Cera Sanitaryware FY26 Results: Revenue Up 7%, EBITDA Contracts, ₹75 Dividend Approved
Cera Sanitaryware reported FY26 revenue from operations of ₹2,05,011.98 lakhs, up 7% YoY, while net profit declined 17.2% to ₹20,418.56 lakhs due to elevated input costs. Q4 FY26 revenue grew 11.4% YoY to ₹64,381.58 lakhs, with EBITDA margin contracting 310 bps to 15.2%. The Board recommended a ₹75 per share dividend, with results published in Business Standard and Navgujarat Samay on 9th May, 2026.
*this image is generated using AI for illustrative purposes only.
Cera Sanitaryware Limited announced its audited financial results for the quarter and year ended 31st March, 2026, subsequently published in English daily Business Standard, Ahmedabad and Gujarati daily Navgujarat Samay, Ahmedabad on 9th May, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company reported a 7.0% year-on-year growth in revenue from operations to ₹2,05,011.98 lakhs for FY26, up from ₹1,91,525.12 lakhs in the previous year. However, net profit declined by 17.2% to ₹20,418.56 lakhs compared to ₹24,648.43 lakhs in FY25, impacted by elevated input costs and exceptional items. EBITDA for FY26 stood at Rs. 2,692 million, representing 13.1% of revenue from operations, compared to Rs. 2,907 million or 15.2% in FY25, a contraction of 210 basis points. The Board has recommended a dividend of ₹75 per share for the financial year. The statutory auditors, M/s. Singhi & Co., Chartered Accountants (FRN: 302049E), issued an unmodified audit opinion on the financial results. Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the audio recording of the Q4 FY2026 Earnings Conference Call held on 9th May, 2026 has been made available on the company's website.
Financial Performance: FY26 vs FY25
For the full year, total income stood at ₹2,10,297.89 lakhs against ₹1,97,774.96 lakhs in FY25. Total expenses increased to ₹1,82,605.96 lakhs from ₹1,67,015.29 lakhs. Profit Before Tax (PBT) decreased to ₹26,911.25 lakhs from ₹30,609.24 lakhs in the prior year. The table below summarises the key financial metrics for the fiscal year:
| Metric | FY26 (Audited) | FY25 (Audited) |
|---|---|---|
| Revenue from Operations (₹ in Lakhs): | 2,05,011.98 | 1,91,525.12 |
| Other Income (₹ in Lakhs): | 5,285.91 | 6,249.84 |
| Total Income (₹ in Lakhs): | 2,10,297.89 | 1,97,774.96 |
| Total Expenses (₹ in Lakhs): | 1,82,605.96 | 1,67,015.29 |
| Profit Before Tax (₹ in Lakhs): | 26,911.25 | 30,609.24 |
| Net Profit (₹ in Lakhs): | 20,418.56 | 24,648.43 |
| Total Comprehensive Income (₹ in Lakhs): | 20,450.47 | 24,559.34 |
| Basic EPS (₹): | 158.31 | 190.40 |
| Diluted EPS (₹): | 158.31 | 190.40 |
Expense Breakdown: FY26 vs FY25
The increase in total expenses was driven primarily by higher purchases of stock-in-trade and employee benefit costs. The key expense line items are presented below:
| Expense Item | FY26 (₹ in Lakhs) | FY25 (₹ in Lakhs) |
|---|---|---|
| Cost of Materials Consumed: | 26,625.14 | 25,172.73 |
| Purchases of Stock-in-Trade: | 75,941.12 | 69,457.79 |
| Changes in Inventories: | 1,264.12 | (3,669.16) |
| Employee Benefits Expense: | 25,943.24 | 24,154.29 |
| Finance Costs: | 646.78 | 711.57 |
| Depreciation & Amortisation: | 3,865.75 | 3,851.49 |
| Other Expenses: | 48,319.81 | 47,336.58 |
| Total Expenses: | 1,82,605.96 | 1,67,015.29 |
Quarterly Performance: Q4 FY26
In the fourth quarter, revenue from operations grew by 11.4% year-on-year to ₹64,381.58 lakhs (Rs. 6,438 million), compared to ₹57,797.36 lakhs in Q4 FY25. EBITDA for the quarter stood at Rs. 979 million, representing 15.2% of revenue from operations, compared to Rs. 1,056 million or 18.3% in Q4 FY25, a contraction of 310 basis points. Profit before exceptional items and tax for the quarter stood at ₹9,285.42 lakhs versus ₹10,957.19 lakhs in the year-ago quarter. Net profit for Q4 FY26 was ₹7,733.59 lakhs (Rs. 773 million), down from ₹8,558.28 lakhs in the corresponding period last year. Basic and diluted EPS for the quarter stood at ₹59.96, compared to ₹66.36 in Q4 FY25.
