Cera Sanitaryware (532443) Q3 25/26 earnings summary

Executive summary

• Achieved 11.1% year-over-year revenue growth in Q3 FY26, following a 5-6% sequential increase in Q2, indicating a sustained recovery trend.

• Growth attributed to improved market traction, a healthy real estate upcycle, and strategic focus on premiumization and channel strategies.

• Ongoing investments in brand architecture (Senator, Polyplus), digital dealer management, and operational efficiency to support long-term growth.

• 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.

• Statutory auditors issued an unmodified limited review report on these results.

Financial highlights

• Q3 FY26 revenue from operations: INR 499 crores, up from INR 449 crores 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.

• Profit after tax: INR 24 crores, down from INR 46 crores in Q3 FY25; EPS at INR 18.35 vs. INR 35.56.

• One-time exceptional items: INR 12.2 crores (gratuity) and INR 6.26 crores (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 Q4 margins to recover to 13-14%, with a return to 15-17% margin range in the second half of next fiscal year.

• Full-year revenue growth projected at 7-8%, with double-digit growth momentum anticipated to continue.

• Price increases of 11% (faucetware) and 4% (sanitaryware) expected to offset recent input cost inflation.

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