Company Overview

Cera Sanitaryware Limited reported its annual results for FY 2025-26, showing revenue growth of 7% to ₹2,050 crore while facing margin pressures that resulted in a 17% decline in PAT to ₹204 crore. The company maintained operational resilience through strategic initiatives including GAIL gas allocation during supply constraints and continued brand investments for Senator and Polipluz segments.

Financial Performance

Revenue & Profitability:

  • Revenue from Operations: ₹205,011.98 lakhs (7% growth from ₹191,525.12 lakhs)
  • EBITDA: ₹32,204.46 lakhs (9% decrease from ₹35,322.73 lakhs)
  • Profit After Tax: ₹20,418.56 lakhs (17% decrease from ₹24,648.43 lakhs)
  • EPS: ₹158.31 (down from ₹190.40 previous year)
  • Exceptional Item: ₹(780.68) lakhs relating to past service cost for Gratuity due to new Labour Codes

Capital Management:

  • Dividend Recommended: ₹75 per share (1500%) vs ₹65 per share previous year
  • Net Worth: ₹147,233.85 lakhs (9% increase)
  • Current Ratio: 4.3x, Debt-Equity Ratio: 0.03x
  • Credit Ratings: CARE AA/Stable, CRISIL AA/STABLE

Operational Highlights

Segment Performance:

  • Sanitaryware: 48% of revenue (5.4% growth)
  • Faucetware: 41% of revenue (13.7% growth)
  • Tiles: 10% of revenue
  • Wellness: 1% of revenue

Capacity Expansion:

  • Faucetware capacity increasing from 4 lakh to 5 lakh units monthly through brownfield debottlenecking (Q4 FY27 operational)
  • Greenfield sanitaryware plant: Land acquired for ~₹27 crore, first-phase construction cost ~₹150 crore
  • Sanitaryware utilization: 81%, Faucetware utilization: 97%

Strategic Initiatives:

  • Distribution network: Over 7,000 distributors/dealers, 29,000 retailers, 15 zonal offices
  • Brand development: Senator (luxury), Polipluz (value), CERA Luxe (super-premium achieving ₹40 crore revenue)
  • 1,700 new products developed over three years

Corporate Actions & Transactions

Subsidiary Divestment:

  • Divested entire 51% stake in Packcart Packaging LLP (₹202.14 lakhs) and Race Polymer Arts LLP (₹952.14 lakhs)
  • Total consideration: ₹1,874.62 lakhs with profit recognition of ₹553.50 lakhs

Share Buyback & ESOPs:

  • FY24-25 buyback: 1,08,333 shares (0.84% equity) at ₹12,000 per share
  • ESOP Scheme 2024: 14,950 options granted, 1,406 options exercised during year

ESG & Sustainability Performance

Environmental Metrics:

  • Renewable energy: 64% of electricity requirements (10.325 MW capacity)
  • Zero Liquid Discharge implemented with 75% treated water reuse
  • Energy intensity: 1.89 GJ/lakh revenue (improved from 2.30)
  • Emission intensity: 0.11 tCO2e/lakh revenue (improved from 0.13)
  • Waste recycled/reused: 53.9% of total waste generated

Social & Governance:

  • Human rights training: 86% of employees, 28% of workers
  • Gender diversity: 6% female employees
  • Zero complaints under POSH Act, zero human rights violations
  • CSR expenditure: ₹517.39 lakhs benefiting ~88,722 people
  • MSME sourcing: 57% of input materials

Regulatory Compliance & Audit

Audit Opinions:

  • Statutory auditors (Singhi & Co.): Unqualified opinion on financial statements
  • Secretarial audit (Parikh Dave & Associates): Clean report with no material violations
  • Internal financial controls: Adequate and operating effectively

Key Audit Matters:

1. Allowance for expected credit losses (₹1,538.88 lakhs provision on ₹27,386.93 lakhs receivables)

2. Revenue recognition complexities for discounts, incentives and volume rebates

Regulatory Status:

  • No defaults in loan repayments
  • No material undisputed statutory dues outstanding
  • Disputed tax matters: ₹2,869.70 lakhs in income tax appeals, ₹309.81 lakhs in GST appeals

Outlook & Guidance

  • Expected revenue growth: 18-20% for FY26-27
  • Sanitaryware growth: ~12% (7% volume, 5-6% pricing)
  • Faucetware growth: ~18% (10-12% volume, ~8% pricing)
  • Target to outperform industry growth by 500 basis points
  • EBITDA margins expected to sustain at 13-14% range
  • Capex: ₹43-45 crore planned for FY26-27

Corporate Calendar

  • 28th AGM: July 23, 2026 through VC/OAVM
  • Record Date for Dividend: July 7, 2026
  • Register Closure: July 8-15, 2026

Capital Structure & Ownership

  • Paid-up Capital: ₹644.88 lakhs (1,28,97,541 shares of ₹5 each)
  • Market Capitalization: ₹5,885 crore (March 31, 2026)
  • Promoter holding: 54.41%, FIIs: 14.2%, Retail: 17.3%, Mutual Funds: 14.1%