Cera Sanitaryware and GSFC: Demand Stability and Margin Resilience

Cera Sanitaryware reaffirmed its operating margin guidance of 14.5%–15.5%, expecting 10–12% growth in H2 FY26. The company highlighted the impact of premiumization and continued product innovation in driving stable demand.

GSFC’s management attributed Q2 growth to strong fertilizer and industrial performance. Double-digit margins are expected to sustain through FY26, aided by lower raw material prices and stable government subsidies. Phosphoric and sulphuric acid prices rose sharply YoY, but industrial demand remains robust.

Jyothy Labs and Mrs. Bectors Food: Mixed FMCG Performance

Jyothy Labs reported a 16.5% YoY decline in profit to ₹87.6 crore due to margin compression, even as revenue grew marginally to ₹736 crore. Margins fell to 16.06% from 18.87% last year, reflecting higher marketing costs and input price normalization.

Mrs. Bectors Food Specialities posted steady top-line growth of 11.1% to ₹551 crore but faced a 6.2% decline in profit due to softer margins at 12.6% versus 14.21% YoY. Management maintained its focus on expanding biscuit and bakery exports.

Century Plyboards and Shree Cement: Housing-Led Demand Surge

Century Plyboards posted strong results with profit up 72.3% YoY to ₹689 million and EBITDA up 54.9% to ₹1.75 billion. Margins rose to 12.6%, highlighting sustained demand in housing and furniture. Shree Cement commissioned a 3 MTPA cement mill, expanding capacity and strengthening its regional presence.

Both companies are key beneficiaries of India's housing and infra boom, with pricing stability in building materials supporting earnings growth momentum.

Welspun Living, Keystone Realtors, and West Coast Paper Mills

Welspun Living reported weak Q2 with profit plunging 94% to ₹13 crore as global tariff pressure hit exports. Keystone Realtors saw profit decline 87% YoY amid project delays, while West Coast Paper Mills faced an 80% profit drop due to elevated input costs and pricing pressure.

Despite near-term headwinds, management commentary across companies reflects optimism on policy reforms, expected FTA-driven demand, and recovery in margins in H2 FY26.

Campus Activewear, Prima Plastics, and Wonder Electricals

Campus Activewear reported a 40.6% YoY jump in profit to ₹201 million, with EBITDA rising 28% and margins improving to 12.9%. Revenue growth of 18.2% reflected resilient demand in the footwear segment. Prima Plastics delivered 10.7% profit growth on a 14.9% rise in sales, maintaining steady margins.

Wonder Electricals reported revenue down 28.8% YoY but improved EBITDA margin at 4.5% from 2.7% last year, supported by better cost control. The consumer durables sector overall witnessed moderate growth but improved profitability metrics.

Sector Snapshot: Consumption and Specialty Revival

• ✅ FMCG margins remain under pressure but improving sequentially
• ✅ Housing and infrastructure materials driving midcap earnings
• ✅ Select consumer durables show margin expansion despite slower growth
• ✅ Input cost stability and policy tailwinds to support H2 performance

Investor Takeaway

Q2 FY26 for India’s consumption and specialty product sectors revealed a mix of resilience and caution. While housing and cement-related firms led growth, FMCG and export-focused companies navigated cost pressures and global slowdowns with disciplined execution.

Nifty and Bank Nifty Expert Gulshan Khera, CFP®, who is a SEBI Regd Investment Adviser.

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