Cera Sanitaryware (CRS IN) – Q2FY27 Result Update – Margins Recovery Ahead; Growth Momentum Intact – BUY
Published on 05 Nov 2026
We maintain our ‘BUY’ rating on Cera Sanitaryware (CRS). The company reported healthy revenue growth in Q2FY27, supported by improving demand trends, distribution expansion and market share gains across focus markets. Management remains confident of surpassing its FY27 revenue growth guidance of 20%, while maintaining its EBITDA margin guidance of 13–14%. EBITDA margin improved sequentially to 12.2% in Q2FY27, supported by cost optimisation, process improvements and operating efficiencies, despite continued pressure from elevated brass, gas and outsourcing costs. In H1FY27, CERA has implemented cumulative price hikes of 12% in sanitaryware and 24% in faucetware to offset higher input costs, with benefits expected to flow through from late Q3FY27. Management expects profitability to improve progressively in H2FY27, supported by pricing actions, healthy volume growth and operational efficiencies. We tweak our earnings estimates for FY28/FY29. We estimate revenue/EBITDA/PAT CAGR of 15.0%/17.5%/19.7% over FY26-29E. Maintained ‘BUY’ rating with a TP to Rs6,868, based on 27x Sep’28 earnings.
