Cera Sanitaryware (CRS IN) – Q3FY26 Result Update – Margins to recover; growth & expansion on track – BUY
Published on 06 Feb 2026
We are maintaining our ‘BUY’ rating. Cera Sanitaryware (CRS) has reported double-digit revenue growth in Q3FY26 and expects similar growth in coming qtrs. In Q3FY26, EBITDA margin got contracted due to higher trade discounts, rising brass costs, along with higher phased Advertisement spend, However the dip is largely one-off, with margins expected to recover to ~13–14% from Q4FY26 onwards. The company has taken price hikes of ~4% in sanitaryware and ~11% in faucetware segment in Q4FY26. CRS has maintained its guidance of 7-8% growth in revenue, with EBITDA margin of 14.5-15% by the end of FY26. We estimate revenue/EBITDA/PAT CAGR of 12.5%/16.5%/15.9% over FY26-28E. We have downward revised our earnings estimates by 4.4%/6.7% for FY27/FY28E and Maintained ‘BUY’ rating with a TP to Rs6,800 based on 30x Mar’28 earnings.
