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CERA - Cera Sanitary.

📊 NSE: CERA 🏢 Ceramics - Tiles / Sanitaryware 📅 Last Updated: 12/13/2025 20:50

📢 Recent Corporate Announcements

Cera Sanitaryware Reports 50% Gas Supply Cut from Sabarmati Gas; Operations Remain Stable

🔵 WATCH ⭐ 6/10

REGULATORY 📅 05 Mar 2026, 11:00 AM

Cera Sanitaryware has been notified by Sabarmati Gas Ltd of a 50% reduction in its Daily Contracted Quantity (DCQ) of gas supply effective March 6, 2026. This restriction is a result of the ongoing geopolitical crisis in West Asian countries affecting energy supplies. To mitigate the impact, the company is leveraging its secondary gas supply arrangement with GAIL (India) Ltd and utilizing its current inventory levels. Management has stated that dispatches are continuing as usual and no material impact on business operations is expected at this time.

Sabarmati Gas Ltd to restrict gas supply to 50% of Daily Contracted Quantity (DCQ) starting March 6, 2026.
Supply disruption is attributed to the ongoing geopolitical crisis in West Asian countries.
Company maintains a secondary gas supply arrangement with GAIL (India) Ltd to support production.
Optimum inventory levels are being utilized to ensure product dispatches remain unaffected.
Management currently anticipates no material impact on overall business operations or financial performance.

💡 Investors should monitor the duration of the gas supply restriction and any potential increase in power and fuel costs if alternative gas sources are more expensive. No immediate action is required as the company has diversified supply and sufficient inventory.

Cera Sanitaryware Investor Update: FY25 Revenue at ₹1,915 Cr and Cash Reserves of ₹757 Cr

🟢 POSITIVE ⭐ 7/10

ROUTINE 📅 03 Mar 2026, 11:12 AM

Cera Sanitaryware reported a strong financial position for FY25 with revenue reaching ₹1,915 crore and a robust cash reserve of ₹757 crore. The company remains debt-free and has maintained a consistent dividend payout for over 30 years, with the FY25 dividend distribution at 34% of PAT. Management is pursuing a dual-growth strategy: premiumization through its Senator and CERA Luxe brands, and rural market penetration via the new 'Polipluz' value brand. With a distribution network of 6,900+ dealers and 28,000+ retailers, the company is well-positioned to capture demand across all price segments.

FY25 Revenue stood at ₹1,915 crore with a strong cash and cash equivalents balance of ₹757 crore.
Maintains a zero-debt balance sheet with a high fixed asset turnover ratio of approximately 5.6x.
Dividend payout has increased steadily, reaching 34% of Profit After Tax (PAT) in FY25.
Extensive pan-India reach with 6,900+ dealer partners, 28,000+ retailers, and 2,057 brand stores as of Dec 2025.
Launched 'Polipluz' brand to target the unorganized rural market segment and drive high-volume growth.

💡 Investors should consider Cera a high-quality, debt-free compounder in the building materials space with strong capital allocation discipline. The expansion into rural markets via Polipluz and the focus on premiumization offer multiple levers for long-term growth.

Cera Sanitaryware Reports Exercise of 170 Stock Options Under ESOS 2024

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 17 Feb 2026, 08:43 PM

Cera Sanitaryware has informed the exchanges that employees have exercised 170 stock options under the Employee Stock Option Scheme 2024. These options were part of the 14,950 options granted in June 2024 and vested in June 2025. The exercise is non-dilutive for existing shareholders as the shares are being sourced from the secondary market via the CERA Sanitaryware Employees Welfare Trust. Consequently, there will be no change in the company's paid-up equity share capital.

170 options exercised at an exercise price of Rs. 5 per share (face value).
Total money realized from the exercise of these options amounts to Rs. 850.
The exercise is non-dilutive as shares are sourced from the secondary market, resulting in no change to paid-up capital.
Options were part of a 14,950-unit grant issued on June 5, 2024, with a 5-year vesting schedule.
Previously, 1,236 options from the same vesting period were exercised in June 2025.

💡 This is a routine administrative update regarding employee compensation and has no impact on the company's fundamentals or share capital. Investors do not need to take any action.

