Cera Sanitary. Q1 FY27 Results (NSE: CERA)
Signal: Margin pressure
The read
The key trajectory issue is a YoY margin reset: revenue accelerated to +19.46% from the recent Q1FY26 growth of +5.2%, but EBITDA margin fell 311bps to 14.51% after Q4FY25's 19% margin, as gross margin compressed 547bps with raw-material consumption rising to 17.09% of revenue; PAT still declined 2.16% despite ₹2128.72 lakh of other income.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹485.98 Cr | +19.46% | -22.12% |
| EBIT | ₹61.08 Cr | -2.39% | |
| Net profit | ₹45.31 Cr | -2.16% | |
| EPS | ₹35.13 | -2.63% | |
| EBIT margin | 14.51% |
P&L walk
Revenue increased to ₹48598.16 lakh, +19.46% YoY but -22.12% QoQ, while gross margin compressed 547bps YoY to 45.84% as raw-material consumption rose to 17.09% of revenue from 14.67%; EBITDA fell 1.63% YoY and margin declined 311bps to 14.51%, leading EBIT down 2.39% and PAT down 2.16%.
Key positives
- Revenue from operations increased to ₹48598.16 lakh, +19.46% YoY, materially above Q1FY26's +5.2% YoY growth.
- Operating expenses excluding material costs grew 10.86% YoY to ₹18425.39 lakh, slower than the 19.46% revenue growth.
- Finance costs declined 12.05% YoY to ₹126.84 lakh, while depreciation rose only 3.63% to ₹942.25 lakh.
Key concerns
- Gross margin compressed 547bps YoY to 45.84% as cost of materials consumed rose 39.18% YoY to ₹8305.28 lakh and increased to 17.09% of revenue from 14.67%; the filing does not disclose the cause.
- EBITDA declined 1.63% YoY to ₹7050.39 lakh and EBITDA margin fell 311bps to 14.51%, reversing the 19% margin reported in Q4FY25.
- Revenue growth was not converted into profit growth: PAT fell 2.16% YoY to ₹4531.04 lakh despite ₹2128.72 lakh of other income.
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