Cera Sanitaryware Limited has announced its financial results for the second quarter of FY27, reporting a 27.4% year-on-year growth in revenue from operations, reaching INR 603 crore. The company also provided insights into its revenue mix, geographical expansion, and addressed input cost pressures and pricing strategies. Management expressed confidence in achieving its full-year EBITDA margin outlook.
Strong Revenue Growth in Q2 FY27
Cera Sanitaryware Limited reported a significant financial performance for the second quarter ended September 30, 2026. Revenue from operations stood at INR 603 crore, marking a healthy 27.4% year-on-year growth compared to INR 473 crore in Q2 FY26. For the first half of FY27, revenue from operations reached INR 1,089 crore, reflecting a 23.7% growth over the corresponding period in the previous year.
EBITDA and Margins
EBITDA, excluding other income, for the quarter was INR 73 crore, against INR 67 crore in the corresponding quarter of the previous year. The EBITDA margins stood at 12.2% in Q2 FY27, compared to 14.2% in Q2 FY26 and 10.1% in Q1 FY27. The company noted sequential improvement in operating margins, supported by pricing actions and operational efficiencies, despite input cost pressures in brass and gas.
Revenue Mix and Channel Performance
In terms of revenue mix for Q2 FY27, sanitaryware accounted for 45% of revenues, faucetware for 43%, tiles for 10%, and wellness for 2%. On a year-on-year basis, sanitaryware revenues grew by 24% and faucetware by 38%. The projects business accounted for 39% of revenues, while the retail business contributed 61% in Q2 FY27. Management anticipates the project-to-retail revenue mix to stabilize around 40:60 going forward.
Cost Management and Pricing Strategies
The company highlighted the impact of elevated input costs, particularly brass and gas. Calibrated price revisions were implemented, including an approximate 8% increase in the faucetware segment effective September 1, 2026, to offset higher brass prices. The benefits of these revisions are expected to materialize from the latter part of Q3 FY27. Cera is also focusing on cost optimization and process improvements to enhance operating efficiencies and margins.
Capacity Utilization and Capex
Capacity utilization for sanitaryware facilities improved to 82%. In faucetware, monthly production increased from 4 lakh units to 5 lakh units by adding balancing equipment. Regarding capital expenditure, Cera incurred INR 27 crore in the first half of FY27 against a planned full-year outlay of approximately INR 43 crore. The company is reviewing a greenfield sanitaryware project and expects to make a decision by the end of Q4 FY27.
Outlook and Confidence
Cera Sanitaryware expressed confidence in sustaining its growth momentum, supported by improving demand and deeper market penetration. Management expects operating profitability to improve progressively in the second half of FY27, driven by sustained demand, healthy volumes, and the benefits of pricing and cost efficiency initiatives. The company is confident of surpassing its topline growth target and achieving its full-year EBITDA margin outlook of 13%-14%.
Source: BSE
