This article first appeared on GuruFocus .
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Revenue:INR499 crores in Q3 FY26, up from INR449 crores in Q3 FY25.
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EBITDA:INR51 crores in Q3 FY26, down from INR59 crores in Q3 FY25.
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EBITDA Margin:10.2% in Q3 FY26, compared to 13.2% in Q3 FY25.
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Profit After Tax:INR24 crores in Q3 FY26, down from INR46 crores in Q3 FY25.
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Earnings Per Share (EPS):INR18.35 in Q3 FY26, compared to INR35.56 in Q3 FY25.
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Segment Revenue Contribution:Sanitaryware 48%, Faucetware 40%, Tiles 10%, Wellness 2%.
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Capacity Utilization:102% for faucetware, 82% for sanitaryware.
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Cash and Cash Equivalents:INR757 crores as of December 31, 2025.
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Capital Expenditure:INR13.2 crores by end of December 2025.
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Working Capital Days:Inventory 84 days, Receivables 33 days, Payables 38 days.
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Release Date: February 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Cera Sanitaryware Ltd ( BOM:532443 ) reported a healthy top-line growth of 11.1% for Q3 FY26, indicating a steady strengthening trend.
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The company is benefiting from a healthy residential up-cycle in the real estate sector, driving demand for higher-value buildings and lifestyle products.
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Strategic initiatives, including sharper brand positioning and disciplined innovation, are improving the company's preparedness and execution capabilities.
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The rollout of flagship stores for the Senator brand is progressing steadily, with 32 stores currently operational.
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Cera Sanitaryware Ltd ( BOM:532443 ) maintains a strong balance sheet with cash and cash equivalents standing at INR757 crores as of December 31, 2025.
Negative Points
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EBITDA margin declined to 10.2% in Q3 FY26 from 13.2% in Q3 FY25, primarily due to increased trade discounts and elevated input costs.
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Gas costs increased during the quarter, impacting overall expenses, with the weighted average cost rising to INR35.70 per cubic metre.
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Profit after tax decreased significantly to INR24 crores compared to INR46 crores in the previous year's quarter.
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The company recorded a one-time impact under exceptional items due to the implementation of the new wage code, affecting long-term employee benefit liabilities.
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Near-term retail demand remains uneven, and the company faces challenges from input cost pressures and a mixed demand environment.
Q & A Highlights
Q: Can you explain the reasons behind the 300 basis point drop in EBITDA margin? A: The drop in EBITDA margin was primarily due to increased trade discounts, higher input costs, particularly brass prices which rose by 12%, and elevated publicity and pre-operative expenses related to the Senator and PolyPlus brand launches. To mitigate these impacts, a price increase has been announced for faucetware and sanitaryware. - Deepak Chaudhary, Vice President - Finance and Investor Relations
Q: Given the recent decline in EBITDA margins, what is the outlook for future margins? A: The current margin decline is seen as a one-off event due to phasing impacts and is not expected to continue. We anticipate returning to margins of 13-14% in Q4, with further improvements expected as the top line grows and the impact of new ventures like Senator and PolyPlus stabilizes. - Deepak Chaudhary, Vice President - Finance and Investor Relations
Q: What is the reason for the stagnancy in revenue growth despite a positive real estate cycle? A: The stagnancy in growth over the past two years is now showing signs of improvement. We have seen revenue growth of 11.1% in Q3 and 5-6% in Q2. We expect to maintain this growth trajectory and end the year with an overall growth of 7-8%. - Vikas Kothari, Chief Financial Officer
Q: Was the growth in the current quarter due to pre-buying before the price hike or actual demand improvement? A: The growth in Q3 was due to actual demand improvement, not pre-buying. The price increase was only announced recently, so it did not impact Q3 sales. - Vikas Kothari, Chief Financial Officer
Q: What are the details of the recent price hike and its sufficiency to cover cost increases? A: We have announced a price hike of 4% for sanitaryware and 11% for faucetware. This increase is expected to cover the current cost increases, particularly in brass prices. If costs continue to rise, we may need to revisit pricing. - Vikas Kothari, Chief Financial Officer
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