Cera Sanitaryware Q3 FY26: Revenue Up 11% to ₹499 Cr, EBITDA Margins Contract to 10.2%

🔴 NEGATIVE ⭐ 8/10

EARNINGS 📅 09 Feb 2026, 06:14 PM

Cera Sanitaryware reported a healthy 11.1% YoY revenue growth to ₹499 crore for Q3 FY26, led by strong performance in Faucetware (+18.2%) and Wellness (+29.4%). However, EBITDA margins contracted significantly to 10.2% from 13.2% due to rising brass costs, higher trade discounts for project participation, and pre-operating expenses for new brands. Net profit was further impacted by an ₹18.46 crore exceptional charge related to the New Wage Code implementation, resulting in a PAT of ₹24 crore compared to ₹46 crore last year. The company has recently announced price hikes to mitigate input cost pressures.

Revenue grew 11.1% YoY to ₹499 crore, driven by Faucetware and a recovery in rural demand.
EBITDA margins fell 300 bps to 10.2% due to higher input costs (brass/clay) and increased trade discounts.
PAT declined to ₹24 crore, impacted by a ₹18.46 crore exceptional item for long-term employee benefits.
Faucetware capacity utilization reached 102%, while Sanitaryware stood at 82%.
Cash and cash equivalents remain strong at ₹757 crore as of December 31, 2025.

💡 Investors should monitor the impact of the recently announced price hikes on margin recovery in the coming quarters. While top-line growth is structural, the significant margin contraction and exceptional costs warrant a cautious approach until profitability stabilizes.

Cera Sanitaryware Releases Q3 FY2026 Earnings Call Audio Recording

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 05 Feb 2026, 02:58 PM

Cera Sanitaryware Limited has officially released the audio recording of its Q3 FY2026 earnings conference call held on February 5, 2026. This disclosure is a standard regulatory requirement under SEBI (LODR) Regulations to ensure all investors have access to management's discussion on quarterly performance. The recording provides insights into the company's financial health and future guidance as discussed with institutional investors and analysts. Shareholders can access the full recording via the link provided on the company's investor relations website.

Audio recording of the Q3 FY2026 earnings call is now available for public access.
The conference call was conducted on February 5, 2026, following the quarterly results announcement.
Submission made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements).
The recording contains management commentary and analyst Q&A regarding the company's latest financial performance.

💡 Investors should listen to the recording to understand management's perspective on market demand and margin outlook. No immediate action is required as this is a routine procedural update.

Cera Sanitaryware Q3 FY26: Revenue up 11.1% to ₹499 Cr, PAT drops 48.4% on one-time costs

🔴 NEGATIVE ⭐ 8/10

EARNINGS 📅 04 Feb 2026, 01:09 PM

Cera Sanitaryware reported a mixed Q3 FY26 with revenue growth of 11.1% YoY to ₹4,990 million, driven by strong performance in the faucetware segment which grew 18.2%. However, profitability was significantly impacted, with EBITDA falling 14% and PAT declining 48.4% YoY to ₹237 million. The margin contraction was primarily due to rising raw material costs, particularly Brass, and a one-time exceptional provision related to new Labour Code regulations. Management is evaluating calibrated price revisions to offset these input costs and expects a gradual recovery in margins.

Revenue from operations grew 11.1% YoY to ₹4,990 million in Q3 FY26.
EBITDA margins contracted by 300 bps to 10.2% due to higher input costs and legislative changes.
Net Profit (PAT) fell sharply by 48.4% YoY to ₹237 million, impacted by one-time labor code provisions.
Faucetware segment showed robust growth of 18.2%, while Sanitaryware grew by 6.4% YoY.
The company has expanded its Senator flagship store network to 32 operational stores.

💡 Investors should monitor the company's ability to pass on rising raw material costs through price hikes in the coming quarters. While the PAT drop is partially due to one-time provisions, the underlying margin pressure suggests a cautious outlook until operational efficiencies improve.

Cera Sanitaryware Q3 Revenue Up 11% to ₹499 Cr; PAT Impacted by ₹18.5 Cr Exceptional Item

🔴 NEGATIVE ⭐ 8/10

EARNINGS 📅 04 Feb 2026, 12:54 PM

Cera Sanitaryware reported an 11.1% YoY increase in revenue from operations to ₹498.97 crore for Q3 FY26. However, Net Profit saw a sharp decline of 48.4% YoY to ₹23.67 crore, primarily due to a one-time exceptional charge of ₹18.46 crore arising from the implementation of the New Labour Codes. Even excluding the exceptional item, Profit Before Tax (PBT) declined by 15.4% YoY to ₹50.70 crore, indicating margin pressure. The company has moved to standalone reporting following the divestment of its subsidiary LLPs in September 2025.

