Cera Sanitaryware (532443) Q1 26/27 earnings summary

Executive summary

• Q1 FY 2027 revenue grew 19.5% year-over-year, driven by strong volume growth in both sanitaryware and faucetware segments, with robust retail and project business performance.

• Pricing actions in March and May 2026 led to cumulative price increases of 12% in sanitaryware and 16% in faucetware, well-absorbed by the market.

• Operational efficiencies and digital transformation, including the extension of the dealer management system to retailer loyalty programs, enhanced execution and channel engagement.

• Brand-building initiatives included a new campaign featuring Kriti Sanon, with INR 85 crore allocated for FY 2027 marketing spend.

• Unaudited financial results for the quarter ended 30th June 2026 were approved by the Board and reviewed by the Audit Committee, with a limited review report issued by statutory auditors.

Financial highlights

• Revenue from operations for Q1 FY 2027 was INR 486 crore (₹48,598.16 lakhs), up from INR 407 crore (₹40,680.61 lakhs) in Q1 FY 2026 (restated for accounting changes).

• EBITDA (excluding other income) was INR 49.2 crore, down from INR 53.1 crore year-over-year; EBITDA margin declined to 10.1% from 13.1%.

• Profit after tax stood at INR 45 crore (₹4,531.04 lakhs) versus INR 47 crore (₹4,653.40 lakhs) in Q1 FY 2026; EPS was INR 35.13 compared to INR 36.08.

• Gross margin dropped to 46% from historical levels above 50%, mainly due to elevated input costs, especially brass.

• Total expenses for Q1 FY27 were ₹44,745.58 lakhs, up from ₹36,427.14 lakhs in Q1 FY26.

Outlook and guidance

• FY 2027 revenue growth guidance maintained at 18%-20%, with EBITDA margin guidance of 13.5%-14%.

• Margin recovery expected from Q3 FY 2027 as project contracts transition to revised pricing and one-time cost impacts subside.

• Gross margin expected to recover to 51% if input costs stabilize.

• The company continues to monitor regulatory changes, especially regarding the New Labour Codes, and will account for any additional impact as clarifications emerge.