Cera Sanitaryware revenue up 27%, quarterly profit down 1%

CERA Sanitaryware Limited reported September-quarter revenue from operations of Rs 602.96 crore, up 27% year-on-year, while net profit fell 1% to Rs 56.14 crore for the quarter ended September 30, 2026. Total expenses increased to Rs 540.83 crore from Rs 417.74 crore, offsetting the higher sales base.

How did Cera Sanitaryware perform in the September 2026 quarter?

Cera Sanitaryware increased revenue from operations by Rs 129.55 crore from Rs 473.41 crore in the quarter ended September 30, 2025, to Rs 602.96 crore in the latest quarter. Total income, which includes other income, rose to Rs 613.85 crore from Rs 489.97 crore. Other income declined to Rs 10.89 crore from Rs 16.56 crore, even as operating revenue expanded.

Cera Sanitaryware's profit before tax rose to Rs 73.02 crore from Rs 72.23 crore a year earlier, but net profit declined to Rs 56.14 crore from Rs 56.65 crore. Total tax expense was Rs 16.88 crore, compared with Rs 15.59 crore in the corresponding quarter. Basic and diluted earnings per share were Rs 43.52, against Rs 43.92 a year earlier.

Sequentially, Cera Sanitaryware's revenue rose by Rs 116.98 crore from Rs 485.98 crore in the quarter ended June 30, 2026. Net profit increased by Rs 10.83 crore from Rs 45.31 crore, while profit before tax rose by Rs 13.20 crore from Rs 59.81 crore. Earnings per share also increased from Rs 35.13 in the June quarter to Rs 43.52 in the September quarter.

Paid-up equity share capital was unchanged at Rs 6.45 crore at September 30, 2026, with a face value of Rs 5 per share. That unchanged capital base means the movement in quarterly earnings per share reflected the change in profit. Total comprehensive income was Rs 51.03 crore, lower than net profit because other comprehensive income was negative Rs 5.11 crore.

Why did Cera Sanitaryware's profit decline despite higher sales?

Cera Sanitaryware's total expenses increased by Rs 123.10 crore year-on-year to Rs 540.83 crore in the September 2026 quarter, a faster absolute increase than the Rs 129.55 crore gain in revenue from operations after accounting for the lower other income. Purchases of stock-in-trade, materials consumed, employee benefits and other expenses all rose from the year-earlier quarter.

Purchases of stock-in-trade were Rs 255.74 crore, up Rs 63.50 crore from Rs 192.24 crore. Cost of materials consumed rose to Rs 105.10 crore from Rs 63.82 crore, while employee benefits expense increased to Rs 72.20 crore from Rs 65.23 crore. Other expenses rose by Rs 18.84 crore to Rs 119.54 crore.

Inventory changes produced a credit of Rs 22.90 crore in the September 2026 quarter, compared with a credit of Rs 15.72 crore a year earlier. Finance costs fell to Rs 1.38 crore from Rs 1.64 crore, and depreciation and amortisation declined marginally to Rs 9.77 crore from Rs 9.83 crore. These movements partly offset the larger increases in purchases, materials, payroll and other operating expenses.

What do Cera Sanitaryware's half-year results show?

Cera Sanitaryware reported revenue from operations of Rs 1,088.94 crore for the six months ended September 30, 2026, compared with Rs 880.21 crore in the year-earlier half. The Rs 208.73 crore increase in revenue did not translate into higher net profit, which declined to Rs 101.45 crore from Rs 103.18 crore.

Total income for the six-month period rose to Rs 1,121.12 crore from Rs 915.38 crore, while total expenses increased to Rs 988.29 crore from Rs 782.01 crore. Profit before tax was Rs 132.83 crore, marginally below Rs 133.37 crore a year earlier. Total tax expense increased to Rs 31.38 crore from Rs 30.19 crore.

Cera Sanitaryware's first-half basic and diluted earnings per share were Rs 78.66, compared with Rs 80.00 for the six months ended September 30, 2025. Total comprehensive income was Rs 96.42 crore, below Rs 102.55 crore in the prior-year half, as other comprehensive income was negative Rs 5.03 crore compared with negative Rs 0.63 crore.

The half-year results show a contrast with the sequential quarterly movement: revenue and profit both rose from the June quarter to the September quarter, but first-half profit remained below the previous year's level. The disclosed figures do not provide a product-level or geographic sales split, because Cera Sanitaryware reported no separate operating segments.

What balance-sheet and accounting matters did Cera Sanitaryware disclose?

Cera Sanitaryware reported total assets of Rs 2,004.33 crore at September 30, 2026, compared with Rs 1,958.20 crore at March 31, 2026. Current investments increased to Rs 844.75 crore from Rs 801.20 crore, inventories rose to Rs 423.61 crore from Rs 395.77 crore, and trade receivables decreased to Rs 226.61 crore from Rs 273.87 crore.

Total equity was Rs 1,469.85 crore at September 30, 2026, compared with Rs 1,472.34 crore at March 31, 2026. Trade payables to creditors other than micro and small enterprises rose to Rs 134.81 crore from Rs 94.06 crore, while current borrowings were Rs 87.55 lakh, compared with Rs 87.22 lakh at the March year-end.

Cera Sanitaryware said it mainly manufactures building products, while its other activities are incidental and carry similar risks and returns. It therefore reported no separate segments under Indian Accounting Standard 108, known as Ind AS 108, and said sales are substantially domestic. The statutory auditors issued an unmodified limited-review report on the unaudited quarter and half-year results on November 4, 2026.

Cera Sanitaryware had recognised an exceptional item of Rs 7.81 crore in the year ended March 31, 2026 for estimated incremental gratuity and leave-benefit liabilities linked to new labour codes effective November 21, 2025. No exceptional item was reported in the September 2026 quarter or first half. The company said it continues to monitor the finalisation of central and state rules and further government clarifications for any additional accounting impact.

Conclusion

Cera Sanitaryware delivered a substantial increase in September-quarter revenue, with sales rising Rs 129.55 crore year-on-year to Rs 602.96 crore, but higher purchases, material costs, employee benefits and other expenses limited the outcome. Profit before tax rose slightly, while the increase in tax expense and lower other income contributed to net profit falling Rs 0.51 crore to Rs 56.14 crore. The six-month figures similarly show revenue growth alongside a modest decline in net profit.

The disclosed matters to watch next are Cera Sanitaryware's assessment of any further labour-code-related liability after central or state rules and government clarifications are finalised. Separately, the board approved the proposed five-year reappointment of Chairman and Managing Director Vikram Somany from July 1, 2027, and Independent Director Anandh Sundar from February 12, 2027, in each case subject to shareholder approval through a postal ballot whose voting details are to be announced separately.