Revenue from operations increased to ₹498.97 crore in Q3 FY26 from ₹449.27 crore in Q3 FY25.
Net Profit fell to ₹23.67 crore from ₹45.86 crore YoY due to a ₹18.46 crore exceptional charge.
Exceptional item includes ₹12.20 crore for Gratuity and ₹6.26 crore for Leave Salary liabilities under New Labour Codes.
Other Expenses rose significantly to ₹128.79 crore in Q3 FY26 compared to ₹118.93 crore in Q3 FY25.
Basic EPS for the quarter dropped to ₹18.35 from ₹35.56 in the corresponding previous year quarter.

💡 Investors should note that while the bottom line was hit by a non-recurring regulatory charge, the underlying operational profit (PBT before exceptional items) also contracted by 15%. Monitor the company's ability to pass on costs and manage rising operating expenses in the coming quarters.

Cera Sanitaryware Schedules Q3 FY26 Earnings Call for February 5, 2026

🟡 NEUTRAL ⭐ 3/10

EARNINGS 📅 28 Jan 2026, 11:12 AM

Cera Sanitaryware Limited has announced that it will declare its Q3 FY26 financial results on February 4, 2026. Subsequently, the company will host an earnings conference call on February 5, 2026, at 10:30 AM IST to discuss the performance. The session will feature management commentary followed by a Q&A for institutional investors and analysts. This event is a key opportunity for stakeholders to understand the company's growth trajectory in the home improvement sector.

Q3 FY26 financial results to be declared on February 4, 2026
Earnings conference call scheduled for February 5, 2026, at 10:30 AM IST
Management discussion to cover sanitaryware, faucetware, and wellness segments
International toll-free dial-in options available for Singapore, HK, USA, and UK

💡 Investors should review the financial results on February 4th and join the call to assess management's commentary on volume growth and input cost pressures.

Cera Sanitaryware Submits SEBI Regulation 74(5) Compliance Certificate for Q3 FY2026

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 08 Jan 2026, 05:02 PM

Cera Sanitaryware Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by MCS Share Transfer Agent Limited, confirms that share certificates received for dematerialization during the quarter ended December 31, 2025, were processed within the mandatory 15-day period. This filing confirms that physical certificates were mutilated and cancelled, and the depository's name was updated in the register of members. This is a standard administrative procedure to ensure the integrity of electronic shareholding records.

Compliance certificate submitted for the quarter ended December 31, 2025.
Confirmation that dematerialization requests were processed and confirmed to depositories within 15 days.
Physical security certificates were mutilated and cancelled after due verification.
The Registrar and Share Transfer Agent (RTA) for this process is MCS Share Transfer Agent Limited.

💡 No action is required as this is a routine regulatory filing. Investors should continue to monitor the company's upcoming quarterly financial performance for fundamental insights.

Cera Sanitaryware to Close Trading Window from January 1, 2026

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 30 Dec 2025, 12:51 PM

Cera Sanitaryware Limited has announced the closure of its trading window for all designated persons and their immediate relatives starting January 1, 2026. This closure is a standard regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations, 2015. The restriction is in anticipation of the upcoming financial results for the quarter and nine months ending December 31, 2025. The trading window will remain closed until 48 hours after the results are officially declared to the exchanges.

Trading window closure effective from January 1, 2026
Closure pertains to financial results for the quarter and nine months ended December 31, 2025
Restriction applies to Designated Persons and their immediate relatives
Window to reopen 48 hours after the announcement of unaudited financial results
Board meeting date for results announcement to be intimated separately

💡 This is a routine regulatory announcement with no impact on company fundamentals. Investors should monitor the upcoming board meeting date for the release of Q3 financial results.

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💰 Financial Performance

Revenue Growth by Segment

In Q2 FY26, Sanitaryware (47% of revenue) grew 1.4% YoY, Tiles (11% of revenue) grew 3.1% YoY, and Wellness (2% of revenue) grew 3.2% YoY. Faucetware (40% of revenue) declined 3.5% YoY due to a high base effect from previous price increases.

Geographic Revenue Split

The company maintains a diversified domestic presence across South, East, North, and West India, providing adequate geographical diversity to mitigate regional demand fluctuations.

Profitability Margins

Gross margins are stable between 52% and 55%. Net profit margin for FY25 was 12.5%, a slight improvement from 12.4% in FY24, despite market challenges.

