Cera Sanitaryware Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Cera Sanitaryware Ltd filed with BSE on 14 May 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 Q4 FY26 revenue of Rs 644 crore, up from Rs 578 crore in Q4 FY25, with EBITDA margin declining to 15.2% from 18.3% a year earlier due to elevated brass input costs and higher trade discounts. Management implemented price increases across sanitaryware and faucetware in March and April to offset input cost inflation, and outlined plans for FY27 including growth targets for the core business and the Senator and Polipluz brands. The company also discussed gas supply disruptions affecting the unorganized sector in Morbi and steps taken to internalize certain product categories.
Numbers mentioned
Revenue: INR 644 crore (Q4 FY26)
p. 5
“Revenue from operations for the quarter stood at INR 644 crore as compared to INR 578 crore in Q4 FY25.”
Vikas Kothari, page 5 of the filed PDF · View the filing
EBITDA: INR 98 crore (Q4 FY26)
p. 5
“EBITDA excluding other income for the quarter was at INR 98 crore as compared to INR 106 crore in the corresponding quarter of the previous year.”
Vikas Kothari, page 5 of the filed PDF · View the filing
EBITDA margin: 15.2% (Q4 FY26)
p. 5
“EBITDA margins stood at 15.2% in Q4 FY26 as compared to 18.3% in Q4 FY25.”
Vikas Kothari, page 5 of the filed PDF · View the filing
Profit after tax: INR 77 crore (Q4 FY26)
p. 5
“Profit after tax stood at INR 77 crore as compared to INR 86 crore in the corresponding quarter of the previous year.”
Vikas Kothari, page 5 of the filed PDF · View the filing
Earnings per share: INR 59.96 (Q4 FY26)
p. 5
“Earnings per share for the quarter stood at INR 59.96 compared to INR 66.36 in Q4 FY25.”
Vikas Kothari, page 5 of the filed PDF · View the filing
Cash and cash equivalents: INR 853 crore (as of 31st March 2026)
p. 6
“As of 31st March '26, our cash and cash equivalents stood at INR 853 crore.”
Vikas Kothari, page 6 of the filed PDF · View the filing
Capital expenditure: INR 14.5 crore (FY26)
p. 6
“On capital expenditure front, the capital expenditure for FY26 remained measured with an outlay of around INR 14.5 crore by end of March '26.”
Vikas Kothari, page 6 of the filed PDF · View the filing
Net working capital days: 64 days (Q4 FY26)
p. 6
“This resulted in a Y-o-Y reduction in net working capital from 78 days to 64 days.”
Vikas Kothari, page 6 of the filed PDF · View the filing
Marketing and publicity spend: INR 49 crore (FY26)
p. 4
“During FY26, our marketing and publicity spends stood approximately at INR 49 crore”
Deepak Chaudhary, page 4 of the filed PDF · View the filing
Faucetware production: 4.3 lakh pieces (March 2026)
p. 4
“During March 2026, we manufactured 4.3 lakh pieces, reflecting a healthy demand momentum.”
Deepak Chaudhary, page 4 of the filed PDF · View the filing
Sanitaryware capacity utilization: 70% (Q4 FY26)
p. 5
“Capacity utilization during the quarter stood at 70% for sanitaryware and 106% for faucetware.”
Vikas Kothari, page 5 of the filed PDF · View the filing
Finished goods inventory: INR 303 crore (March 2026)
p. 11
“The finished goods inventory as of March 2026 was INR 303 crore as compared to December, which was INR 365 crore.”
Deepak Chaudhary, page 11 of the filed PDF · View the filing
Dividend: INR 75 per share (FY26)
p. 14
“So, this time, we have given a healthy dividend, declared a healthy dividend payout, which is now INR 75 per share, almost 1,500% of the face value.”
Vikas Kothari, page 14 of the filed PDF · View the filing
Senator and Polipluz revenue: INR 19 crore (FY26)
p. 8
“Total these combined generated total revenue of INR 19 crore approximately.”
Deepak Chaudhary, page 8 of the filed PDF · View the filing
Losses in Senator and Polipluz: INR 8.5 crore (FY26)
p. 15
“The total losses were in the range of INR 8.5 crore.”
Deepak Chaudhary, page 15 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.
Faucetware capacity — 5 lakh pieces per month · Q4 FY27
stated firmly by Deepak Chaudhary
p. 4
“In view of the strong demand visibility, we are undertaking capacity expansion to increase the production capacity to 5 lakh pieces per month with minimal capex outlay of approximately INR 5 crore.”
Deepak Chaudhary, page 4 of the filed PDF · View the filing
Overall revenue growth — 18% to 20% · FY27
stated conditionally by Vikas Kothari
p. 9
“So, with the demand trend continuing to grow upward, we expect the overall growth of around 18% to 20% next year.”
Vikas Kothari, page 9 of the filed PDF · View the filing
Sanitaryware revenue growth — 12% · FY27
stated conditionally by Vikas Kothari
p. 9
“in sanitaryware segment, we expect 12% growth driven by favourable volume impact of 7% and price impact of 5% to 6% because like, Deepak has explained it is a combination of both project and retail.”
