Cera Sanitaryware Ltd. share price target

Revenue beats estimates by ~7%, while cost inflation led to EBITDA and APAT miss by ~18% and ~25% in Q3FY26

We maintain our BUY rating on the stock.

Cera Sanitaryware Ltd.'s (Cera) Q3FY26 performance was below our estimates on margins front. EBITDA was lower impacted by higher trade discounts driven by increased project participation, elevated brass input costs, higher publicity spends, and pre-operative expenses for new brands. The Management expects EBITDA margins to recover to 1314% in Q4 FY26 as one-off costs normalize, with a medium-term target of 1517% margins achievable by H2 FY27, assuming stable input costs. Recently announced price hikes of ~11% in faucetware and ~4% in sanitaryware are expected to fully offset current input cost inflation,...

Cera Sanitaryware (CRS) missed our earnings estimates in 3QFY26 despite clocking a healthy uptick in revenue (up 11% YoY). Revenue growth was driven by 18.1% YoY growth in faucetware (40% revenue mix) and 6.4% YoY growth in sanitaryware (48% revenue mix).

Cera Sanitaryware reported a flat revenue of ~Rs4.9bn in Q2 FY26, largely due to subdued retail environment and poor performance of faucetware.

We maintain our BUY recommendation on the stock.

Cera Sanitaryware (CRS) reported flat revenue YoY in Q2FY26 with faucetware segment decelerating 3.5% YoY (6- year CAGR of ~16%) on a high base, whereas sanitaryware segment growing 1.4% YoY.

Misses estimates for Q2FY26 due to lower-than-expected revenue (-0.9% YoY vs +6.0% estimated) on weak retail demand

Amidst the subdued demand environment, Cera Sanitaryware reported a stable performance. Revenue grew 5.4% y/y to Rs4.2bn, largely supported by faucets as sanitaryware revenue was flat.

We maintain our BUY recommendation on the stock.

increase in employee cost and B2B contribution. CRS aims to outperform the industry by 6-7%, with EBITDA margin of 15-16% by the end of FY26. The company continues to hold off its sanitaryware expansion plans until the demand environment improves. We estimate revenue/ EBITDA/PAT CAGR of 11.4%/12.2%/10.7% over FY25-27E. We downward revise FY26/FY27E earnings estimate by 1.9%/2.8% and reduce TP to Rs7,178 (Rs7,389 earlier), based on 30x FY27E earnings. Maintain Accumulate' rating....

Margin miss in Q1 due to the inability to pass on cost inflation pressure in a weak demand environment

Cera Sanitaryware Ltd.'s (Cera) Q1FY26 performance was in-line with our estimate on net sales front, while margins disappointed. The industry is facing subdued market condition from the last six to seven quarters. Consequently, there has been no price increase in the sector for some time, especially in Sanitary ware. However, the management guided that the long-term outlook is expected to stay strong, supported by continued formalization of the sector, rising aspiration of the consumers, and supporting policy initiatives such as urban redevelopment, housing schemes, and sanitation infrastructure. The...

We initiate coverage of Cera Sanitaryware Ltd. with a BUY recommendation and a target price of Rs 8,500/share, implying a potential upside of 31% from the CMP.

the retail space for CRS. CRS reported 5.8% growth in revenue with 130bps expansion in EBITDA margin in Q4FY25 due to cost management and operational leverage. CRS is expected to outperform the industry by 6-7%, with EBITDA margin of 15-16% by the end of FY26. The company continues to hold...

to gain insights into demand, competition, capacity expansion plans, and product diversification strategies for the near to long term. We believe demand challenges in the bathware segment will continue in the near term. However, the management expects demand to revive in Q2FY26. The company aims to drive growth through product diversification, focusing on premium offerings. In the long term, growth is expected to come from premium products, which are targeted to contribute to 10% of revenue in the...

The bathware industry slowed down from Q3FY24, but the company expects gradual pick-up in demand from H2FY25 onwards

Cera Sanitaryware’s H1 remained soft as revenue was flat at Rs8.9bn. EBITDA declined 11.4% y/y, while PAT inched up 1.7% y/y to Rs1.2bn.