Cera Sanitaryware Q2 FY27 results: net profit down 0.9% to ₹56.14 crore, revenue up 23.6%

How did Cera Sanitaryware perform in Q2 FY27?

Cera Sanitaryware reported standalone revenue of ₹602.96 crore for Q2 FY27, up 23.6% from ₹487.91 crore in Q2 FY26 and up 24.1% from ₹485.98 crore in Q1 FY27. Total income was ₹613.85 crore, up 21.7% from ₹504.48 crore a year earlier and up 21.0% from ₹507.27 crore in the previous quarter.

EBITDA for the quarter was ₹73.27 crore, up 9.1% from ₹67.14 crore a year earlier and up 48.9% from ₹49.22 crore in Q1 FY27. The EBITDA margin was 12.2%, down 1.6 percentage points from 13.8% in Q2 FY26 but up 2.1 percentage points from 10.1% in Q1 FY27. Profit before tax was ₹73.02 crore, up 1.1% from ₹72.23 crore a year earlier and up 22.1% from ₹59.81 crore.

Net profit for the quarter was ₹56.14 crore, down 0.9% from ₹56.65 crore in Q2 FY26 and up 23.9% from ₹45.31 crore in Q1 FY27. Basic EPS was ₹43.52, against ₹43.92 a year earlier and ₹35.13 in the previous quarter. The PAT margin was 9.3%, down 2.3 percentage points from 11.6% in the year-ago quarter, with the previous quarter also at 9.3%. These are standalone figures; no consolidated figures were given.

What changed in Cera Sanitaryware's costs and profit?

Total expenses rose 25.1% to ₹540.83 crore from ₹432.24 crore in the year-ago quarter, outpacing the rise in revenue, and they were up 20.9% from ₹447.46 crore in Q1 FY27. Cost of materials consumed was the largest increase, up 64.7% to ₹105.10 crore from ₹63.82 crore, and up 26.6% from ₹83.05 crore in the previous quarter. Employee cost rose 10.7% to ₹72.20 crore from ₹65.23 crore but fell 7.9% from ₹78.37 crore in Q1 FY27.

Other expenses were ₹119.54 crore, up 3.8% from ₹115.21 crore a year earlier and up 25.6% from ₹95.19 crore in the previous quarter. Finance costs fell 15.9% to ₹1.38 crore from ₹1.64 crore, while depreciation edged down 0.6% to ₹9.77 crore from ₹9.83 crore. There was no exceptional item in the quarter.

Other income fell 34.2% to ₹10.89 crore from ₹16.56 crore in Q2 FY26 and 48.8% from ₹21.29 crore in Q1 FY27. Tax expense rose 8.3% to ₹16.88 crore from ₹15.59 crore a year earlier and 16.4% from ₹14.50 crore in the previous quarter. The company said the EBITDA margin was impacted by elevated input costs and certain transitional factors, and the presentation noted brass and gas costs rose approximately 58% and 42% year on year.

How did the first half of FY27 go?

For the first half of FY27, revenue was ₹1,088.94 crore, up 20.0% from ₹907.33 crore in H1 FY26, while total income was ₹1,121.12 crore, up 19.0% from ₹942.49 crore. The half-year EBITDA margin was 11.3%, against 13.7% in the year-ago period.

Profit before tax for the first half was ₹132.83 crore, down 0.4% from ₹133.37 crore in H1 FY26, and PAT was ₹101.45 crore, down 1.7% from ₹103.18 crore. EPS for the half was ₹78.66, against ₹80.00 a year earlier. The filing noted that turnover discounts are now presented as a deduction from revenue from operations in accordance with Ind AS, with prior-period revenues restated for comparability, and that the change has no impact on absolute profitability or cash flows.

What do the balance sheet and cash flow show?

As at 30 September 2026, total assets were ₹2,004.33 crore against ₹1,958.2 crore at 31 March 2026. Total equity was ₹1,469.85 crore, against ₹1,472.34 crore. Borrowings were ₹0.88 crore compared with ₹0.87 crore, and cash was ₹21.28 crore against ₹12.85 crore. Inventories rose to ₹423.61 crore from ₹395.77 crore, while trade receivables fell to ₹226.61 crore from ₹273.87 crore and trade payables rose to ₹262.11 crore from ₹219.94 crore.

