According to reports from PL Capital, Cera Sanitaryware demonstrated a significant turnaround with double-digit year-on-year revenue growth of 11% in both Q4FY26 and Q3FY26, marking a sharp improvement after several quarters of subdued performance. The company's stock has responded positively, gaining over 11% in the past month as investors recognize the recovery signs. As per PL Capital, the turnaround comes after weak retail demand and stiff competition from smaller manufacturers in Morbi weighed on growth, as their lower cost structures had often made it difficult for organized players like Cera to raise prices or expand margins.
As reported by PL Capital, Cera expects to benefit from ongoing disruptions in the Morbi cluster due to labour and infrastructure challenges, enabling market share gains supported by adequate inventory, stronger in-house manufacturing capabilities and stable supply availability. The company's premium sanitaryware brand, Senator, and polymer-based products brand, Polipluz, are projected to contribute ₹70-80 crore in revenue in FY27, versus just ₹19 crore in FY26. Rising gas prices and disruptions across the region are reducing the cost advantage of smaller manufacturers, potentially making it easier for organized players like Cera to compete effectively.
According to the company's performance data, faucetware emerged as a key growth driver, contributing 43% of Q4FY26 revenues and clocking 24% year-on-year growth. Sanitaryware formed 46% of Cera's revenues and grew by 10.7%. The company expects sanitaryware volumes to grow 7-8% this year, while faucetware volumes are projected to grow faster at 10-12%. Cera is expanding faucetware production capacity from 4.3 lakh pieces a month to 5 lakh pieces by FY27-end. The company is also building businesses beyond core product categories, with retail demand beginning to improve in the second half of FY26 and continuing at the start of FY27.
To offset higher input costs, particularly the sharp rise in brass prices, Cera has recently implemented price hikes of around 12% for sanitaryware and 16% for faucetware. The company has guided for 18-20% revenue growth and 50-100 basis points of Ebitda margin expansion in FY27 from 13% in FY26, despite higher spending on branding and facing additional wage costs. If Cera can retain these price hikes while demand improves, profitability could rise significantly. The company is also evaluating a new greenfield sanitaryware plant, with the first phase of investment estimated at around ₹150 crore.
