Cera Sanitaryware Limited (NSE: CERA), a leading player in India\u2019s home solutions sector, announced its financial results for the third quarter ended December 31, 2025 (Q3 FY26). While the company demonstrated resilient top-line growth driven by its faucetware division, profitability faced significant pressure from rising input costs and one-time exceptional provisions.<\/p>\n\n\n\n
Cera reported a divergence between its sales volume and net earnings, reflecting a challenging quarter for margins.<\/p>\n\n\n\n The company\u2019s diverse portfolio helped mitigate sluggishness in specific retail segments.<\/p>\n\n\n\n Faucetware Excellence: This segment was the star performer, recording a robust 18.2% YoY growth, supported by healthy replacement demand and high capacity utilization, which reached 102% during the quarter.<\/p>\n\n\n\n Sanitaryware Stability: The core sanitaryware segment saw a more moderate growth of 6.4%, with capacity utilization standing at 82%.<\/p>\n\n\n\n Revenue Mix: Sanitaryware and faucetware remained the primary drivers, contributing 48% and 40% to total revenue, respectively. The project-led (B2B) business accounted for 38% of the topline.<\/p>\n\n\n\n The sharp 300-basis-point contraction in EBITDA margins was attributed to a combination of external cost pressures and strategic internal spending.<\/p>\n\n\n\n Input Costs: Management highlighted a 12% rise in brass prices during the quarter, which significantly impacted the faucetware manufacturing cost structure.<\/p>\n\n\n\n Branding and Discounts: To gain market share in a competitive environment, Cera increased trade discounts and ramped up publicity spending for its premium Senator and Polyplus brands.<\/p>\n\n\n\n Exceptional Items: The bottom line was further impacted by a one-time provision of \u20b918.46 crore related to the implementation of the New Labour Codes, specifically for revised gratuity and leave encashment liabilities.<\/p>\n\n\n\n In a move to focus on its core manufacturing strengths, Cera completed the divestment of its 51% stake in two subsidiary LLPs; Packcart Packaging and Race Polymer Arts in late 2025. Consequently, the company has transitioned to reporting standalone financial results.<\/p>\n\n\n\n During the post-earnings conference call on February 5, 2026, the management team, led by Chairman Mr. Vikram Somany, outlined a strategy for margin normalization.<\/p>\n\n\n\n Price Revisions: Cera plans to implement calibrated price hikes across both sanitaryware and faucetware in the coming months to pass on rising material costs.<\/p>\n\n\n\n Margin Guidance: The company expects margins to recover to 13-14% in Q4 FY26, aiming for a return to the historical 15-17% range by the second half of FY27.<\/p>\n\n\n\n Network Expansion: The premium Senator brand now has 32 operational flagship stores. Management is shifting toward a “calibrated expansion” to ensure each store reaches optimal performance before scaling further.<\/p>\n\n\n\n Growth Outlook: Despite near-term volatility, the company remains optimistic, projecting a full-year revenue growth of 7-8%.<\/p>\n\n\n\n Investors reacted cautiously to the earnings miss, with the stock sliding roughly 3% post-announcement. While the revenue trajectory remains positive, the market’s focus is firmly on how quickly Cera can restore its margins amidst high commodity volatility and the structural cost shifts brought about by the new labor laws.<\/p>\n","protected":false},"excerpt":{"rendered":" Cera Sanitaryware Limited (NSE: CERA), a leading player in India\u2019s home solutions sector, announced its financial results for the third quarter ended December 31, 2025 (Q3 FY26). While the company demonstrated resilient top-line growth driven by its faucetware division, profitability faced significant pressure from rising input costs and one-time exceptional provisions. Financial Highlights: Q3 FY2026 […]<\/p>\n","protected":false},"author":2383,"featured_media":125269,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1941,9825,392,10444],"tags":[8220],"class_list":["post-179700","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-analysis","category-earnings-call-highlights","category-earnings","category-others","tag-building-materials"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":170168,"url":"https:\/\/alphastreet.com\/india\/cera-sanitaryware-q1-fy26-earnings-results\/","url_meta":{"origin":179700,"position":0},"title":"Cera Sanitaryware Q1 FY26 Earnings Results","author":"Divyansh_Kasana","date":"August 14, 2025","format":false,"excerpt":"Cera Sanitaryware Limited is engaged in the manufacturing, selling, and trading of a wide range of building products. The company also operates non-conventional wind and solar power plants in Gujarat for captive consumption. Presenting below are its Q1 FY26 Earnings Results. Q1 FY26 Earnings Results Revenue: \u20b9422 crore, up 5.24%\u2026","rel":"","context":"In "AlphaGraphs"","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"CERA Q1 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/CER.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/CER.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/CER.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/CER.