CERANSEQ4 FY202614 May 2026

Cera Sanitaryware Limited

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1executives

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Management on call

Vikas Kothari

CFO; and Mr. Deepak Chaudhary – VP Finance and Investor Relations of

Key numbers — 40 extracted

11.4%

e quarter, the Company delivered an improved performance with revenues growing in double digits at 11.4% on a year-on-year basis. Sanitaryware and faucetware accounted for 46% and 43% of the revenues, re

46%

owing in double digits at 11.4% on a year-on-year basis. Sanitaryware and faucetware accounted for 46% and 43% of the revenues, respectively, during the quarter. This performance further builds on th

43%

double digits at 11.4% on a year-on-year basis. Sanitaryware and faucetware accounted for 46% and 43% of the revenues, respectively, during the quarter. This performance further builds on the early

INR 49 crore

visibility across segments. During FY26, our marketing and publicity spends stood approximately at INR 49 crore, and we expect this to increase in FY27 as we step up our brand-building initiatives across key c

4.3 lakh

ng traction with operations running at high utilization levels. During March 2026, we manufactured 4.3 lakh pieces, reflecting a healthy demand momentum. In view of the strong demand visibility, we are und

5 lakh

ng 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. The enhanced capacity is

INR 5 crore

ease the production capacity to 5 lakh pieces per month with minimal capex outlay of approximately INR 5 crore. The enhanced capacity is expected to become operational from Q4 FY27 onwards. To summarize, whi

INR 644 crore

for the quarter and year ended 31st March '26. Revenue from operations for the quarter stood at INR 644 crore as compared to INR 578 crore in Q4 FY25. EBITDA excluding other income for the quarter was at IN

INR 578 crore

ded 31st March '26. Revenue from operations for the quarter stood at INR 644 crore as compared to INR 578 crore in Q4 FY25. EBITDA excluding other income for the quarter was at INR 98 crore as compared to INR

INR 98 crore

re as compared to INR 578 crore in Q4 FY25. 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. EBITDA margins sto

INR 106 crore

ore in Q4 FY25. 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. EBITDA margins stood at 15.2% in Q4 FY26 as com

15.2%

pared to INR 106 crore in the corresponding quarter of the previous year. EBITDA margins stood at 15.2% in Q4 FY26 as compared to 18.3% in Q4 FY25. This decline was primarily driven by continued pressur

Guidance — 20 items

Deepak Chaudhary

opening

“Going forward, we expect continued volatility in the key input prices, including metals and energy costs, over the near to medium term.”

Deepak Chaudhary

opening

“As operating conditions stabilize, we expect to progressively regain better control over discounts, which should support a steady improvement in margins over time.”

Deepak Chaudhary

opening

“From a portfolio perspective, FY26 has been an important year in strengthening our overall brand architecture, particularly through our initiatives under Senator and Polipluz.”

Deepak Chaudhary

opening

“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

opening

“Given the nature of this phase, we expect the outcomes to play out progressively over time with a more visible contribution to growth as these initiatives scale up.”

Deepak Chaudhary

opening

“As mentioned earlier, we are seeing improved traction in this segment supported by gradual recovery in retail demand as well as continued momentum in the project business.”

Deepak Chaudhary

opening

“Given our strong positioning across our core segments, we expect a significant part of the growth going forward to be driven by the core Cera brand, where we have established scale, distribution reach, and strong brand recall.”

Deepak Chaudhary

opening

“During FY26, our marketing and publicity spends stood approximately at INR 49 crore, and we expect this to increase in FY27 as we step up our brand-building initiatives across key channels.”

Deepak Chaudhary

opening

“This will include the introduction of a new brand ambassador, which we expect to announce in the near term and which we believe will further enhance brand visibility and engagement across the key markets.”

Deepak Chaudhary

opening

“Overall, these initiatives are aimed at strengthening our brand positioning and supporting our growth strategy going forward.”

Risks & concerns — 8 flagged

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

This decline was primarily driven by continued pressure on gross margins led by elevated brass input costs and higher trade discounts.

— Vikas Kothari

In this, if I have to categorize by segment, 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

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

So, as far as margin decline is concerned, the two factors which have largely impacted the gross margin are the rise in the input cost, mainly the brass prices which have gone up by 29% which has now been sufficiently taken care of through the price rise to offset the impact of increased cost.

— Vikas Kothari

However, there was some adverse price impact of 3% because of discounts and all that we discussed.

