Cera Sanitaryware (CRS IN) – Q1FY27 Result Update – Margins Recovery Ahead; Growth Momentum Intact – BUY
Published on 08 Aug 2026
We maintain our ‘BUY’ rating on Cera Sanitaryware (CRS). The company reported double-digit revenue growth in Q1FY27 and expects the growth momentum to sustain in the coming quarters. In Q1FY27, EBITDA margin contraction was primarily driven by a few one-off factors, including the wage settlement, lower fixed-cost absorption due to single-kiln operations, higher contribution from old-price projects, and delayed pass-through of price hikes Management expects margins to recover from Q3FY27 as these factors normalise and expects FY27 EBITDA margins to recover to ~13.5–14%. The company has implemented cumulative price hikes of ~12% in sanitaryware and ~16% in faucetware Q1FY27 to offset from higher input price. CRS has maintained its FY27 revenue growth guidance of ~18–20%. We are downgrading our earnings estimates by 5.3%/2.8% for FY27/FY28. We estimate revenue/EBITDA/PAT CAGR of 15.2%/18.9%/22.4% over FY26-28E. Maintained ‘BUY’ rating with a TP to Rs7,221, based on 30x Mar’28 earnings.
