Cera Sanitaryware Q4 FY26: Net profit falls 9.7%, ₹75 dividend declared
Synopsis
Cera Sanitaryware posted a near-10% profit drop in Q4 FY26 even as revenues surged 11.4% — a classic margin-squeeze story driven by rising costs. The board's ₹75-per-share dividend declaration and a stock recovery suggest investors are looking past the near-term pain, but the 300-basis-point EBITDA margin collapse demands scrutiny.
Key Takeaways
Cera Sanitaryware Q4 FY26 net profit fell 9.7% YoY to ₹77.3 crore (vs ₹85.6 crore in Q4 FY25).
Revenue from operations rose 11.4% to ₹643.8 crore , signalling strong top-line growth.
EBITDA declined 7.3% to ₹97.9 crore ; EBITDA margin compressed to 15.2% from 18.3% .
Board recommended a dividend of ₹75 per share (face value ₹5) for FY 2025-26 .
28th AGM scheduled for 23 July 2026 ; dividend payable within 30 days of approval.
Stock was up 2.1% at ₹5,571.5 , with nearly 10% gains over the past month.
Cera Sanitaryware Limited reported a 9.7% year-on-year decline in net profit for the fourth quarter of FY26 (Q4 FY26), even as revenue grew in double digits, reflecting mounting cost pressures on the Gujarat-based sanitaryware manufacturer. The results were disclosed via a stock exchange filing on Friday, 8 May 2026.
Q4 FY26 Financial Highlights
The company's consolidated net profit for the March 2026 quarter fell to ₹77.3 crore, down from ₹85.6 crore in Q4 FY25. Revenue from operations, however, rose 11.4% to ₹643.8 crore, compared to ₹578 crore in the year-ago period — signalling healthy top-line momentum even as profitability came under pressure.
Margin Compression Weighs on Operating Performance
Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 7.3% to ₹97.9 crore from ₹105.6 crore a year earlier. More strikingly, the EBITDA margin contracted sharply to 15.2% from 18.3% in the corresponding quarter of the previous fiscal — a compression of over 300 basis points. Rising cost pressures were cited as the primary driver of the margin squeeze, a trend that has weighed on several building materials companies in recent quarters.
Board Recommends ₹75 Dividend Per Share
Alongside the earnings announcement, Cera Sanitaryware's board of directors recommended a dividend of ₹75 per equity share of face value ₹5 each for FY 2025-26. The dividend is subject to shareholder approval at the company's 28th Annual General Meeting (AGM), scheduled for 23 July 2026. Once approved, the dividend will be paid within 30 days of declaration.
Stock Reaction and Market Performance
Shares of Cera Sanitaryware Limited initially pared early gains following the earnings announcement before recovering. The stock was trading 2.1% higher at ₹5,571.5 at the time of reporting. Notably, the scrip has gained nearly 10% over the past one month and has turned positive on a year-to-date (YTD) basis, suggesting broader investor confidence in the company's long-term trajectory despite near-term margin headwinds.
About Cera Sanitaryware
Cera Sanitaryware Limited was established in 1980 in Kadi, Gujarat. The company manufactures sanitaryware, faucets, and bath wellness products, serving both premium and mass markets through its brands — Senator, CERA Luxe, and CERA. The company is known for innovations such as water-saving twin-flush toilets and robotic manufacturing processes. With revenue growth remaining robust, the key question for investors will be whether the company can restore margins in the quarters ahead as cost pressures ease.
Point of View
Even for a premium-positioned brand. The ₹75 dividend signals board confidence in cash flows, but the real test will be whether Cera can pass on input costs or absorb them. With the stock already up 10% in a month, much of the recovery optimism may already be priced in.
NationPress
7 Aug 2026
Frequently Asked Questions
What were Cera Sanitaryware's Q4 FY26 results?
Cera Sanitaryware reported a 9.7% year-on-year decline in net profit to ₹77.3 crore in Q4 FY26, while revenue from operations grew 11.4% to ₹643.8 crore. EBITDA margin contracted sharply to 15.2% from 18.3% in the year-ago quarter.
What dividend has Cera Sanitaryware declared for FY 2025-26?
Cera Sanitaryware's board has recommended a dividend of ₹75 per equity share of face value ₹5 each for FY 2025-26. The dividend is subject to shareholder approval at the AGM scheduled for 23 July 2026 and will be paid within 30 days of declaration.
Why did Cera Sanitaryware's profits fall despite higher revenue?
The profit decline was driven by rising cost pressures that compressed operating margins. EBITDA fell 7.3% to ₹97.9 crore even as revenues grew, with the EBITDA margin shrinking by over 300 basis points to 15.2%.
When is Cera Sanitaryware's Annual General Meeting?
Cera Sanitaryware's 28th Annual General Meeting is scheduled to be held on 23 July 2026. The dividend recommended by the board will be put to shareholder vote at this meeting.
How did Cera Sanitaryware's stock react to the Q4 results?
The stock initially pared early gains after the earnings announcement but later recovered, trading 2.1% higher at ₹5,571.5. The scrip has gained nearly 10% over the past month and turned positive on a year-to-date basis.
