This article first appeared on GuruFocus .
Release Date: November 12, 2025
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 steady performance in Q2 despite a subdued demand environment, with a year-on-year growth of 1.4% in the sanitary segment.
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The company has successfully rolled out a dealer management system, onboarding over 200 dealers, which enhances data visibility and supports faster decision-making.
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Cera Sanitaryware Ltd ( BOM:532443 ) continues to benefit from strong brand equity and deep relationships in the real estate sector, with project sales accounting for 39% of the top-line.
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The company is making strategic progress with its premium brand Senator and the newly launched Poly Plus, aiming to expand its market reach.
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Innovation and new product development remain core to the company's strategy, with new product launches contributing about 33% of overall sales.
Negative Points
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Revenue from operations for Q2 remained largely flat compared to the previous year, indicating challenges in achieving significant growth.
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The EBITDA margin slightly declined from 14.2% to 13.8% due to increased input costs, despite efforts in operational efficiency.
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Profit after tax decreased from INR68 crores to INR57 crores, partly due to the absence of deferred tax income recognized in the previous year.
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The company faces sluggish demand in the retail segment, which has impacted overall growth prospects.
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There is a noted increase in inventory and receivable days, leading to a rise in net working capital days from 72 to 77 days.
Q & A Highlights
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Warning! GuruFocus has detected 3 Warning Signs with BSP:ENJU3.
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Q: Given the 2% growth in H1 FY26, is the full-year growth target of 13-14% still achievable? A: We remain optimistic about H2 performance, expecting a 10-12% growth, leading to a full-year growth of around 7-8%. (Respondent: Unidentified_3)
Q: Will operating margins need to be adjusted given the growth outlook? A: Operating margins are expected to remain in the range of 14.5-15%, with improved volumes in H2 supporting margin stability. (Respondent: Unidentified_3)
Q: How is the company planning to capitalize on emerging demand trends? A: We see positive macroeconomic signs such as stable interest rates and government spending on housing, which should support demand recovery in H2 FY26. (Respondent: Unidentified_4)
Q: What is the status of the divestment of the two LLPs, and how does it impact financials? A: The divestment of Ra Polymers LLP and Packard Packaging LLP was completed in Q2, with a total consideration of INR 18.75 crores and a profit of INR 5.54 crores included in other income. (Respondent: Unidentified_4)
Q: What are the expectations for the new brands, Senator and Poly Plus, in terms of revenue contribution? A: We anticipate that Senator and Poly Plus will contribute around INR 40-45 crores in H2, with a projected turnover of INR 150 crores by FY27. (Respondent: Unidentified_3)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
