According to the latest unaudited financial results announced on August 7, 2026, Cera Sanitaryware reported a 3% decline in standalone net profit for the quarter ended June 30, 2026. The company's net profit fell to ₹45.31 crore compared to ₹46.53 crore recorded in the corresponding quarter of the previous year. The board approved these results, which were previously reviewed by the Audit Committee on the same day. The effective tax rate for the quarter was approximately 24.24%. The company's PAT margin stood at 9.32% for the quarter, compared to 11.44% in Q1 FY26 and 12.39% in Q4 FY26, declining by 2.11 percentage points year-on-year and 3.07 percentage points quarter-on-quarter. Earnings per equity share (EPS) for the quarter was ₹35.13 for both basic and diluted EPS, a decrease compared to ₹59.96 in the previous quarter and ₹36.08 in the corresponding quarter of the previous year.
As reported in the latest financial results, Cera Sanitaryware achieved significant revenue growth during the June 2026 quarter. Revenue from operations stood at ₹485.98 crore for the quarter ended June 30, 2026, compared to ₹406.81 crore in the same period of the previous year, registering a 19.46% year-on-year increase. However, revenue showed a sequential decline from ₹623.99 crore in the previous quarter ended March 31, 2026, with a 22.12% quarter-on-quarter decrease. The company's total income for the quarter was ₹507.26 crore, with expenses amounting to ₹447.46 crore, leading to a profit before exceptional items and tax of ₹59.81 crore. Total revenue stood at ₹507.26 crore, registering a 19.24% YoY increase from ₹425.40 crore in Q1 FY26, though it decreased 19.52% QoQ from ₹630.27 crore in Q4 FY26. Other Comprehensive Income (OCI) for the quarter was ₹8.23 lakhs, with total comprehensive income reaching ₹4,539.27 lakhs.
According to Motilal Oswal's latest research report dated August 8, 2026, Cera Sanitaryware's sanitaryware and faucetware segments delivered strong performance with 14% and 25% YoY revenue growth respectively. This growth was driven by volume increases of 10% and 18% respectively, along with price hikes of 2% and 4% and favorable product mix contributing approximately 2% each. The company's revenue growth was partially impacted by reclassification of dealer discounts, which reduced revenue by approximately 3% as these were previously adjusted in revenue from other expenses. Despite the strong volume and price growth, margins remained under pressure due to operational factors.
According to Prabhudas Lilladher's latest research report dated August 8, 2026, the company's EBITDA margin contraction in Q1FY27 was primarily driven by one-off factors, including wage settlement, lower fixed-cost absorption due to single-kiln operations, higher contribution from old-price projects, and delayed pass-through of price hikes. Management expects margins to recover from Q3FY27 as these factors normalise and expects FY27 EBITDA margins to recover to ~13.5–14%. The company has implemented cumulative price hikes of ~12% in sanitaryware and ~16% in faucetware Q1FY27 to offset from higher input price. Cera Sanitaryware has maintained its FY27 revenue growth guidance of ~18–20% and expects the growth momentum to sustain in coming quarters.
Motilal Oswal maintains a 'BUY' rating on Cera Sanitaryware (CRS) with a target price of ₹7,384 in its research report dated August 8, 2026, while Prabhudas Lilladher maintains a 'BUY' rating with a target price of ₹7,221. Both brokerages estimate revenue/EBITDA/PAT CAGR of 15.2%/18.9%/22.4% over FY26-28E and maintain the 'BUY' rating based on 30x March 2028 earnings. The research firms have downgraded their earnings estimates by 5.3% for FY27 and 2.8% for FY28 while maintaining confidence in the company's long-term growth prospects. Motilal Oswal notes that a slower-than-expected recovery in sales and margins poses key risks to their positive view on the stock.
The Board of Directors had previously recommended a dividend of ₹75 per fully paid-up equity share for the financial year 2025-26, which was approved by shareholders during the Annual General Meeting held on July 23, 2026. The company's total expenses for the quarter amounted to ₹447.46 crore, with the paid-up equity share capital remaining stable at ₹644.88 lakhs during the quarter.