EBITDA Margin

EBITDA margin was 17.9% in FY25 compared to 18.4% in FY24, a decline of 50 bps attributed to increased sales discounts and competitive intensity in the retail segment.

Capital Expenditure

Planned capex for FY26 is INR 23 Cr for routine maintenance and retail footprint expansion. A major greenfield expansion for sanitaryware, revised to INR 150 Cr from INR 130 Cr, has been deferred pending market demand revival.

Credit Rating & Borrowing

Long-term bank facilities of INR 56 Cr are rated CARE AA; Stable. Short-term facilities of INR 44 Cr are rated CARE A1+. Interest coverage ratio remains robust at 44.23x as of FY25.

⚙️ Operational Drivers

Raw Materials

Natural gas is a primary utility cost, representing 3.6% of total revenue. Other inputs include materials for sanitaryware and faucetware manufacturing, though specific chemical/metal % splits are not disclosed.

Import Sources

Gas is sourced domestically from Gujarat (Sabarmati) and through national pipelines (GAIL).

Key Suppliers

Key energy suppliers include GAIL (providing 80% of gas consumption) and Sabarmati Gas (providing 20% of gas consumption).

Capacity Expansion

Current manufacturing is a mix of in-house production and outsourcing. The proposed greenfield expansion to increase sanitaryware capacity is currently on hold with a 18-24 month gestation period once resumed.

Raw Material Costs

Raw material costs are managed through a balanced sourcing strategy. Gas costs stood at 3.6% of revenue in Q2 FY26, reflecting operational efficiency in energy procurement.

Manufacturing Efficiency

Efficiency is supported by a mix of manufacturing and outsourcing. The rollout of a 'Dealer Management System' (DMS) aims to improve supply chain agility and execution.

Logistics & Distribution

The company operates a vast distribution network across India. Trade receivables turnover was 9.58x in FY25, with a debtor cycle of 38 days.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth is targeted through premiumization of the product portfolio, expanding the retail footprint, and leveraging the B2B/Project segment (39% of Q2 FY26 revenue) to offset retail softness. The company is also implementing a Dealer Management System (DMS) to enhance market readiness.

Products & Services

Sanitaryware (washbasins, water closets), Faucetware (taps, showers), Tiles, and Wellness products (bathtubs, partitions).

Brand Portfolio

CERA

New Products/Services

Continuous addition of new Stock Keeping Units (SKUs) and a focus on value-added products manufactured exclusively in-house to drive premiumization.

Market Expansion

Expansion of retail footprint and strengthening brand presence in metro markets where luxury and premium segments are growing.

Market Share & Ranking

Cera maintains a leading position in the domestic sanitaryware industry, particularly strong in the retail and mass-premium segments.

Strategic Alliances

Joint Ventures include Packcart Packaging LLP and Race Polymer Arts LLP, with Cera holding a 51% majority stake in each.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward luxury and premium segments in metros. While the mass-premium segment is stagnant, Cera is positioning itself to capture the eventual upward turn in the demand cycle.

Competitive Landscape

Intense competition from both organized players and fragmented unorganized segments in the mass-premium market.

Competitive Moat

Sustainable moat through a 40-year brand legacy ('CERA'), a robust distribution network, and a debt-free balance sheet with INR 736 Cr in cash surplus.

Macro Economic Sensitivity

Highly sensitive to real estate construction cycles and urban discretionary spending. Sluggishness in the residential market has led to stagnated revenue between INR 1,800 Cr and INR 1,900 Cr.

Consumer Behavior

Shift toward premiumization and 'wellness' products at home, though current retail demand remains soft due to macro-economic factors.

Geopolitical Risks

Potential impact on raw material supply chains, though domestic sourcing of gas (GAIL/Sabarmati) provides some insulation.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with POSH Act (Internal Complaint Committee sessions held in Dec 2024 and March 2025) and SEBI Listing Obligations.

Environmental Compliance

The company has implemented a Business Responsibility and Sustainability Report (BRSR) and focuses on environment, health, and safety (EHS) standards.

Taxation Policy Impact

Not specifically disclosed, but the company adheres to Indian Accounting Standards (Ind AS 34).

Legal Contingencies

No pending applications under the Insolvency and Bankruptcy Code (IBC) 2016. No material regulatory or court orders passed against the company in FY25.

⚠️ Risk Analysis

Key Uncertainties

Prolonged sluggishness in retail demand and real estate projects could lead to further revenue stagnation (currently in the INR 1,800-1,900 Cr range).