ICICI Securities's research report on Cera Sanitaryware
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. OPM fell 44bps YoY primarily due to gross margin falling 172bps YoY (-203bps QoQ) on adverse product mix and employee expenses increasing 58bps YoY, partly negated by lower other expenses (-185bps YoY), resulting in EBITDA decline of 3.5% YoY. Management stated retail segment demand remained muted but project segment was healthy in Q2 (39% of total revenue).
Outlook
Management expects H2FY26 to improve and now guides for 7-8% revenue growth and OPM of 14.5-15% for FY26. We cut PAT by 7.2-7.6% for FY26–27E. Maintain BUY with a rolled over Sept’26E revised TP of INR 7,678.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Cera Sanitaryware_17112025_ICICI Securities