Vikas Kothari, page 9 of the filed PDF · View the filing
Faucetware revenue growth — 18% · FY27
stated conditionally by Vikas Kothari
p. 9
“and similarly in case of faucetware, we expect a growth of 18% which is going to be driven by favourable volume impact of 10% to 12% and price impact of 8%.”
Vikas Kothari, page 9 of the filed PDF · View the filing
EBITDA margin — 14% to 15%
stated conditionally by Vikas Kothari
p. 10
“we see that if this this trend continues, we will be able to sustain the EBITDA margins at around 14% to 15%.”
Vikas Kothari, page 10 of the filed PDF · View the filing
Senator flagship stores — 60 stores · next financial year
stated firmly by Deepak Chaudhary
p. 3
“Under Senator, we have successfully expanded our retail footprint with 40 flagship stores operational during the year and are targeting to scale this up to 60 stores by next financial year.”
Deepak Chaudhary, page 3 of the filed PDF · View the filing
Polipluz distributor and dealer network — 200 distributors and 2,000 dealers · end of FY27
stated firmly by Deepak Chaudhary
p. 3
“Under Polipluz, we have onboarded 102 distributors and 1,120 dealers during FY26, with a target to expand the network to 200 distributors and 2,000 dealers by the end of FY27.”
Deepak Chaudhary, page 3 of the filed PDF · View the filing
Senator and Polipluz combined revenue — INR 70 to INR 80 crore · FY27
stated as an aspiration by Deepak Chaudhary
p. 8
“Total, we expect that these two brands taken together should give us roughly INR 70 to INR 80 crore.”
Deepak Chaudhary, page 8 of the filed PDF · View the filing
Sanitaryware volume growth — 7% to 8% · FY27
stated conditionally by Deepak Chaudhary
p. 7
“and sanitaryware should be in the range of, you can say, 7% to 8% in FY27 also.”
Deepak Chaudhary, page 7 of the filed PDF · View the filing
Faucetware volume growth — 10% to 12% · FY27
stated conditionally by Deepak Chaudhary
p. 7
“Going forward in FY27, we expect that faucetware should continue to grow at 10% to 12% in volumes”
Deepak Chaudhary, page 7 of the filed PDF · View the filing
Retail to project revenue mix — 60% retail, 40% project
stated as an aspiration by Deepak Chaudhary
p. 6
“So, going forward, we expect that the proportion of retail and project should now remain stable at 60% for retail and 40% for the project business.”
Deepak Chaudhary, page 6 of the filed PDF · View the filing
Employee expenses — 10%
stated conditionally by Deepak Chaudhary
p. 13
“Going forward, we expect that the employee expenses should increase in the range of 10% on the basis of normal wage hikes and the incremental salary increases that are normally there.”
Deepak Chaudhary, page 13 of the filed PDF · View the filing
Capital expenditure — INR 43.42 crore · FY27
stated firmly by Deepak Chaudhary
p. 14
“So, total capex taking everything together, the routine, the faucetware expansion of INR 5 crore, and this office space acquisition of something like INR 15 crore, would be in the region of INR 43.42 crore.”
Deepak Chaudhary, page 14 of the filed PDF · View the filing
Tiles and construction chemicals revenue — INR 250 crore · FY27
stated conditionally by Vikas Kothari
p. 13
“our understanding is that once this Morbi situation, which has now started opening from May onwards, improves, tiles and construction chemicals, they are going to contribute around INR 250 crore, a growth of 20-plus percent.”
Vikas Kothari, page 13 of the filed PDF · View the filing
Greenfield sanitaryware plant cost — INR 150 crore
stated conditionally by Vikas Kothari
p. 14
“And considering the two years' inflation, so our understanding is when we are going to construct the first phase, if we conclude in terms of construction this year, then it will cost around INR 150 crore.”
Vikas Kothari, page 14 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.
Management said retail demand has been recovering since Q3 and is expected to sustain through FY27, with the retail-project mix stabilizing at 60:40.
Answered by Deepak Chaudhary
Asked by Praveen Sahay: How will retail and institution demand trend in FY27 given the recovery seen in Q4?
p. 6
“So, going forward, we expect that the proportion of retail and project should now remain stable at 60% for retail and 40% for the project business.”
Deepak Chaudhary, page 6 of the filed PDF · View the filing
Management detailed a series of price increases and surcharges taken in March and April, with a residual gap versus cost increases expected to be closed via discount management.
Answered by Deepak Chaudhary
Asked by Praveen Sahay: What price hikes have been taken and how much more is expected to protect margins?
p. 7
“So, effectively over a period of two months, we have taken a price increase of 12% in the case of sanitaryware and 16% in the case of faucetware.”
Deepak Chaudhary, page 7 of the filed PDF · View the filing
Management gave FY26 revenue figures for both brands and a combined FY27 target.
Answered by Deepak Chaudhary
Asked by Praveen Sahay: How much revenue did Senator and Polipluz generate in FY26 and what is the target for FY27?
p. 8
“Total these combined generated total revenue of INR 19 crore approximately.”
