Cera Sanitaryware Limited — Q3 FY26
Cera Sanitaryware reported Q3 FY26 revenue of ₹499 crore, up 11.1% YoY, driven by gradual demand recovery and improved market traction.
neutral
medium
Financial stats pending filing verification
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
86%Questions answered0Evaded / deflected11Questions auditedMixedNumbers vs filing
Answered
High priority
Confirm if 300 bps EBITDA margin drop is from faucets and brass price increase.
Asked by Jasp Singh, Equinis PMS
Management confirmed the drop was due to trade discounts and brass price increase, providing specifics.
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Question
So the 300 basis point drop in EBITDA margin and gross margin... largely coming from faucets and largely because of the brass price increase. Can you confirm?
Mr. Vicas (Management)
EBITDA margins by 3% this was primarily driven by the increase in the trade discounts... Additionally the COGS increased mainly due to the increase in the input cost. So brass prices have increased by roughly 12%.
Partial answer
High priority
Why has EBITDA margin fallen to 10% multi-decade low and what changed?
Asked by Jasp Singh, Equinis PMS
Management explained it as one-off but did not quantify the exact impact of phasing costs.
attributed to one-off phasingno quantification of one-off impactdeferred to Q4 recovery
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Question
So I'm just surprised and confused... that a quarterback or let's say we were riding a 14 to 15% kind of a margin and suddenly the trajectory shifted to 10%... So what has so drastically changed?
Management (Mr. Vicas and another)
We are looking at one quarter and we are trying to extrapolate it... we don't anticipate that this is going to be the trend going forward... it has been due to some of the phasing impacts... publicity costs had been higher in Q3... CSR activities also... pre-operative cost related to senators.
Partial answer
High priority
Why has revenue been stagnant despite strong real estate cycle?
Asked by Sunny, Individual Investor
Management cited recent growth but did not explain past stagnation or commit to 15% growth timeline.
did not address why past projections missedno timeline for 15% growth
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Question
So I just wanted to know... we were projecting a 17% revenue growth over the next 2-3 years... our sales has been highly stagnant over the last three or four years... when do you expect this above 15% revenue growth?
Management
For the last two years there had been stagnancy in the growth... Q3 we see that it has been grown by 11.1% and Q2 also we had grown by 5 to 6%. So the growth trajectory has already started happening... we should be ending the year by roughly 7 to 8% on an overall full year basis.
Answered
Medium priority
Was Q3 growth due to pre-buying before price hike or actual demand improvement?
Asked by Valun Jalastria, 361 Capital
Management clearly stated growth was from demand, not pre-buying, with timing evidence.
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Question
I just wanted to know sir if this growth for the current quarter was due to pre-buying before the price hike or was there actual improvement in demand?
Management
There's an actual improvement in demand... the price increase has happened only yesterday. The announcement has been made only yesterday. So Q3 there was no talk about any price increase.
Partial answer
Medium priority
How much was the price hike and raw material cost increase?
Asked by Valun Jalastria, 361 Capital
Management gave raw material cost details but did not specify the price hike percentage here.
did not state the price hike percentage in this answer
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Question
And so how much was the price hike which we took and how much was the increase in raw material cost?
Management
The brass prices have fluctuated widely... in Q3 it has risen by something like 12%. In January again it has gone up significantly... the average price was something like 640 for brass per kg which has gone up to something like 800 in January.
Answered
Medium priority
What was the publicity cost in Q3 and spend on Senator and Polyplus?
Asked by Arun B, ICIA Securities
Management provided specific numbers for publicity and new brand spends.
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Question
You mentioned that publicity cost was higher in Q3. Can you share that number? also the spend done on senator and polyplus in the last 9 months and particularly in Q3.
Management
In current quarter the publicity spend was 17.27 crores as opposed to 13.87 crores... In Q3 we spent something like 6 crores in polyplus and senator... the publicity spend for the entire year for 9 months has been something like 35.58 crores.
Answered
High priority
Is the 11% faucet and 4% sanitary price increase sufficient to cover cost increases?
Asked by Arun B, ICIA Securities
Management confirmed the price hike covers current cost increases.
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Question
What you announced is about 11% plus price increase in case of faucet and 4% plus in case of sanitaryware... is that sufficient to cover whatever increase has happened?
Management
The price increase would be sufficient to cover the kind of increases which have happened till date. Obviously if it keeps on increasing at the current trend then again we'll have to revisit.
Answered
Medium priority
Why was Cera late in announcing price hike compared to market leader?
Asked by Arun B, ICIA Securities
Management explained the timing based on their prior price increase and cost dynamics.
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Question
One more feedback which we have from dealers is you were the last guys to announce the price hike... any reason why we are delaying it till 1st of March?
Management
The market leader had not taken a price rise since quite some time whereas we had in September 24 taken a substantial price increase in faucetware... that price increase was kind of helping us to maintain our margins.
Answered
High priority
Will margins return to 15-16% in FY27 assuming no further cost increases?
Asked by Arun B, ICIA Securities
Management gave a clear affirmative answer.
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Question
So after this price increase if I get it right in FY27 you will go back to your margin rate of 15-16% which you used to look at earlier. Is that correct?
Management
Correct. Correct. Correct.
Answered
Medium priority
Do large players gain market share in rising raw material price cycles?
Asked by Sujit (from Bajaj Life Insurance), Bajaj Life Insurance
Management directly answered that market share gains are not typical in such cycles.
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Question
Do you benefit in a rising prices scenario when raw metal prices rise... did you gain market share in the previous cycle when this happened in COVID?
Management
A cost increase led price increase is not something which is going to affect the market share of individual players... it is not that on a rising cost scenario larger players are able to take in higher price increases and are able to garner higher market shares.
Answered
Medium priority
Is demand currently muted given higher project discounts?
Asked by Sujit (from Bajaj Life Insurance), Bajaj Life Insurance
Management denied muted demand, citing growth and stable project share.
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Question
So can we say that currently the demand remains muted?
Management
The demand has started going up. If you see that we have grown by 6% and 11.2% over the last few quarters. The total share of projects within the business has remained constant at the same 38-39%.
Answered
Low priority
What is the outsourcing proportion for sanitaryware and faucetware?
Asked by Bavin Rupani, Invest
Management provided exact percentages.
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Question
What is our outsourcing proportion for sanitaryware and faucetware?
Management
In Sanware the outsourcing was 61%. And in faucetware the outsourcing was 47%.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| EBITDA margin dropped 300 bps due to trade discounts and brass price increase. | -300 bps | -300 bps | Matches filing |
| Q3 revenue growth of 11.1%. | 11.1% | 11.1% | Matches filing |
| Q2 revenue growth of 5 to 6%. | 5.5% | 11.1% | Understated vs filing |
| Full year revenue growth expected 7 to 8%. | 7.5% | 11.1% | Understated vs filing |
| Senator and Polyplus sales in 9 months were 7-8 crores. | ₹7.5 cr | ₹499 cr | Understated vs filing |
| Revised full year sales guidance for Senator and Polyplus to 20 crores. | ₹20 cr | ₹499 cr | Understated vs filing |
| Next year Senator and Polyplus revenue guidance 100-120 crores. | ₹110 cr | ₹499 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.