Cera Sanitaryware Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Cera Sanitaryware Ltd filed with BSE on 12 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Cera Sanitaryware reported Q1 FY27 revenue of Rs 486 crore, up 19.5% year-on-year, with growth driven mainly by volumes across both Sanitaryware and Faucetware segments. EBITDA margin declined to 10.1% from 13.1% a year earlier, which management attributed to one-time and transitional factors including a wage settlement provision, lower fixed-cost absorption from a single-kiln operation, and delayed pricing effects on project orders. Management reiterated its full-year revenue growth guidance of 18% to 20% and EBITDA margin guidance of 13.5% to 14% for FY27.
Numbers mentioned
Revenue from operations: INR 486 crore (Q1 FY27)
p. 4
“Revenue from operations for the quarter stood at INR 486 crore as compared to INR 407 crore in Q1 FY25.”
Vikas Kothari, page 4 of the filed PDF · View the filing
EBITDA excluding other income: INR 49.2 crore (Q1 FY27)
p. 4
“EBITDA excluding other income for the quarter stood at INR 49.2 crore as compared to INR 53.1 crore in the corresponding quarter of the previous year.”
Vikas Kothari, page 4 of the filed PDF · View the filing
EBITDA margin: 10.1% (Q1 FY27)
p. 4
“EBITDA margins stood at 10.1% in Q1 FY27 as compared to 13.1 in Q1 FY26.”
Vikas Kothari, page 4 of the filed PDF · View the filing
Profit after tax: INR 45 crore (Q1 FY27)
p. 5
“Profit after tax stood at INR 45 crore as compared to INR 47 crore in the corresponding quarter of the previous year.”
Vikas Kothari, page 5 of the filed PDF · View the filing
Earnings per share: INR 35.15 (Q1 FY27)
p. 5
“Earnings per share for the quarter stood at INR 35.15 as compared to INR 36.08 in Q1 FY26.”
Vikas Kothari, page 5 of the filed PDF · View the filing
Gas cost: INR 48.43 per cubic meter (Q1 FY27)
p. 5
“Gas cost during the quarter remained elevated, with the weighted average cost at INR 48.43 per cubic meter in Q1 FY27 as compared to INR 33.17 per cubic meter in Q1 FY26.”
Vikas Kothari, page 5 of the filed PDF · View the filing
Cash and Cash Equivalents: INR 943 crore (as of June 30, 2026)
p. 5
“As of June 30, 2026, our Cash and Cash Equivalents stood at INR 943 crore.”
Vikas Kothari, page 5 of the filed PDF · View the filing
Net working capital cycle: 50 days (Q1 FY27)
p. 5
“Consequently, our net working capital cycle improved from 75 days to 50 days on a Y-o-Y basis.”
Vikas Kothari, page 5 of the filed PDF · View the filing
Sanitaryware capacity utilization: 61% (Q1 FY27)
p. 5
“Capacity utilization during the quarter stood at 61% for sanitaryware and 96% for Faucetware.”
Vikas Kothari, page 5 of the filed PDF · View the filing
Cumulative price increase in Sanitaryware: approximately 12%
p. 3
“Following the pricing revisions undertaken during March and May 2026, cumulative price increases now stand at approximately 12% in Sanitaryware and 16% in Faucetware.”
Deepak Chaudhary, page 3 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — 18% to 20% · FY27
stated firmly by Deepak Chaudhary
p. 4
“we remain confident of sustaining our growth momentum and maintaining our FY27 revenue growth guidance of 18% to 20%.”
Deepak Chaudhary, page 4 of the filed PDF · View the filing
EBITDA margin — 13.5% to 14% · FY27
stated firmly by Deepak Chaudhary
p. 7
“we remain with the guidance that we have given, 13.5% to 14%.”
Deepak Chaudhary, page 7 of the filed PDF · View the filing
Capital expenditure — approximately INR 43 crore · FY27
stated firmly by Vikas Kothari
p. 6
“For FY27, we have planned a capital expenditure outlay of approximately INR 43 crore.”
Vikas Kothari, page 6 of the filed PDF · View the filing
Brand-building and marketing spend — approximately INR 85 crore · FY27
stated firmly by Deepak Chaudhary
p. 4
“During FY27, we plan to invest approximately INR 85 crore towards brand-building and marketing initiatives.”
Deepak Chaudhary, page 4 of the filed PDF · View the filing
Senator flagship stores — 50 stores · by end of current financial year
stated firmly by Deepak Chaudhary
p. 9
“we have given a guidance that we will be going up from 35 to something like 50 stores by the end of the current year.”
Deepak Chaudhary, page 9 of the filed PDF · View the filing
Gross margin — 51% · Q3 FY27
stated conditionally by Deepak Chaudhary
p. 14
“From Q3, if the brass prices continue to hold at the current levels and the gas prices also continue to hold at the current levels, we should be back at the levels of 51%, which we typically used to have.”
Deepak Chaudhary, page 14 of the filed PDF · View the filing
Faucetware price increase
stated conditionally by Deepak Chaudhary
p. 14
“If it keeps on rising beyond the current range, let's say it goes up to INR 950, INR 1,000 kind of a number, then we may have to again think of a further price rise.”
Deepak Chaudhary, page 14 of the filed PDF · View the filing
Greenfield sanitaryware expansion — by end of this year
stated conditionally by Vikas Kothari
p. 12
“by the end of this year, if we expect that the demand will continue in a similar fashion, accordingly we will take the necessary decision.”
Vikas Kothari, page 12 of the filed PDF · View the filing
Advertising and promotion spend
stated conditionally by Deepak Chaudhary
p. 15
“If we feel that we need to increase the budget, that can always be done as we go forward.”
