Cera Sanitaryware Limited has announced its Q3FY26 quarterly results for the quarter ended December 31, 2025, reporting mixed financial performance with revenue growth offset by significant profitability challenges. The sanitaryware manufacturer demonstrated top-line resilience while facing bottom-line pressures during the quarter.

Financial Performance Overview

The company achieved revenue from operations of ₹4,990 million in Q3FY26, marking an 11.1% year-on-year increase from ₹4,493 million in the corresponding quarter of the previous year. However, net profit declined substantially to ₹237 million compared to ₹459 million in Q3FY25, representing a 48.4% year-on-year decrease.

Segment Performance and Market Dynamics

Sanitaryware and faucetware contributed 48% and 40% of overall revenues respectively, with sanitaryware growing 6.4% and faucetware showing stronger growth of 18.2%. The project-led business remained a key support pillar, accounting for 38% of the topline, while the retail segment has started showing positive traction.

Exceptional Items Impact Results

The quarter's performance was significantly affected by exceptional items related to the implementation of New Labour Codes by the Government of India, which became effective from November 21, 2025. The revised definition of wages resulted in incremental provisions for gratuity and leave encashment, which the company has presented as exceptional items due to their one-time nature arising from legislative changes.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company reported revenue from operations of ₹14,063 million compared to ₹13,373 million in the corresponding period last year, reflecting a 5.2% growth. Net profit for the nine-month period stood at ₹1,268 million versus ₹1,609 million in the previous year, showing a 21.2% decline.

Earnings Conference Call Transcript Released

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has released the complete transcript of its Q3FY26 earnings conference call held on February 5, 2026. The transcript provides detailed management commentary on operational performance, strategic initiatives, and market outlook.

Management Commentary and Strategic Initiatives

During the earnings call, management highlighted several key developments. Chairman & Managing Director Vikram Somany noted healthy performance despite challenges, with early signs of improvement in underlying demand conditions across both faucetware and sanitaryware segments. The company is evaluating calibrated price revisions across product categories to mitigate the impact of rising raw material costs, particularly brass prices.

CFO Vikas Kothari explained that EBITDA margins declined to 10.2% in Q3FY26 from 13.2% in Q3FY25, primarily driven by increased trade discounts, elevated brass input costs, higher publicity spend, and pre-operating expenses associated with Senator and POLIPLUZ brand launches.

Strategic Brand Initiatives

Both Senator and POLIPLUZ subsidiaries remain in focused build-out phases, with Senator's flagship store network expanding to 32 operational stores. Management reported combined sales of ₹7-8 crore for both brands in the nine-month period, revising full-year projections to ₹20 crore from the earlier estimate of ₹40 crore due to store setup delays.

Price Revision and Cost Management

Management announced calibrated price increases effective from the earnings call date, with faucetware prices rising by an average of 11% and sanitaryware by 4%. These revisions aim to offset the impact of brass price increases, which rose 12% during Q3FY26 and further escalated to ₹800 per kg in January from an average of ₹640 per kg during the nine-month period.

Regulatory Compliance

The Board of Directors approved these unaudited financial results at their meeting held on February 4, 2026, following review by the Audit Committee. The results have been prepared in accordance with Indian Accounting Standards and reviewed by statutory auditors. The complete earnings call transcript has been made available on the company website for stakeholder reference.

Cera Sanitaryware Limited has officially notified the stock exchanges about an upcoming board meeting scheduled for February 4, 2026. The meeting will focus on reviewing and approving the company's unaudited financial results for the third quarter and nine-month period ending December 31, 2025.

Board Meeting Details

The announcement, made through a formal communication dated January 22, 2026, was addressed to both major Indian stock exchanges. The meeting has been organized in strict compliance with regulatory requirements under SEBI guidelines.

Trading Window Restrictions

In accordance with insider trading regulations, Cera Sanitaryware Limited has implemented mandatory trading restrictions. The trading window for the company's shares closed on January 1, 2026, and will remain closed until specific conditions are met.

Regulatory Compliance

The board meeting notification demonstrates the company's adherence to transparency and disclosure requirements. The communication was signed by Company Secretary Hemal Sadiwala and submitted to both BSE Limited and National Stock Exchange of India Limited simultaneously.

The company trades on BSE under scrip code 532443 and on NSE under the symbol CERA. This scheduled board meeting represents a routine quarterly disclosure process, ensuring shareholders and market participants receive timely access to the company's financial performance data for the third quarter of fiscal year 2026.