Cera Sanitaryware Ltd

Cera Sanitaryware Q3 FY26: Revenue Up 11.1% to ₹499 Cr, Margins Dip 📉

- Revenue grew 11.1% year-on-year in Q3 FY26 to INR 499 crore, showing recovery from previous quarters.

- EBITDA margin declined to 10.2% from 13.2% in Q3 FY25, due to higher trade discounts, brass input costs (up ~12%), and increased publicity spend.

- Profit after tax was INR 24 crore, down from INR 46 crore, impacted by a one-time exceptional item of INR 18.46 crore from New Wage Code implementation.

- Capacity utilization: Faucetware at 102%, Sanitaryware at 82%.

- Announced price increases: ~11% for Faucetware and ~4% for Sanitaryware to counter input cost pressures.

- New brands Senator and POLIPLUZ in investment phase; Senator has 32 stores, POLIPLUZ distributed through 65 distributors and 750 dealers.

- Working capital improved slightly, with net working capital days decreasing from 81 to 79 days; cash and equivalents stood at INR 757 crore.

- Management expects margin recovery to 13-14% in Q4 FY26 and 15-17% in H2 FY27, citing one-off factors in Q3.

- Demand showing green shoots in retail and projects; geographic sales mix: Tier 3 cities 41%, Tier 1 36%, Tier 2 23%.

- Capex for FY26 is INR 13.2 crore, focused on maintenance and brand initiatives; no immediate plans for new Sanitaryware facility.