Deepak Chaudhary, page 8 of the filed PDF · View the filing
Management said discount management is a gradual process that has begun improving from Q1 and will strengthen further in coming quarters.
Answered by Vikas Kothari
Asked by Utkarsh Nopany: Why are trade discounts continuing despite demand recovery and gas supply disruption?
p. 9
“discounts are not something that can be immediately controlled, it is a gradual journey.”
Vikas Kothari, page 9 of the filed PDF · View the filing
Management explained one kiln was shut in March and April due to gas supply uncertainty, with utilization expected to improve as a second kiln resumes and internalization progresses.
Answered by Vikas Kothari
Asked by Utkarsh Nopany: What is the capacity utilization status and outlook for the sanitaryware plant, and status of the greenfield plant?
p. 10
“So, I think this capacity which is running at 70%-75% will further improve in the coming months.”
Vikas Kothari, page 10 of the filed PDF · View the filing
Management said growth was largely volume-driven with a partial adverse price impact from discounts.
Answered by Vikas Kothari
Asked by Varun Julasaria: How much of Q4 growth was volume-driven versus price-driven?
p. 10
“So, largely it is driven by volume growth of 12% and with an improved product mix of 3% to 4%. However, there was some adverse price impact of 3% because of discounts and all that we discussed.”
Vikas Kothari, page 10 of the filed PDF · View the filing
Management said tiles would be impacted in Q1 due to dependence on outsourced supply from Morbi.
Answered by Deepak Chaudhary
Asked by Bhavin Rupani: What impact will the Morbi gas disruption have on the tiles business, which is fully outsourced?
p. 12
“Tiles will be impacted, because in the month of March, also later part of March, most of it is dependent upon outsourcing.”
Deepak Chaudhary, page 12 of the filed PDF · View the filing
Management attributed the decline to a write-back of a prior wage code-related provision made in Q3.
Answered by Deepak Chaudhary
Asked by Aasim Bharde: Why did employee costs decline quarter-on-quarter in Q4?
p. 13
“there is an exceptional item of INR 10 crore of write-back, wherein we had put in something like INR 18 crore in Q3 for gratuity and PL liability, wherein we believe, the liability would be only in the region of INR 7.5 to INR 8 crore”
Deepak Chaudhary, page 13 of the filed PDF · View the filing
Management pointed to the dividend already declared and said the greenfield project timing would depend on continued demand traction.
Answered by Vikas Kothari
Asked by Praveen Sahay: What is the plan for use of the large cash balance?
p. 14
“Apart from that, in terms of the greenfield project, which we will evaluate, as we have seen that the traction is coming right now with respect to demand.”
Vikas Kothari, page 14 of the filed PDF · View the filing
Management gave salary and publicity cost breakdowns and total losses for both brands in FY26.
Answered by Deepak Chaudhary
Asked by Karan Bhatelia: What were the losses and expense breakdown for Senator and Polipluz this year?
p. 15
“This year the total losses were in the region of INR 7 crore for Senator and for Polipluz it was in the region of INR 1.5 crore.”
Deepak Chaudhary, page 15 of the filed PDF · View the filing
Risks flagged
Continued volatility in key input costs including brass, metals and energy
p. 3
“Going forward, we expect continued volatility in the key input prices, including metals and energy costs, over the near to medium term.”
Deepak Chaudhary, page 3 of the filed PDF · View the filing
Gas availability disruptions in Morbi due to geopolitical situation affecting unorganized sector supply
p. 4
“the industry has been witnessing disruptions in parts of the unorganized sector, particularly in Morbi, due to gas availability challenges arising from the ongoing geopolitical situation.”
Deepak Chaudhary, page 4 of the filed PDF · View the filing
Elevated gas prices unlikely to ease in near term
p. 4
“While gas prices remain elevated and are unlikely to ease in the near term, Cera has remained relatively insulated from these disruptions.”
Deepak Chaudhary, page 4 of the filed PDF · View the filing
Margin pressure from higher input costs and continued trade discounts
p. 3
“On the margin front, we have continued to see some pressure during the quarter with margins remaining below our normal range, largely on account of higher input costs as well as on account of continued trade discounts.”
Deepak Chaudhary, page 3 of the filed PDF · View the filing
Sourcing from Morbi expected to be constrained in Q1 of the new financial year
p. 11
“we expect that sourcing from Morbi in Q1 of the current financial year would be a little sketchy.”
Deepak Chaudhary, page 11 of the filed PDF · View the filing
Tiles business impact due to reliance on outsourced Morbi supply
p. 12
“if the plants do not open up and we are not able to get that procuring material from outside, the tiles portion, we expect that during Q1 will be impacted.”
Deepak Chaudhary, page 12 of the filed PDF · View the filing
Uncertainty from pending long-term wage settlement negotiations
p. 13
“Also, in the case of labor, there might be some long-term settlement which is now pending, which will impact the only the labor portion, the wage portion, not the salary cost.”
Deepak Chaudhary, page 13 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.