Cera Sanitaryware reports a 19.5% rise in first-quarter revenue, with growth in sanitaryware, faucetware, and tiles, but faces margin pressures due to rising costs and market headwinds, while maintaining optimistic full-year guidance.
Cera Sanitaryware said first-quarter revenue rose 19.5% to INR486 crores in the three months to June 30, as stronger sales of sanitaryware, faucetware and tiles outweighed weakness in its wellness business. Even so, profitability came under pressure: earnings before interest, tax, depreciation and amortisation, excluding other income, fell to INR49.2 crores from INR53.1 crores a year earlier, while the EBITDA margin slipped to 10.1% from 13.1%.
Profit after tax eased to INR45 crores from INR47 crores, and earnings per share fell to INR35.15 from INR36.08. Reuters-style market summaries of the result showed the company’s core categories still expanding, with sanitaryware revenue up 14%, faucetware up 25% and tiles up 22%, while wellness sales declined 7%. The company said sanitaryware accounted for 47% of sales and faucetware for 40%.
Management pointed to a mix of temporary and structural cost pressures behind the margin squeeze. Gas costs rose sharply, with the weighted average price increasing to INR48.43 per cubic metre from INR33.17 a year earlier. The company also said it booked a one-time provision linked to a long-term worker settlement and absorbed lower fixed-cost leverage because one kiln was running, which hurt utilisation and margins in the quarter.
At the same time, Cera said its working-capital discipline improved. The net cycle shortened to 50 days from 75 days a year earlier, helped by lower inventory and receivable days and slightly longer payables. Cash and cash equivalents stood at INR943 crores as of June 30, 2026, giving the company room to fund expansion, marketing and other investments.
Management kept its full-year revenue growth guidance at 18% to 20% and reiterated its EBITDA margin target of 13.5% to 14%, arguing that much of the first-quarter pressure should ease as pricing actions flow through and project contracts reset. The company has also budgeted about INR43 crores for capital expenditure and INR85 crores for brand-building in FY27.
Cera is leaning on both capacity expansion and brand investment to support that plan. Company executives said the faucetware brownfield project remains on track for Q4 FY27, while a deferred greenfield sanitaryware decision may be revisited later in the fiscal year if demand stays firm. The company also highlighted a new retailer loyalty programme, a marketing push centred on “Your Moment of Cera” and an advertising campaign featuring Kriti Sanon as it seeks to deepen consumer engagement.
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