Cera Sanitaryware Revenue Climbs 27.4% in Q2 FY27 Amid Strong Volume Momentum

Key numbers

Quarterly Revenue	₹603 Cr27.4% YoY Growth
Market Cap	₹6161.5 CrMid-cap
EBITDA Margin	12.2%Vs 10.1% in Q1
RSI	45.16Neutral Zone

Key highlights

• Revenue from operations stood at ₹603 crore, a 27.4% year-on-year increase driven by volume traction
• Faucetware segment led growth with a 38% revenue increase, followed by sanitaryware at 24%
• Brass costs surged 58% YoY to ₹932 per kg, prompting an 8% price hike in the faucetware segment
• Net working capital cycle improved significantly from 77 days to 58 days on a YoY basis
• Management maintained full-year EBITDA margin guidance of 13% to 14% for FY27

A 27.4 Percent Revenue Jump Beats Guidance

Cera Sanitaryware delivered a robust operational performance in Q2 FY27, with standalone revenue from operations reaching ₹603 crore. This represents a 27.4% year-on-year growth, comfortably surpassing the management's previous guidance of 18% to 20%. The growth was predominantly volume-driven, with sanitaryware and faucetware volumes rising by 14.3% and 24%, respectively.

Retail demand showed recovery while the projects business continued its steady contribution, accounting for 39% of the revenue mix. Management noted that the growth momentum remained consistent across the quarter, rather than being concentrated in a single month.

Managing the Surge in Brass and Gas Costs

• Brass prices reached ₹932 per kg in Q2 FY27, a 58% increase from ₹589 per kg a year ago
• Average gas costs rose to ₹47.29 per cubic meter compared to ₹33.79 in the previous year
• An 8% price hike was implemented in faucetware effective September 1, 2026, to offset raw material inflation
• EBITDA margins improved sequentially to 12.2% from 10.1% in Q1 FY27
• Ad-spend was maintained at 3.5% to 4% of revenue to strengthen premium brand positioning

Sequential Margin Recovery and Strategic Outlook

We are now confident of surpassing the revenue growth target along with a full year EBITDA margin outlook of 13% to 14%.

Operational Efficiency and Capex Utilization

The company reported a significant improvement in its working capital cycle, with net working capital days reducing to 58 days from 77 days last year. Inventory days dropped to 69 days, and receivable days stood at 28. Cera spent ₹27 crore on capital expenditure during the first half of the year against a planned annual outlay of ₹43 crore.

Faucetware capacity utilization was enhanced by increasing monthly production to 5 lakh units through the addition of balancing equipment. The company continues to evaluate a potential greenfield project for sanitaryware as current utilization has reached 82%.

What to watch next

• Achievement of the 13% to 14% full-year EBITDA margin target by March 2027
• Final board decision on the sanitaryware greenfield project expected by Q4 FY27
• Stabilization of project-to-retail revenue mix at the targeted 40:60 ratio

“The growth during the quarter was predominantly volume driven, with healthy traction across key product categories including sanitaryware, faucetware, tiles, and construction chemicals.”

“EBITDA margins stood at 12.2% in Q2 FY27 compared with 14.2% in Q2 FY26 and 10.1% in Q1 FY27. While input cost pressures particularly in brass and gas continued during the quarter, we witnessed a sequential improvement in operating margins.”

Cera Sanitaryware · financial snapshot

Share price	₹4777.3
Market capitalisation	₹6,161.52 Cr
Revenue (annual)	₹2,050.12 Cr
Net profit (annual)	₹204.19 Cr
Revenue (latest quarter)	₹602.96 Cr+24.07% vs previous quarter
Net profit (latest quarter)	₹56.14 Cr+23.89% vs previous quarter
P/E (TTM)	30.43×Sector 43.72×
Promoter holding	54.41%0.00% QoQ
FII holding	15.55%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.