Cera’s Q2 margin rose 2.02 points as revenue outpaced costs
Standalone revenue grew 24.07% QoQ, while a lower tax rate and meaningful other income supported the 23.90% increase in net profit.
Filed 04 Nov 2026, 12:24 IST · Cera Sanitaryware Ltd (CERA)
Key takeaways
- Cera Sanitaryware’s standalone operating margin expanded 2.02 percentage points QoQ to 12.15% as revenue grew faster than expenses.
- Standalone net profit rose 23.90% QoQ to Rs 56.14 cr, helped by a 1.13 percentage-point decline in the tax rate.
- Other income contributed 14.91% of standalone pre-tax profit, making earnings quality an important point in the quarter.
Price around the results
Volume-led growth lifted Q2 revenue
Cera Sanitaryware’s standalone revenue increased 24.07% QoQ, while expenses rose 21.28%, allowing operating profit to grow 48.86%. Management said Q2 growth was broad-based and volume-led, with sanitaryware and faucetware growing 24% and 38%, respectively. The company also said investments in manufacturing capabilities and selective in-house production supported its business.
Lower cost growth widened the operating margin
Because expenses grew slower than revenue, operating margin improved by 2.02 percentage points QoQ to 12.15%. Management said calibrated price revisions, tighter pricing discipline in the projects business and cost-efficiency measures were supporting profitability. It also flagged brass and gas input costs up about 58% and 42% year on year, respectively, keeping the cost environment relevant.
Profit growth was helped by tax and other income
Pre-tax profit rose 22.09% QoQ, while net profit increased 23.90% as the tax rate declined 1.13 percentage points to 23.12%. Other income accounted for 14.91% of pre-tax profit, so the quarter’s earnings were not driven only by operating performance. Operating margin was 12.15%, slightly above the 11.91% median for the 223 Consumer Discretionary peers that had reported.
Management retained its FY27 margin outlook
Management said it expects profitability to improve progressively in the second half of FY27 and maintained its full-year EBITDA margin outlook at 13%-14%. The company also said it remains confident of surpassing its revenue growth target. It described new premium and luxury bathroom propositions, product introductions and manufacturing investments as part of its longer-term initiatives.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹603 cr | ₹486 cr | +24.07% |
| Other income | ₹11 cr | ₹21 cr | -48.85% |
| Expenses | ₹530 cr | ₹437 cr | +21.28% |
| Operating profit | ₹73 cr | ₹49 cr | +48.86% |
| Operating margin (%) | 12.15% | 10.13% | — |
| Interest | ₹1 cr | ₹1 cr | +8.66% |
| Depreciation | ₹10 cr | ₹9 cr | +3.72% |
| Profit before tax | ₹73 cr | ₹60 cr | +22.09% |
| Tax | ₹17 cr | ₹15 cr | +16.41% |
| Net profit | ₹56 cr | ₹45 cr | +23.90% |
| EPS (₹) | ₹43.52 | ₹35.13 | +23.88% |
Operating margin of 12.15% compares with a Consumer Discretionary sector median of 11.91% across 223 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q2 FY27 revenue growth was supported by broad-based, volume-led growth across key business segments.
- Sanitaryware and faucetware grew 24% and 38%, respectively, in Q2 FY27.
Guidance & outlook
- The company expects profitability to improve progressively during the second half of FY27.
- The company maintained its full-year FY27 EBITDA margin outlook at 13%-14%.
- The company remains confident of surpassing its revenue growth target.
Expansion
- The company has invested in manufacturing capabilities and selective in-house production of key products.
New products
- The company highlights new product introductions as part of its innovation and manufacturing capabilities.
New initiatives
- The company has undertaken calibrated price revisions and strengthened pricing discipline in the projects business.
- The company is pursuing cost-efficiency initiatives to improve profitability.
- The company is building differentiated luxury and premium bathroom propositions with dedicated products, retail formats and teams.
Competition
- The company says its initiatives strengthened its competitive position and helped it gain incremental market share.
Problems & risks
- Key input costs for brass and gas increased about 58% and 42% year on year, respectively.
- The industry continues to face a challenging cost environment due to elevated brass and gas prices.
What to watch
- Whether standalone operating margin holds above 12.15% in the next quarter.
- Whether other income remains below or around its 14.91% share of pre-tax profit.
- Whether brass and gas cost pressure persists while management pursues pricing and cost-efficiency measures.