| Metric | Q4 FY26 (Audited) | Q3 FY26 (Unaudited) | Q4 FY25 (Audited) |
|---|---|---|---|
| Revenue from Operations (₹ in Lakhs): | 64,381.58 | 49,897.49 | 57,797.36 |
| Total Income (₹ in Lakhs): | 65,010.24 | 51,038.28 | 59,374.02 |
| EBITDA (Rs. in million): | 979 | — | 1,056 |
| EBITDA Margin (%): | 15.2% | — | 18.3% |
| PBT before Exceptional Items (₹ in Lakhs): | 9,285.42 | 5,069.61 | 10,957.19 |
| Exceptional Items (₹ in Lakhs): | 1,065.29 | (1,845.97) | (150.43) |
| Profit Before Tax (₹ in Lakhs): | 10,350.71 | 3,223.64 | 10,806.76 |
| Net Profit (₹ in Lakhs): | 7,733.59 | 2,366.81 | 8,558.28 |
| Basic & Diluted EPS (₹): | 59.96 | 18.35 | 66.36 |
Exceptional Items
The financial results include notable exceptional items in both FY26 and FY25. During the quarter ended December 2025, the company recognised a provision of ₹1,845.97 lakhs towards incremental past service cost for gratuity and leave liabilities under the new Labour Codes, which became effective from 21st November 2025. Subsequent to actuarial valuation and professional advice, the liability as at March 31, 2026 was reassessed at ₹780.68 lakhs, resulting in a reversal of excess provision of ₹1,065.29 lakhs in the March 2026 quarter under exceptional items. The net exceptional item for FY26 stands at ₹(780.68) lakhs. During the March 2025 quarter, the company had written off its entire investment of ₹806.00 lakhs in Milo Tile LLP following an amicable settlement, with ₹150.43 lakhs recognised as an exceptional item in that quarter.
Management Commentary
Commenting on the performance, Mr. Vikram Somany, Chairman & Managing Director, stated, "We are pleased to report an improved topline performance in Q4 FY26, with revenues growing by 11.4% year-on-year, reflecting a gradual improvement in demand conditions. The sanitaryware and faucetware segments contributed 46% and 43% of overall revenues, registering growth of 10.7% and 24.3%, respectively. The project-led business accounted for 38% of the topline, while the retail channel also witnessed encouraging recovery during the quarter."
He further noted that calibrated price revisions were implemented across faucetware and sanitaryware, effective March 2026, to partly offset the impact of elevated input costs, particularly in brass. The company expects cost pressures to moderate gradually and remains focused on regaining operating efficiencies. On the brand architecture, Mr. Somany highlighted that the premium brand Senator has made encouraging progress with key building blocks in place across product portfolio, channel presence, teams, and experience centres. CERA Luxe is enhancing the company's presence in the premium and contemporary segments, while Polipluz provides a strong opportunity to address the value segment. The core CERA brand continues to be the primary driver of volume-led growth.
