dealer showrooms in the remotest parts of India, and on another side, the additional lever which we are talking about where we are being aggressive in projects, with a combination of both of them, we are very confident of achieving our numbers both in terms of volume and value.

Okay. Sir, just like you mentioned about adding dealers, just on the design part, what's our strategy?

Because that is also one USP which we can develop, and so any particular thought there, like how we can expand our SKU and the designs and stand out in the market?

What we do is, when the dealer, let's say, for example, a place like Ahmednagar, place like Kolhapur, Amravati, right? All these places, when the dealer wants to make a showroom, we work with the dealer, give them all the design.

Our person goes there, makes the showroom, helps them in designing the showroom. See, in a person's life, the guy buys tiles two or three times in entire life.

Right? The jo dikhta hai wo bikta hai.

Our design philosophy is to make the showroom so good for our dealers that when a customer comes, he's completely bowled over and he doesn't look at anything else.

Okay. Any strategy like how many experience centers we have currently and want to expand?

I personally visited and obviously it's great, but...

We have our experience centers in all the major towns, about 24, 25 of them. We put about two one or two experience centers every year, but our focus is on strengthening our dealer network and giving them the best product designs.

Right? We do a lot of R&D in our factories to make sure that we're always keeping up with trends and making sure that our dealer shows those designs for the end customer.

Okay.

Sir, next on the sanitaryware and faucet, sir, we had around 33% growth this. Could you just quantify how much was volume-driven and how much was because of the price hike there?

A mix of both. I think we increased the price about 15%, 16%, and the rest was volume growth.

Looking for this entire year, we are definitely looking at about 35% to 40% value growth, which will be a combination of both price increase and volume growth.

Okay. Any color on the margins, because now that we've crossed a critical scale, and I think we'll cross 500 crore mark...

See,

for Kerovit, the bathware division, this will still be a little tough year. Tiles we'll have good margin, but bathware will still be a little tough because we are still correcting a lot of things.

We just hired a new Chief Business Officer also in April, and we're still restructuring a lot of our areas. I would say this is a year where yes, we'll do our growth, but we'll also have to do a lot of corrections.

Next year we'll look at a much better number both in terms of value and in terms of profits.

Okay. Any color on the margin, it's just close to breakeven or something?

I would not like to give any margin guidance on sanitaryware and faucets like this, sir.

Thank you, sir. Thanks.

As we say, I have blended for the company we're talking around 18%,

19%. That's great, sir.

Thank you.

Thank you.

Thank you, Pranav. I think a good set of questions have come.

On behalf of our entire management and myself, I thank you all of them for being with us in this investor conference, and thank you once again. Thanks a lot.