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/CER.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/CER.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":166000,"url":"https:\/\/alphastreet.com\/india\/cera-sanitaryware-ltd-q2fy25-21-rise-in-profits\/","url_meta":{"origin":179700,"position":1},"title":"Cera Sanitaryware Ltd Q2FY25; 21% rise in Profits","author":"Divyansh_Kasana","date":"December 11, 2024","format":false,"excerpt":"Cera Sanitaryware Ltd is engaged in the business of manufacturing, selling and trading of various kinds of building products. It also has non-conventional wind & solar power for captive use in the state of Gujarat. 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It also has non-conventional wind & solar power for captive use in the state of Gujarat. Financial Results: Cera Sanitaryware Ltd reported Revenues for Q4FY25 of \u20b9581.00 Crores up from \u20b9549.00\u2026","rel":"","context":"In "AlphaGraphs"","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/05\/L-13.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/05\/L-13.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/05\/L-13.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/05\/L-13.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/05\/L-13.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/05\/L-13.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":167430,"url":"https:\/\/alphastreet.com\/india\/cera-sanitaryware-ltd-q3fy25-12-fall-in-profits\/","url_meta":{"origin":179700,"position":3},"title":"Cera Sanitaryware Ltd Q3FY25; 12% fall in Profits","author":"Divyansh_Kasana","date":"March 18, 2025","format":false,"excerpt":"Cera Sanitaryware Ltd is engaged in the business of manufacturing, selling and trading of various kinds of building products. It also has non-conventional wind & solar power for captive use in the state of Gujarat. 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It also has non-conventional wind & solar power for captive use in the state of Gujarat. Financial Results: Cera Sanitaryware Ltd reported Revenues for Q1FY24 of \u20b9429.00 Crores up from \u20b9397.00\u2026","rel":"","context":"In "AlphaGraphs"","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-113.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-113.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-113.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-113.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-113.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-113.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":162257,"url":"https:\/\/alphastreet.com\/india\/cera-sanitaryware-ltd-q4fy24-19-rise-in-profits\/","url_meta":{"origin":179700,"position":5},"title":"Cera Sanitaryware Ltd Q4FY24; 19% rise in Profits","author":"Divyansh_Kasana","date":"June 18, 2024","format":false,"excerpt":"Cera Sanitaryware Ltd is engaged in the business of manufacturing, selling and trading of various kinds of building products. It also has non-conventional wind & solar power for captive use in the state of Gujarat. Financial Results: Cera Sanitaryware Ltd reported Revenues for Q4FY24 of \u20b9547.00 Crores up from \u20b9533.00\u2026","rel":"","context":"In "AlphaGraphs"","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/06\/image-152.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/06\/image-152.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/06\/image-152.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/06\/image-152.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/06\/image-152.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/06\/image-152.png?resize=1400%2C800&ssl=1 4x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/179700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/2383"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=179700"}],"version-history":[{"count":3,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/179700\/revisions"}],"predecessor-version":[{"id":179707,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/179700\/revisions\/179707"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125269"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=179700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=179700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=179700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Metric<\/strong><\/td> Q3 FY2026 Actual<\/strong><\/td> Q3 FY2025 (YoY)<\/strong><\/td> Variance (%)<\/strong><\/td><\/tr><\/thead> Revenue from Operations<\/strong><\/td> \u20b9499 Crores<\/td> \u20b9449 Crores<\/td> +11.1%<\/td><\/tr> EBITDA (Excl. Other Income)<\/strong><\/td> \u20b951 Crores<\/td> \u20b959 Crores<\/td> -14.0%<\/td><\/tr> EBITDA Margin<\/strong><\/td> 10.2%<\/td> 13.2%<\/td> -300 bps<\/td><\/tr> Net Profit (PAT)<\/strong><\/td> \u20b924 Crores<\/td> \u20b946 Crores<\/td> -48.4%<\/td><\/tr> Diluted EPS<\/strong><\/td> \u20b918.35<\/td> \u20b935.56<\/td> -48.4%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Segment Performance: Faucetware Takes the Lead<\/h2>\n\n\n\n
Profitability Under Pressure: The “Brass” Burden<\/h2>\n\n\n\n
Strategic Divestments and Portfolio Sharpening<\/h2>\n\n\n\n
Con Call Highlights: The Road to Recovery<\/h2>\n\n\n\n
Investor Outlook<\/h2>\n\n\n\n