Cera Sanitaryware (532443) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue from operations rose 27.4% YoY to ₹603 crore, with volume-led growth across sanitaryware, faucetware, tiles and construction chemicals.

• Q2 EBITDA was ₹73 crore, up 9.1% YoY; margin fell to 12.2% from 14.2% YoY but improved 210 bps QoQ.

• PAT was ₹56 crore versus ₹57 crore a year earlier; management expects progressive profitability improvement in H2 FY27.

Financial highlights

• Q2 revenue was ₹60,295.95 lakh versus ₹47,340.78 lakh; H1 revenue was ₹108,894.11 lakh versus ₹88,021.39 lakh.

• H1 FY27 EBITDA was ₹122 crore, up 1.9%, and PAT was ₹101 crore, down 1.7%.

• Q2 PAT was ₹5,613.62 lakh versus ₹5,664.76 lakh; basic and diluted EPS were ₹43.52 versus ₹43.92.

• Q2 total expenditure rose 30.4% YoY to ₹530 crore; raw-material costs increased 40.6% to ₹338 crore.

• Management attributed Q2 margin drag to brass (-2.1%), publicity (-0.5%), sanitaryware and tile procurement (-0.3%) and discounts (-1.7%).

Outlook and guidance

• Management expects to surpass the FY27 revenue-growth target of 18%-20% and remains confident in a 13%-14% full-year EBITDA margin.

• H2 profitability is expected to improve progressively as pricing actions, cost efficiencies, operating leverage and discount reductions flow through.

• September faucetware price increases are expected to benefit realizations from late Q3; most new-priced project orders are expected in late Q3 and Q4.

• No further Q3 price increases were planned; FY28 revenue guidance was deferred pending FY27 results and greater clarity on demand and manufacturing capacity.