Cera Sanitaryware Ltd

Cera Sanitaryware Ltd: Trading window closed from 1 October, 2026 till 48 hours after the announcement of Unaudited Financial Results of the quarter and half year ended 30 September, 2026.

Rating Details

• Long-term bank facilities Rs 56 crore; CARE AA; Stable.
• Long-term/short-term bank facilities Rs 44 crore; CARE AA; Stable / CARE A1+.
• Total facilities Rs 100 crore.
• Rating agency: CARE Ratings Limited.
• Action: Reaffirmed ratings.
• Outlook: Stable.
• Rating date: 28 August 2026.
• Issuer: Cera Sanitaryware Limited.

Financial Performance

• Revenue from operations: INR 486 crore; prior year Q1 INR 407 crore.
• Turnover discounts now deducted from revenue; current quarter down 2.5%, prior quarter down 3%.
• EBITDA excluding other income: INR 49.2 crore; margin 10.1% vs 13.1% YoY.
• PAT: INR 45 crore; EPS: INR 35.15; vs Q1 FY26 PAT 47 crore; EPS 36.08.
• Cash and cash equivalents stood at INR 943 crore as of June 30, 2026.
• Capex FY27 outlay planned at approximately INR 43 crore; Faucetware expansion and digital upgrades.
• Brand investment for FY27: INR 85 crore for brand-building campaigns.
• Guidance: FY27 revenue growth in the range of 18-20%; EBITDA margin 13.5-14%.

Operating Update

• Revenue mix: Sanitaryware 47%, Faucetware 40%, Tiles 11%, Wellness 2%.
• Sanitaryware growth 14% YoY with volume-driven contribution; Faucetware growth 25% YoY with volume-driven contribution.
• Senator and Polipluz progress to be evaluated over a longer horizon; targets intact.
• Gas cost weighted average INR 48.43 per m3; gas sources 69% GAIL, 31% Sabarmati.
• Gas cost accounts for about 3.3% of quarterly revenue.
• Pricing actions: cumulative increases of 12% in Sanitaryware and 16% in Faucetware; largely absorbed.

Balance Sheet & Cash Flow

• Inventory days reduced from 80 to 68.
• Receivables reduced from 38 to 30 days; payables increased from 43 to 48 days.
• Net working capital cycle improved from 75 to 50 days year-on-year.

Capex & Projects

• FY27 capex outlay about INR 43 crore; Faucetware brownfield capacity expansion and efficiency upgrades.
• Greenfield sanitaryware expansion deferred; utilization improved to ~80% after June; decision end-year.
• Flagship Senator stores guidance maintained at 50 by year-end.

Brand & Digital

• DMS extended to retailer loyalty program for better secondary-sales visibility.
• Brand campaign 'Your Moment of Cera' launched with Kriti Sanon across TV, digital, and media.
• Brand-building and promotional spend planned around INR 85 crore in FY27.

Guidance & Outlook

• FY27 revenue growth expected 18-20%; EBITDA margin guided 13.5-14%.
• Delayed price impact: Q2 will reflect price rises; project pricing to contribute post-Q2.
• Brass price trajectory under watch; potential further price hikes if costs stay elevated.
• Full-year gross margin expected to recover toward historical levels if input costs stabilise.

Q&A Highlights

• Q1 margins were affected by one-time items; full-year margins expected at 13.5-14%.
• One-time wage settlement impacted current period; annualized ~INR 18.3 crore; prior period INR 6.3 crore.
• Staff cost quarterly run-rate excluding one-time settlement around INR 72 crore; full-year impact ~INR 18.3 crore.
• Greenfield capex revival possible if demand sustains; current utilization improvements reduce urgency.
• Brass price movements may necessitate additional price increases; retail impact delayed to next quarter.
• Senator/Polipluz progress remains intact; numbers to be tracked over longer horizon; targets unchanged.

Audio recording

• Audio recording of Q1 FY2027 earnings call held on 8 August 2026 is available on the company website.

Q1 FY27 results and board communication

• Board approved unaudited Q1 FY27 results for quarter ended June 30, 2026.
• Revenue from operations (net of taxes) ₹4,860 million, up 19.5% YoY.
• EBITDA (excluding other income) ₹492 million; margin 10.1% of revenue; down 7.3% YoY.
• PAT ₹453 million; margin 9.3% of revenue; down 2.6% YoY.
• Diluted EPS ₹35.13; down 2.6% YoY.
• Guidance for FY27: revenue growth 18-20% and EBITDA margin 13.5-14%.
• Faucetware capacity expansion on track, to be completed in FY27.
• Launched 'Your Moment of CERA' national brand campaign with Kriti Sanon.
• Working capital cycle improved by around 25 days YoY.
• Sanitaryware and faucetware contributed 47% and 40% of revenue; growth 14.1% and 25.3%.

Financial results approval

• Board approved unaudited quarterly results for quarter ended 30 June 2026.
• Audit Committee reviewed results; statutory auditors issued an unmodified review report.

Dividend and AGM matters

• Dividend of Rs 75 per share recommended for FY2025-26.
• Shareholders approved the dividend at AGM on 23 July 2026.

ESOP and employee welfare

• ESOP Trust transferred 2011 equity shares on stock option exercise.

Labour Codes and provisions

• New Labour Codes implemented; gratuity and leave-benefit liabilities reassessed.
• Excess provision of Rs 1065.29 lakhs reversed in March 2026.

Segments and operations

• No separate reportable segments under Ind AS 108; focus on domestic building products.

Auditor commentary

• Auditors issued an unmodified review; no material misstatement observed.
• March 31, 2026 figures are balancing figures; previously reviewed, not audited.

Meeting Details

• Date of Event: 13 August 2026
• Type/Mode: In-person, group
• Event: Equirus Annual India Conference
• Venue: Mumbai
• Purpose: Analyst/institutional investor interaction
• Key participant: Company Secretary

Earnings call details

• Intimation of Q1 FY27 earnings conference call on 8 Aug 2026 at 10:30 IST.
• Q1 FY27 results to be declared on 7 Aug 2026, with brief discussion and Q&A.
• Dial-in: primary numbers +91 22 6280 1141 / +91 22 7115 8042.
• Toll-free regional access: Singapore 800 101 2045; USA 1 866 746 2133; UK 0 808 101 1573.
• Pre-registration required to receive dial-in credentials by email.