1. At a Glance
Cera Sanitaryware Ltd currently trades at ₹5,184, carrying a market cap of ₹6,687 Cr—which means the market still treats it like a premium bathroom brand, even when the quarterly numbers are having a slightly slippery moment. Q3 FY26 delivered ₹499 Cr in revenue (+11.1% YoY) but PAT dropped 23.7% YoY to ₹23.7 Cr, reminding investors that even luxury washrooms can have clogged pipes occasionally.
The stock is down ~16% in the last 3 months and ~24% over 1 year, yet the balance sheet still flexes with ROCE of 22.4%, ROE of 18.3%, and a debt-to-equity of just 0.04. Translation: profits stumbled, but the business didn’t faceplant.
Dividend lovers still get 1.25% yield, promoters hold a steady 54.4%, and interest coverage at 45x says banks aren’t losing sleep. The real question: is this a temporary flush issue or structural leakage? Let’s open the cistern.
2. Introduction
Cera Sanitaryware is that rare Indian consumer durables company which sells toilets… and still commands a premium multiple without embarrassment. Over the years, it has moved from being “that decent bathroom brand” to a full-stack bathware lifestyle company, complete with faucets, tiles, wellness products, mirrors, and now even POLIPLUZ bathware.
But Q3 FY26 arrived like a cold shower. Revenue grew, margins shrank, and PAT took a hit—largely due to exceptional items and margin pressure, not because Indians stopped renovating bathrooms. In fact, the project order book rose to ₹1,215 Cr, premium products now form ~43% of revenue, and new product launches continue at an almost FMCG-like pace.
So why the market tantrum? Because Cera is priced like a premium compounder, and premium compounders are not allowed to
have bad hair days. This article dissects whether Q3 FY26 is just a bad morning or a sign that the mirror needs cleaning.
3. Business Model – WTF Do They Even Do?
At its core, Cera sells things you touch every day but never think about—until they crack, leak, or embarrass you in front of guests.
The business operates across:
- Sanitaryware (49% of FY25 revenue) – toilets, basins, urinals
- Faucetware (39%) – taps, showers, mixers
- Tiles (10%)
- Wellness & Others (2%)
Cera plays a clever good–better–best branding game:
- CERA → mass-premium
- CERA Luxe → premium
- Senator → luxury, “my bathroom costs more than your car” category
Manufacturing is a hybrid model. Sanitaryware is still 57% outsourced, while faucetware manufacturing has crossed 52% in-house, improving control and margins. The Kadi, Gujarat facility runs on natural gas and captive wind & solar power—eco-friendly toilets, literally.
This isn’t a capex-hungry steel plant; it’s a brand + distribution + working capital discipline business. And when that combo works, ROCE sings.
4. Financials Overview
Quarterly Performance Table (₹ Cr)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 499 | 449 | 488 | +11.1% | +2.3% |
| EBITDA | 62.5 | 59 | 67 | +5.9% | -6.7% |
| PAT | 23.7 | 31.0 | 57.0 | -23.7% | -58.4% |
| EPS (₹) | 18.35 | 35.56 | 43.92 | -48.4% | -58.2% |
