Cera Sanitaryware Reports Q2 Net Profit Decline Amid Flat Revenue

Cera Sanitaryware Limited , a leading player in the sanitaryware industry, has reported its financial results for the second quarter of the fiscal year 2025-26. The company experienced a decline in net profit despite maintaining stable revenue figures.

Financial Performance

Metric	Q2 FY2025-26	Q2 FY2024-25	YoY Change
Net Profit	₹566.00 million	₹680.00 million	-16.76%
Revenue	₹4.90 billion	₹4.90 billion	0.00%
EBITDA	₹671.00 million	₹696.00 million	-3.59%
EBITDA Margin	13.76%	14.20%	-44 bps

Cera Sanitaryware's net profit for the quarter ended September 30, 2025, stood at ₹566.00 million, marking a 16.76% decrease from ₹680.00 million reported in the same quarter of the previous year. This decline in profitability came despite the company maintaining its revenue at ₹4.90 billion, which remained flat year-over-year.

Operational Highlights

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a slight decrease to ₹671.00 million from ₹696.00 million in the corresponding quarter last year, representing a 3.59% decline. Consequently, the EBITDA margin contracted by 44 basis points, dropping to 13.76% from 14.20% in the previous year's quarter.

Key Takeaways

Net profit decreased by 16.76% year-over-year
Revenue remained flat at ₹4.90 billion
EBITDA declined by 3.59%
EBITDA margin contracted by 44 basis points

The financial results suggest that Cera Sanitaryware faced challenges in maintaining its profit margins during the quarter. The flat revenue indicates a stable market demand, but the company may have experienced increased costs or competitive pressures affecting its bottom line.

Investors and market analysts will likely be monitoring Cera Sanitaryware's future performance and any strategies the company may implement to address the profitability decline while maintaining its market position in the sanitaryware industry.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.50%	-4.70%	-5.95%	-13.14%	-22.47%	+82.25%

Cera Sanitaryware Ltd , a prominent player in the sanitaryware industry, has received two demand orders totaling Rs 63.11 lakh from the Assistant Commissioner in Medchal Jurisdiction, Telangana. The company disclosed this information in a regulatory filing on September 25, 2025, in compliance with SEBI regulations.

Details of the Demand Orders

The tax authority issued two separate orders on September 24, 2025:

The first order, under section 74 of the CGST Act and corresponding Telangana GST Act, demands Rs 40.76 lakh. This amount includes a tax of Rs 20.38 lakh and an equal penalty.
The second order, under sections 73 and 74 of the same acts, demands Rs 22.34 lakh, comprising a tax of Rs 11.35 lakh and a penalty of Rs 10.99 lakh.

Allegations and Company's Stance

The Assistant Commissioner alleges that Cera Sanitaryware has:

Short-paid taxes
Improperly availed input tax credits blocked under section 17(5) of the GST Act

In response, Cera Sanitaryware has stated that there is no material impact on its financials or operations due to these demand orders. The company believes that the demands are not maintainable and plans to file appeals against both orders.

Company's Disclosure

Hemal Sadiwala, Company Secretary of Cera Sanitaryware Limited, signed the regulatory filing, ensuring transparency with investors and compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Implications

While the total demand of Rs 63.11 lakh is significant, Cera Sanitaryware's confident stance suggests that the company is prepared to challenge the tax authority's claims. The outcome of the appeals, once filed, will be crucial in determining the final financial implications for the company.

Investors and stakeholders will likely keep a close eye on the developments of this case, as it could set a precedent for similar GST-related disputes in the sanitaryware industry.