Cera Sanitaryware reported standalone revenue of ₹486 crore for Q1 FY27 — up 19.5% year-on-year — but net profit declined 2.6% to ₹45.31 crore as EBITDA contracted 7.3% to ₹70.5 crore, with margins falling to 10.13% from 13.1% a year earlier, announced August 7, 2026. The margin pressure was driven by elevated input and fuel costs outpacing the cumulative 12% price increases taken in sanitaryware and 16% in faucetware since March 2026. Faucetware was the growth engine, rising 25.3% to account for 40% of revenues, while sanitaryware grew 14.1% contributing 47%. On the positive side, working capital improved sharply — inventory days fell from 80 to 68, receivables from 38 to 30 days — and the company holds ₹943 crore in cash. Cera also launched a new national brand campaign featuring Kriti Sanon during the quarter. Management maintained FY27 guidance of 18–20% revenue growth and 13.5–14% EBITDA margins, signalling confidence that Q1 margin pressure is temporary.
What this means for the trade: Revenue growth without matching profit improvement is a pattern worth watching before extending deeper credit on large sanitaryware orders — but management’s maintained FY27 guidance and strong cash position suggest this is a cost-absorption quarter, not a structural deterioration.