— Vikas Kothari

So, 3 months further, we do not anticipate any challenge.

— Deepak Chaudhary

I just wanted to understand if there is anything you want to call out behind the decline.

— Aasim Bharde

Q&A — 9 exchanges

Many congratulations for the good set of numbers. The first question is related to the demand. So, if I look at that from Q3 to Q4, we can clearly see that the retail has done better in Q4. And also, in the commentary and opening statement, you had said that the retail channel has shown encouraging recovery. So how are you going to see FY27, the retail demand, because the retail has been quite muted for the past few quarters? Now we have started seeing some improvement. So, how are you going to see the growth in retail, the way forward. And second thing is on the institution contribution? Beca

Praveen Sahay

Okay, so that 7% to 8% or 10% to 12% is the volume growth what you are indicating for? Correct. Next question is related to the price, because last quarter also you indicated 4% in the sanitaryware and 11% in the faucetware, but eventually we indicated that from March onwards we started seeing gradual price increase. So, what challenges basically had you faced, especially in taking the price hike, because the brass prices have been quite high for the last couple of quarters? But the price hike has been first announced and now March actually has been taken. And the second related to pricing is

My first question is regarding the revenue growth guidance for FY27. So, earlier you have mentioned that we are expecting sanitaryware volume to grow at 7% to 8% rate and faucetware at 10% to 12% rate for FY27. And given the price hike which we have implemented in the last two-three-month period, is it fair to understand that we are targeting sanitaryware revenue to grow at a healthy teen rate and faucetware revenue to grow at more than a 20% rate for FY27?

Vikas Kothari

Thank you for asking the question. So, as you have seen the last year was stressed in terms of different activities, market conditions, geopolitical and all, within those constrained situations also, we have delivered INR 2,050 crore in terms of the overall revenue. Going forward based on how the market demand is doing, we have seen that quarter 3 and quarter 4 have built the confidence in terms of continuity of the upward trend. So, basis that we have we have estimated in terms of the revenue growth which is going to be there for financial year FY27. So, with the demand trend continuing to gr

For this quarter, how was the growth driven by price hikes and how much was driven by volume for Q4?

Vikas Kothari

So, largely if you see the success in terms of the growth which is there in this quarter is largely driven by volume. 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. So, largely it is a volume-driven growth for the quarter. And in faucetware, how much capacity are we increasing? We planned for 6 million, right? No. So just to give you an update in terms of how faucetware is progressing. So, with the brownfield expansion that we have taken earlier, we

The first question is on inventory, - you mentioned that you have inventory of 1 or 2 quarters. But if you look at our balance sheet, it shows somewhere around 70 days. So, I am assuming that some portion of that could be attributed to raw material costs as well. So, can you tell us, stripping out, what is the finished goods inventory that we have?

Deepak Chaudhary

The finished goods inventory as of March 2026 was INR 303 crore as compared to December, which was INR 365 crore. The December 2025 was INR 365 crore, and we ended March with INR 303 crore. And at the end of April also we are in the same region, INR 300 crore roughly, we are maintaining currently. So that is somewhere around one quarter, right, sir? So, it does not function like that. Because we are also manufacturing. So manufacturing is also continuing right now. So, we have certain inventory, which is of manufacturing, and certain inventory which is for outsourcing materials. So, as I menti

I just wanted to understand if you can throw some light on the strategy for both Senator and Polipluz for the next, let us say, two to three years? How do you want to scale up this business and how premiumization trend will be a key driver for this?

Deepak Chaudhary

See, as we have been mentioning in the earlier calls also that Polipluz will be the primary driver for the entry segment. This will be mostly the kind of brand which will be for the purpose of rural segment and the areas which are more Tier 4 in nature. So, we are already, as I mentioned in my call also earlier also, set up something like 100 distributors right now with 1,000-plus dealers, and we intend to take it up to 200 distributors and 2,000 dealers in the next financial year. For Senator, the idea would be that it will be more of a premium and luxury brand, and that is why the concentrat

Two questions from my side. One on this FY27 revenue growth expectation. So, you said sanitaryware will grow 12%, faucets 18%. Then I cannot understand how your overall revenue growth will be 18% or 20%. So, what explains the balance? Yes, regarding this part, we have given the broad understanding with respect to our major segments, that is sanitary and faucetware. There are other segments also within the pipeline, so we have tiles and CC. So, our understanding is that once this Morbi situation, which has now started opening from May onwards, improves, tiles and construction chemicals, they ar

