Mumbai, May 08: CERA Sanitaryware Ltd reported a resilient performance for the fourth quarter of FY26, driven by strong growth in its faucetware business, improving retail demand, and continued expansion across premium and value segments.
The company posted standalone net sales of Rs 6,438 million, registering a growth of 11% year-on-year and 29% quarter-on-quarter, broadly in line with market expectations. Management attributed the performance to a gradual improvement in overall demand conditions and sustained momentum across key product categories.
Strong Faucetware Growth Supports Revenue Expansion
CERA’s faucetware business emerged as the key growth driver during the quarter, delivering a robust 24.3% YoY increase in revenues, while the sanitaryware segment recorded a healthy 10.7% YoY growth. Faucetware and sanitaryware contributed 43% and 46% respectively to total revenues during the quarter.
Project sales accounted for 38% of topline revenues, remaining stable sequentially, while the retail segment also witnessed encouraging recovery trends.
EBITDA Margins Improve Sequentially
The company reported EBITDA of Rs 979 million, up 92% QoQ, though down 7% YoY due to elevated input costs. EBITDA margins stood at 15.2%, improving sharply by 498 basis points sequentially, and exceeding estimates.
Recurring PAT for the quarter came at Rs 667 million, reflecting a 58% QoQ increase, excluding exceptional items related to reversal of excess provisions in the previous quarter.
Management highlighted that calibrated price increases implemented in March 2026 across faucetware and sanitaryware categories were aimed at partially offsetting rising raw material costs, especially brass prices.
Premium and Value Segment Expansion Continues
CERA stated that its premium brand Senator has made meaningful progress during FY26, with product portfolios, channel presence, dedicated teams, and experience centres now operational. The company plans to further strengthen its positioning in the premium category through continued investments and brand-building initiatives.
Additionally:
- CERA Luxe is expanding its footprint in the premium and contemporary segment.
- Polipluz is enhancing the company’s reach within the value segment.
- The core CERA brand continues to remain the primary driver of volume-led growth.
Healthy Balance Sheet and Strong Cash Flow
The company maintained a strong financial position with net cash of Rs 8.5 billion as of March 2026, compared to Rs 6.8 billion a year earlier.
Operating cash flow improved significantly to Rs 2.1 billion in FY26, versus Rs 1.2 billion in FY25, while gross capex stood at Rs 209 million during the year.
Dividend Recommendation
The board has recommended a dividend of Rs 75 per share for FY26, reflecting confidence in the company’s long-term growth outlook and healthy cash generation capabilities.
Outlook
Management remains cautiously optimistic about demand recovery and expects operating margins to improve gradually as input cost pressures stabilize and pricing actions take effect. The company also anticipates better control over discounts and operational efficiencies in the coming quarters.
At the current market price of Rs 5,750, the stock trades at 29x FY27E EPS and 25x FY28E EPS.
Earnings Call Details
CERA Sanitaryware’s management will host a conference call on:
Date: Saturday, May 09, 2026
Time: 10:30 AM IST
Dial-in: +91 22 6280 1141 / +91 22 7115 8042
Financial Highlights (FY27E / FY28E)
| Particulars | FY27E | FY28E |
|---|---|---|
| Sales | Rs 23,006 Mn | Rs 25,872 Mn |
| EBITDA | Rs 3,359 Mn | Rs 3,881 Mn |
| EBITDA Margin | 14.6% | 15.0% |
| PAT | Rs 2,601 Mn | Rs 2,972 Mn |
| EPS | Rs 201.7 | Rs 230.5 |
|
|
||