Balance Sheet Highlights
As at 31st March, 2026, total assets stood at ₹1,95,820.29 lakhs compared to ₹1,84,091.42 lakhs as at 31st March, 2025. Total equity increased to ₹1,47,233.85 lakhs from ₹1,35,034.32 lakhs. Current investments grew to ₹80,120.32 lakhs from ₹67,174.19 lakhs, while inventories moderated to ₹39,576.56 lakhs from ₹40,581.93 lakhs. Borrowings declined significantly to ₹87.22 lakhs from ₹1,553.52 lakhs in the prior year.
| Balance Sheet Item | 31.03.2026 (₹ in Lakhs) | 31.03.2025 (₹ in Lakhs) |
|---|---|---|
| Total Assets: | 1,95,820.29 | 1,84,091.42 |
| Total Equity: | 1,47,233.85 | 1,35,034.32 |
| Current Investments: | 80,120.32 | 67,174.19 |
| Inventories: | 39,576.56 | 40,581.93 |
| Trade Receivables: | 27,386.93 | 26,796.41 |
| Cash & Cash Equivalents: | 1,284.72 | 411.84 |
| Short-term Borrowings: | 87.22 | 1,553.52 |
Cash Flow Summary
For the year ended 31st March, 2026, net cash generated from operating activities stood at ₹21,189.15 lakhs, significantly higher than ₹11,560.04 lakhs in the prior year. Net cash used in investing activities was ₹8,847.78 lakhs, compared to net cash generated of ₹12,818.44 lakhs in FY25. Net cash used in financing activities was ₹11,468.49 lakhs versus ₹25,759.06 lakhs in FY25, the latter having included a buyback of equity shares. The net increase in cash and cash equivalents for FY26 was ₹872.88 lakhs, with closing cash and cash equivalents at ₹1,284.72 lakhs.
| Cash Flow Item | FY26 (₹ in Lakhs) | FY25 (₹ in Lakhs) |
|---|---|---|
| Net Cash from Operating Activities: | 21,189.15 | 11,560.04 |
| Net Cash from Investing Activities: | (8,847.78) | 12,818.44 |
| Net Cash from Financing Activities: | (11,468.49) | (25,759.06) |
| Net Increase/(Decrease) in Cash: | 872.88 | (1,380.58) |
| Closing Cash & Cash Equivalents: | 1,284.72 | 411.84 |
Dividend and Corporate Actions
The Board of Directors recommended a dividend of ₹75 per fully paid-up equity share of ₹5 each for the financial year 2025-26, subject to shareholder approval at the ensuing Annual General Meeting. The Register of Members and Share Transfer Books will remain closed from 8th July, 2026 to 15th July, 2026 (both days inclusive). The key corporate action details are outlined below:
| Parameter | Details |
|---|---|
| Dividend Per Share (₹): | 75 |
| Face Value (₹): | 5 |
| Record Date: | 7th July, 2026 |
| Book Closure: | 8th July, 2026 to 15th July, 2026 |
| Annual General Meeting: | 23rd July, 2026 |
Additionally, during the September 2025 quarter, the company divested its entire 51% stake in two subsidiary LLPs — Packcart Packaging LLP and Race Polymer Arts LLP — on 29th September 2025. Consequent to this divestment, both entities ceased to be subsidiaries of the company, and accordingly, Cera Sanitaryware has published only standalone financial results for the quarter and year ended 31st March, 2026.
Historical Stock Returns for Cera Sanitaryware
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.98% | +8.25% | +12.53% | +0.65% | -12.18% | +53.18% |
How quickly can Cera Sanitaryware restore its EBITDA margins to the 15%+ range if brass and other input costs moderate, and what price revision strategy is planned beyond the March 2026 increases?
Will the premium Senator and CERA Luxe brand segments generate sufficient margin uplift to offset volume-driven pressure from the value-focused Polipluz segment in FY27?
Given the significant buildup in current investments (₹80,120 lakhs) and near-zero borrowings, is the company evaluating capital allocation alternatives such as acquisitions, capacity expansion, or another share buyback?
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