Cera Sanitaryware (532443) Q3 25/26 earnings summary

Executive summary

• Achieved 11.1% year-over-year revenue growth in Q3 FY26, following 5-6% sequential growth in Q2, signaling a structural recovery and improved market traction.

• Growth supported by a healthy residential real estate upcycle, premiumization trends, and a meaningful recovery in rural demand.

• Strategic focus on brand positioning, channel strategies, and disciplined innovation, with Senator and Polyplus as key brand initiatives.

• Dealer management and retailer loyalty programs are being digitized to enhance channel efficiency and visibility.

• Unaudited financial results for the quarter and nine months ended 31st December 2025 were approved and reviewed by the Audit Committee and Board of Directors on 4th February 2026.

Financial highlights

• Q3 FY26 revenue from operations: INR 499 crores (₹51,038.28 lakhs), up from INR 449 crores (₹44,927.06 lakhs) in Q3 FY25.

• EBITDA (excluding other income): INR 51 crores, down from INR 59 crores year-over-year; EBITDA margin at 10.2% vs. 13.2% last year, impacted by higher discounts, input costs, and publicity spend.

• Profit after tax: INR 24 crores (₹2,366.81 lakhs), down from INR 46 crores (₹4,585.91 lakhs) in Q3 FY25; EPS at INR 18.35 vs. INR 35.56.

• One-time exceptional items: INR 12.2 crores for gratuity and INR 6.26 crores for leave salary due to New Wage Code implementation.

• Cash and cash equivalents as of Dec 31, 2025: INR 757 crores.

Outlook and guidance

• Management expects the growth trajectory to remain sustainable, with Q4 margins projected to recover to 13-14% and a return to 15-17% margins in the second half of next fiscal year.

• Full-year FY26 revenue growth expected at 7-8%.

• Price increases of 11% for faucetware and 4% for sanitaryware implemented to offset input cost inflation.

• The company continues to monitor the impact of new labour codes and will adjust accounting as further clarifications are issued.