Aasim Bharde

Okay, understood. And the second bit on numbers. So, quarterly employee cost in Q4 is down Q-o-Q. Any reasons that you can attribute to this? And what should be the quarterly run rate ahead, and the capex number that you estimate for FY27? I did not get your first part. You are talking about the employee cost? Yes, the employee cost. INR 59 crore for Q4, I think is down about 1%-2% Q-o-Q. I just wanted to understand if there is anything you want to call out behind the decline. No, actually what had happened is that typically, if you see our expenditure which has been happening on a quarter-on-

A small question from my side. You have INR 853 crore of cash. So, what is the usage, way forward? Have you decided that?

Vikas Kothari

So I think this is a question which is asked every time. So, the idea is that whatever the cash position on which we are sitting, we are equally respecting it in terms of distributions also. 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. So that is there. 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. So, the right time to start construction of the greenfield will be seen in the coming q

I just wanted to understand what kind of launch expenses we have booked for Senator and Polipluz in the current year and what kind of number we can see for the next two-three years when we want to have an EBITDA of 20-25% on this portfolio?

Deepak Chaudhary

In the current year, the expenses in Senator were mostly focused on opening the brand stores. So, we have spent something like INR 4 crore in the current year because this expansion etc. has started from, let us say, after three months from the start of the year. So, we would spend something like INR 4 crore over here. Transcript of CERA Sanitaryware Ltd. Q4 FY26 Earnings Call In the period going forward, now that store expansion has mostly happened, like we have opened 40 stores in the current period, we intend to go another 20 in the next year to take it to 60. But the now that we have bough

Thank you, everyone, for attending this call and for showing interest in Cera Sanitaryware Limited. Should you need any further clarification or would like to know more about the Company, please feel free to reach out to me or to CDR India. Thank you once again for taking the time to join the call.

Management

Speaking time

Deepak Chaudhary

Moderator

Vikas Kothari

Praveen Sahay

Varun Julasaria

Pranav Mehta

Karan Bhatelia

Bhavin Rupani

Aasim Bharde

Utkarsh Nopany

Opening remarks

Devrishi Singh

Ladies and gentlemen, good day, and welcome to the earnings conference call of Cera Sanitaryware Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Devrishi Singh of CDR India. Thank you, and over to you, Mr. Singh. Good morning, everyone, and thank you for joining us on the earnings conference call for Cera Sanitaryware Limited for Q4 FY26 earnings, which were announced yesterday. We have with us today the management team comprising Mr. Vikas Kothari – CFO; and Mr. Deepak Chaudhary – VP Finance and Investor Relations of Cera Sanitaryware. We will start with brief opening remarks from the management, following which we will open the call for Q&A.

Deepak Chaudhary

Thank you, Devrishi. Good morning, everyone, and a warm welcome to you all for joining us for the Q4 and full year FY26 earnings conference call of Cera Sanitaryware Limited. I will begin by sharing a brief overview of our operational and strategic developments during the quarter, following which our CFO, Mr. Vikas Kothari, will take you through the financial performance in greater detail. During the quarter, the Company delivered an improved performance with revenues growing in double digits at 11.4% on a year-on-year basis. Sanitaryware and faucetware accounted for 46% and 43% of the revenues, respectively, during the quarter. This performance further builds on the early signs of recovery that we had started witnessing from Q3 and reinforces our confidence that demand conditions are gradually improving. Importantly, this improvement is being led by our core product categories, where we are seeing relatively better traction given our strong positioning in the mass and mid-segments. Fr

Vikas Kothari

Thank you, Deepak and a very good morning to everyone. I will now take you through a brief overview of the company's financial performance for the quarter and year ended 31st March '26. Revenue from operations for the quarter stood at INR 644 crore as compared to INR 578 crore in Q4 FY25. 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. EBITDA margins stood at 15.2% in Q4 FY26 as compared to 18.3% in Q4 FY25. This decline was primarily driven by continued pressure on gross margins led by elevated brass input costs and higher trade discounts. Margins were also impacted by pre-operating expenses related to the Senator and Polipluz formats. Gas costs during the quarter remained stable with the weighted average cost at INR 35.55 per cubic meter in Q4 FY26 as compared to INR 36.03 per cubic meter in Q4 FY25. During the quarter, gas consumption was sourced 64% from GAIL and 36% from Sabarmati. Ov

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