In the first quarter of FY27, Cera Sanitaryware increased its revenue by 19.5% compared to the same period last year. The growth was led by a 14.1% rise in faucetware sales and a 25.3% jump in sanitaryware sales.
Despite the revenue rise, the company’s operating profit margin slipped to 10.1%, a drop of 292 basis points year‑over‑year. The decline was largely due to a 547‑basis‑point shrinkage in gross margin, as price hikes were delayed.
EBITDA fell 7.3% year‑over‑year. Management said that demand in the retail segment continued to improve, and the project segment remained healthy, helping to cushion the impact of margin pressure.
For the full FY27, management projects revenue growth of 18–20% and an operating margin of 13.5–14%. This outlook is supported by price increases of about 12% in sanitaryware and 16% in faucetware that were implemented between March and May 2026, covering roughly 60% of total revenue.
ICICI Securities has revised its financial estimates and upgraded the recommendation from Add to BUY. The brokerage cites reasonable valuations and has set a target price of INR 7,350 for the stock in June 2027.