Cera Sanitaryware (532443) Q1 25/26 earnings summary

Executive summary

• Q1 FY2026 saw stable performance despite continued softness in consumer demand, with year-on-year segment growth of 13.4% driven by stable demand and expanded SKU portfolio.

• B2B segment contributed 38% of revenues, up from 36% in Q1 FY2025, supported by increased construction activity and improved developer sentiment.

• Strategic initiatives included the expansion of the premium Sanitare brand and the launch of the value-focused Polyplus brand, targeting new customer segments.

• Standalone and consolidated unaudited financial results for the quarter ended 30th June 2025 were approved and reviewed by the Audit Committee and Board of Directors.

• Statutory auditors issued unmodified review reports for both standalone and consolidated results.

Financial highlights

• Revenue from operations for Q1 FY2026 was INR 419 crore, up 5.4% from INR 398 crore in Q1 FY2025; consolidated revenue was ₹42,218.73 lakhs, up from ₹40,071.18 lakhs.

• EBITDA remained stable at INR 72 crore; EBITDA margin declined to 16.4% from 17.5% due to inflation and new brand launch costs.

• Profit after tax was INR 47 crore, nearly flat year-over-year; consolidated net profit after tax was ₹4,705.09 lakhs, compared to ₹4,745.78 lakhs in Q1 FY25.

• Basic and diluted EPS for Q1 FY26 stood at ₹36.08 (standalone) and ₹36.10 (consolidated).

• Cash and cash equivalents stood at INR 778 crore as of June 30, 2025.

Outlook and guidance

• Management expects higher single-digit to low double-digit revenue growth for FY2026, with recovery anticipated in H2.

• Margin guidance remains at 15%-17% for the next two to three years, despite project business growth and new brand investments.

• Long-term goal to outperform industry by 6%-7% and reach INR 2,900 crore revenue by March 2027, contingent on market recovery.

• Dividend of ₹65 per fully paid-up equity share for FY25 was recommended and approved at the AGM.