Deepak Chaudhary, page 15 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Sanitaryware's 14% growth was largely volume-driven at 10% with 2% from price and 2% from mix; Faucetware's 25% growth was 18% volume, 4% price and 3% mix.
Answered by Vikas Kothari
Asked by Praveen Sahay: What was the volume growth breakdown for Sanitaryware and Faucetware given the price hikes taken?
p. 6
“in case of Sanitaryware, we saw 14% growth, which was largely driven by volume, with volume contributing around 10%, and price contributing around 2%.”
Vikas Kothari, page 6 of the filed PDF · View the filing
Management said the absolute EBITDA is unaffected, and the percentage margin guidance of 13.5-14% remains intact, only the base changes slightly.
Answered by Deepak Chaudhary
Asked by Praveen Sahay: Does the accounting change to revenue presentation affect the EBITDA margin guidance?
p. 7
“Assuming that the reduction would be in the range of 2.5% to 3%. Earlier, if you were talking about 13.5% to 14% on INR 100, now you will be talking about 13.5% to 14% on INR 97.”
Deepak Chaudhary, page 7 of the filed PDF · View the filing
Management explained the four-year wage settlement cycle for workers and quantified the retrospective and current period impact.
Answered by Deepak Chaudhary
Asked by Varun Julasaria: How much was the one-time wage settlement provision and what is its nature?
p. 8
“INR 6.3 crore was the effect which has come in for the previous period because the last wage agreement had ended in the month of September '25.”
Deepak Chaudhary, page 8 of the filed PDF · View the filing
Management said they began internalizing higher-selling SKUs as a precaution against Morbi supply disruptions, though current availability is comfortable.
Answered by Deepak Chaudhary
Asked by Shubhi Gupta: What is the progress on internalizing SKUs previously outsourced from Morbi?
p. 8
“we had already started the process of internalizing some of the higher selling SKUs from these outsourcing partners to make them internally within our manufacturing plant.”
Deepak Chaudhary, page 8 of the filed PDF · View the filing
Management said the existing national head has been identified under the succession plan and does not expect the transition to impact execution.
Answered by Vikas Kothari
Asked by Ritesh Shah: Who will take over responsibilities for Senator and Polipluz after Mr. Baliga's exit?
p. 9
“We have now identified our existing national head under the succession plan to lead these businesses going forward.”
Vikas Kothari, page 9 of the filed PDF · View the filing
Management attributed the margin drop to one-time factors totaling 4.35 percentage points, including wage settlement, kiln under-absorption, project order closures, and delayed price pass-through.
Answered by Deepak Chaudhary
Asked by Rahul Majethia: What caused the margin dilution despite strong revenue growth, and how much is pricing power versus cost inflation?
p. 11
“If I add all of them, I will find that it is resulting in a kind of one-time impact of 4.35%.”
Deepak Chaudhary, page 11 of the filed PDF · View the filing
Management said they will review the greenfield expansion decision by year-end depending on whether demand momentum continues.
Answered by Vikas Kothari
Asked by Rahul Majithia: Does the strong Q1 volume performance trigger a revival of the deferred greenfield sanitaryware expansion?
p. 12
“We will review the greenfield expansion also. So by the end of this year, if we expect that the demand will continue in a similar fashion, accordingly we will take the necessary decision.”
Vikas Kothari, page 12 of the filed PDF · View the filing
Management said this is difficult to project and will provide better guidance at year-end based on demand and competitive intensity.
Answered by Deepak Chaudhary
Asked by Anu Parakh: When can the company return to its historical average EBITDA margin of 16%?
p. 13
“That is difficult to say because we can go on a year-on-year basis only.”
Deepak Chaudhary, page 13 of the filed PDF · View the filing
Management said the current quarter's 46% gross margin was an aberration and expects improvement from Q3 if input prices hold, while continuing to evaluate further price hikes.
Answered by Deepak Chaudhary
Asked by Varun Julasaria: Given rising brass costs, will gross margins expand and is another price hike likely?
p. 14
“Again, the current quarter, 46%, as I mentioned, was an aberration.”
Deepak Chaudhary, page 14 of the filed PDF · View the filing
Risks flagged
Elevated input cost pressures, particularly rising brass and gas prices
p. 5
“Input costs, particularly brass, continued to remain elevated during the quarter.”
Vikas Kothari, page 5 of the filed PDF · View the filing
Gas supply uncertainty leading to reduced production and fixed cost under-absorption
p. 5
“Lower absorption of fixed costs due to reduced production amid temporary gas supply uncertainty.”
Deepak Chaudhary, page 5 of the filed PDF · View the filing
Dependence on Morbi cluster for outsourced SKUs amid disruptions
p. 4
“For the last few weeks and months, we have progressively reduced our dependence on the Morbi cluster by internalizing several key SKUs.”
Deepak Chaudhary, page 4 of the filed PDF · View the filing
Delayed pass-through of price increases to project business due to pre-booked order structure
p. 5
“the project business remained relatively insulated due to the nature of pre-booked orders.”
Deepak Chaudhary, page 5 of the filed PDF · View the filing
Continued rise in brass prices potentially requiring further price hikes
p. 13
“The brass prices are continuing to go up. Currently, we have reached, you can say, a range of INR 900.”
Deepak Chaudhary, page 13 of the filed PDF · View the filing
Recent resignation of key management personnel overseeing Senator and Polipluz initiatives
p. 9
“Regarding the recent resignation of Mr. Baliga, just to update you, he is leaving due to personal reasons.”
Vikas Kothari, page 9 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.