Cera Sanitaryware (532443) Q2 25/26 earnings summary

Executive summary

• Q2 FY 2026 saw steady performance despite subdued retail demand, with sanitaryware segment growing 1.4% year-over-year and project sales 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, which contributed 33% of sales.

• Divestment from two LLPs completed, streamlining the portfolio and shifting to standalone reporting.

• 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, with a limited review report issued by statutory auditors.

Financial highlights

• Q2 FY 2026 revenue was INR 488 crores, nearly flat year-over-year; EBITDA (excl. other income) was INR 67 crores, down from INR 70 crores; EBITDA margin declined to 13.8% from 14.2%.

• Profit after tax was INR 57 crores, lower than last year due to absence of one-time deferred tax income; EPS at INR 43.92 vs. INR 52.44.

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

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

• 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 anticipated 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 projected to contribute INR 40-45 crores in H2 and INR 150 crores by FY 2027.

• Following the divestment of its LLP subsidiaries, the company will publish only standalone financial results going forward, as there are no longer any subsidiaries or associates.