Cera Sanitaryware (532443) Q2 25/26 earnings summary

Executive summary

• Delivered steady performance in Q2 FY 2026 despite subdued retail demand, with project sales providing balance and accounting for 39% of revenue.

• Strategic initiatives included rollout of a dealer management system, expansion of premium (Senator) and value (Polyplus) brands, and continued focus on innovation and new product launches.

• Completed divestment from two LLPs, streamlining operations and focusing on core categories; as of 30th September 2025, there are no subsidiaries or associates.

• Unaudited financial results for the quarter and half year ended 30th September 2025 were approved and reviewed by the Audit Committee and Board of Directors.

Financial highlights

• Q2 FY 2026 revenue from operations was INR 488 crores, flat YoY; EBITDA (excl. other income) at INR 67 crores vs. INR 70 crores YoY; EBITDA margin declined to 13.8% from 14.2%.

• PAT for Q2 FY 2026 was INR 57 crores vs. INR 68 crores YoY, with last year including a one-time deferred tax gain.

• H1 FY 2026 net revenue grew 2.2% YoY to INR 907 crores; EBITDA at INR 120 crores (down from INR 126 crores); PAT at INR 103 crores (down from INR 115 crores).

• Cash and cash equivalents as of 30th September 2025 stood at INR 736 crores.

• Net profit after tax for Q2 FY26 was ₹5,664.76 lakhs, down from ₹6,807.68 lakhs in Q2 FY25; half-year net profit was ₹10,318.16 lakhs, compared to ₹11,504.24 lakhs in the prior year period.

Outlook and guidance

• Full-year FY 2026 revenue growth expected at 7%-8%, with H2 growth projected at 10%-12%.

• Operating margins guided to remain in the 14.5%-15% range for the full year, with improvement expected in H2 due to higher volumes.

• Faucetware segment expected to deliver 8%-10% revenue growth for the year.

• Senator and Polyplus brands targeted to contribute INR 40-45 crores in H2 and INR 150 crores by FY 2027.

• Following the divestment of its LLP subsidiaries, only standalone financial results will be published going forward.