Quarterly results for Cera Sanitaryware Ltd
Cera Sanitaryware Limited – Q3 FY26 Results Summary
Announcement Date: 4 February 2026
Financial Performance (Standalone, INR Crores)
- Units converted: All figures from lakhs to crores for consistency (divide by 100).
Revenue and Adjustments
- No Excise Duty/VAT line item in revenue section; reported figures used as-is.
Key Numbers (Q3 FY26 vs Q2 FY26 vs Q3 FY25)
- Revenue from Operations: ₹498.97 Cr (Q3 FY26)
- QoQ: +2.2% (₹487.91 Cr in Q2 FY26)
- YoY: +10.9% (₹449.27 Cr in Q3 FY25)
- Other Income: ₹11.41 Cr (vs ₹16.56 Cr QoQ, ₹12.09 Cr YoY)
- Total Income: ₹510.38 Cr (vs ₹504.48 Cr QoQ, ₹461.36 Cr YoY)
Operating Profit (EBITDA) Calculation
- Operating Profit (EBITDA): ₹140.04 Cr
- Operating Margin: 28.1% (vs 13.8% last Q, 13.2% YoY; see below for context)
Net Profit and Margins
- Net Profit (after exceptional item): ₹23.67 Cr (vs ₹56.65 Cr QoQ, ₹45.86 Cr YoY)
- Net Margin: 4.7% (vs 11.6% QoQ, 10.2% YoY)
- EPS (Basic/Diluted): ₹18.35 (vs ₹43.92 QoQ, ₹35.56 YoY)
Exceptional Items
- ₹18.46 Cr charge (non-cash, regulatory-driven) for increased employee benefit liabilities due to new Labour Codes.
- This is a one-off, non-recurring item.
What’s Different This Quarter
1. Exceptional Item Drives Net Profit Down
- Net profit and margin sharply lower due to the one-time Labour Code charge (₹18.46 Cr).
- Excluding this, underlying profitability is broadly stable.
2. Operating Margin Surge (Accounting Effect)
- Reported operating margin jumps to 28.1% (vs 13.8% QoQ, 13.2% YoY).
- This is artificially inflated because the exceptional item (employee benefit charge) is below EBITDA line, not in operating expenses.
- Underlying margin (excluding this accounting effect) is in line with historical range.
3. Growth Momentum
- Revenue growth remains solid:
- QoQ: +2.2% (in line with recent trend, slightly above 4Q avg of +2.0%)
- YoY: +10.9% (well above 8Q avg of +6.4%)
- This is the strongest Q3 revenue in available history (previous Q3 high: ₹449.3 Cr in Q3 FY25).
4. Cost Structure
- COGS and employee cost ratios broadly stable vs historical averages.
- No evidence of cost inflation or margin pressure outside the exceptional item.
5. Corporate Activity
- Divestment of subsidiaries completed in Q2 FY26; company now operates as a pure-play standalone entity.
- No further subsidiaries or associates; only standalone results will be reported going forward.
Historical Context
- Seasonality: Q3 revenue of ₹498.97 Cr is a new Q3 high, well above the Q3 average of ₹434.3 Cr.
- Growth: YoY revenue growth (+10.9%) is notably above the 8Q average (+6.4%), confirming continued acceleration.
- Margins: Reported operating margin (28.1%) is not comparable due to the exceptional item; underlying margin is within the historical 13–16% range.
- Net Margin: At 4.7%, net margin is at a multi-year low, but this is entirely due to the one-off Labour Code charge.
- EPS: EPS of ₹18.35 is down sharply QoQ and YoY, again due to the exceptional item.
Company Updates
- Management Commentary: No forward guidance or strategic commentary provided. Company notes the exceptional item is regulatory-driven and non-recurring.
- Corporate Actions:
- Divestment of Packcart Packaging LLP and Race Polymer Arts LLP completed; company now has no subsidiaries or associates.
- No new capex, acquisitions, or major projects disclosed.
Summary:
Cera Sanitaryware delivered record Q3 revenue with continued growth momentum and stable underlying margins. However, reported net profit and EPS are sharply lower due to a one-time, non-cash charge for new Labour Codes. The company has completed its transition to a standalone entity following the divestment of subsidiaries. No other material changes or forward-looking statements were disclosed.