Operating cash flow for H1 FY27 was ₹142.76 crore, against ₹75.98 crore in H1 FY26. Investing cash flow was negative ₹25.54 crore compared with ₹32.24 crore a year earlier, and financing cash flow was negative ₹106.51 crore against negative ₹96.2 crore. Capital expenditure was ₹26.72 crore, against ₹10.02 crore in the year-ago period.

How has Cera Sanitaryware done over the last 8 quarters?

Revenue has risen year on year in each of the last four quarters. Over the eight quarters to Q2 FY27, revenue was lowest at ₹419.42 crore in Q1 FY26 and highest at ₹643.82 crore in Q4 FY26, before reaching ₹602.96 crore in Q2 FY27. The direction now is upward from ₹485.98 crore in the previous quarter.

Profit has been uneven. PAT peaked at ₹85.58 crore in Q4 FY25 and bottomed at ₹23.67 crore in Q3 FY26, and stood at ₹56.14 crore in Q2 FY27 against ₹45.31 crore in Q1 FY27. The EBITDA margin peaked at 18.3% in Q4 FY25 and bottomed at 10.1% in Q1 FY27, recovering to 12.2% in Q2 FY27 from 13.8% a year earlier.

What else did the company announce?

The board approved the unaudited financial results for the quarter and half year ended 30 September 2026, which had been reviewed by the audit committee, and the statutory auditors issued an unmodified limited review report. The board proposed the re-appointment of Mr Vikram Somany as Chairman and Managing Director for five years with effect from 1 July 2027, and of Mr Anandh Sundar as Independent Director for a second term of five years with effect from 12 February 2027, both subject to shareholder approval. A postal ballot notice with special resolutions for remote e-voting was approved, with details to be intimated separately. The same-day filings did not announce a dividend or a fund raise.

The Nomination and Remuneration Committee approved the grant of 13,650 stock options to eligible employees on 4 November 2026 under the Cera Sanitaryware Employee Stock Option Scheme 2024. The options cover 13,650 equity shares of face value ₹5 each, with the exercise price at the face value of the shares, a minimum vesting period of one year and a maximum exercise period of five years for vested options.

What did Cera Sanitaryware's management say?

Management maintained FY27 revenue growth guidance of 18%–20% and said it expects to surpass the target. It kept the full-year EBITDA margin outlook at 13%–14% and expects profitability to improve progressively during H2 FY27, supported by the cumulative benefits of pricing actions and cost-efficiency initiatives. Faucetware capacity expansion was described as on track during FY27, and the FY27 brand investment budget was put at ₹80 crore+.

Mr Vikram Somany, Chairman and Managing Director, said growth was broad-based and volume-led, with sanitaryware and faucetware registering growth of 24% and 38% respectively. He said retail demand continued to recover and was complemented by steady performance in the projects business. He noted that the industry continues to navigate a challenging cost environment, particularly with elevated brass and gas prices, and that the company has undertaken calibrated price revisions, including a faucetware price revision in September, alongside pricing discipline in the projects business.

Management said the benefits of pricing and cost-efficiency measures will materialise progressively, and that operating margins already improved against the preceding quarter. It also said distribution-network strengthening, deeper presence in focus markets and selective in-house production of key products are beginning to yield tangible results. The presentation flagged that gross margin fell to 44.0% in Q2 FY27 from 49.2% a year earlier, and that the unchanged 13%–14% EBITDA-margin outlook requires progressive improvement in H2 FY27.

How did Cera Sanitaryware shares react?

The stock was up 0.4% within five minutes of the filing appearing, 0.8% after 15 minutes and 0.8% after 30 minutes, with the pre-results close at ₹4,694.9. On the reaction day it closed 2.3% above that close, and by the next day's close it was up 2.7% from the same pre-results close. No five-day move was recorded.

The Consumer Durables industry median rose 1.0% on the reaction day and 2.4% by the next day's close, leaving Cera ahead by 1.2 percentage points on the reaction day and 0.3 percentage points by the next session's close. The Nifty Microcap 250 rose 2.2% on the reaction day. Past results-day moves have been mixed, including a fall of 4.2% on 7 August 2026 and gains of 6.7% on 8 May 2026 and 9 May 2025.