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Earnings Call Transcript

Somany Ceramics Earnings Call Transcript: Key Takeaways

Somany Ceramics delivered margin improvement despite flat volumes, driven by high capacity utilization and operational efficiencies. Management remains cautious on volume growth while aggressively investing in high-margin value-added segments and South India expansion.

Why this was an Alfa AlertEBITDA Margin beat own guidance: guided 10.0–10.5, achieved 11.6 (+10.5% above upper end, mgmt confirmed).
Guidance and delivery
EBITDA Margin: guided vs achieved 11.60% achieved Guided 10.00%–10.50%, 10.5% above the top of the range; confirmed by management
EBITDA Margin guidance 10.5% → 11.5% Raised by 1.0 percentage points
Management target Revenue 7.0% FY27
Highlights
Revenue growth3% volume growth; value grew 24% YoY.
MarginsStructural expansion to 11.6% via operational efficiency.
Order bookProject segment expected to grow to 15% of mix.
Demand visibilitySteady July despite rains; Morbi supply issues normalized.
Management confidenceBalanced; bullish on margins but cautious on volume guidance.

Growth

Moderate 3% volume growth masked by a 24% value surge. Margin expanded to 11.6% due to 83% plant utilization.

Outlook

Guided mid-single digit volume growth and sustainable 11%+ EBITDA margins. ₹220Cr capex for 9MSM South plant.

Risks

High gas price volatility; Morbi export slowdown (down 50-60%) potentially flooding domestic markets; high client concentration in projects.

Last quarter's promises, checked

Delivered

  • Guided EBITDA margin 10.8% or better → delivered 11.6% (= BEAT)
  • Guided Max plant breakeven → delivered breakeven (= BEAT)
  • Guided net dealer additions of 200 → delivered 200 (= BEAT)

Partly delivered

  • Guided 150bps+ margin improvement (from 9.3% base) → delivered 11.6% (= BEAT on margin, but volume-led growth lagged expectations)

Missed

  • Guided double-digit sanitaryware growth → delivered 8% (= MISS)
  • Guided 5-6% volume growth → delivered 3% (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: SOMANYCERA. Summary written with AI assistance from the document.

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Somany Ceramics Ltd: key numbers

Share price
₹618.05
Market cap
₹2,535 Cr
Revenue (annual)
₹2,790 Cr
Net profit (annual)
₹81.19 Cr
P/E (TTM)
23.8×Sector 45.9×
Promoter holding
55.20%+0.00% QoQ
FII holding
1.38%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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16:47 IST BSE
Financial Results

Somany Ceramics Q4 FY26 Results: Net Profit ₹37.4 Cr, Up 100.0% YoY

Somany Ceramics Ltd reported revenue from operations of ₹817.9 Cr (+6.4% YoY) and net profit of ₹37.4 Cr (+100.0% YoY) for Q4 FY26.

Key figure
Net profit ₹37.4 Cr · +100.0% YoY