Somany Ceramics (531548) Q1 26/27 earnings summary

Executive summary

• Consolidated revenue grew 24% year-over-year to INR 744 crore in Q1 FY27, driven by improved realizations, favorable product mix, and moderate sales volume growth of 3%.

• EBITDA margin improved by 3.6 percentage points to 11.6%, supported by operational efficiencies, higher capacity utilization, and product mix.

• PAT rose 365.7% year-over-year to INR 34 crore, with EPS at INR 8.66, up 242.3%.

• Industry faced supply-side disruptions from fuel shortages and labor issues, but conditions normalized by quarter-end.

• Announced a new manufacturing facility in the South with 9+ million sqm annual capacity for Glazed Vitrified Tiles.

Financial highlights

• Q1 FY27 consolidated sales: INR 744 crore, up 24% year-over-year; standalone sales: INR 688 crore, up 18.6%.

• EBITDA: INR 86 crore, up 78.9% year-over-year; EBITDA margin at 11.6%.

• Profit before tax: INR 50 crore, up 337.1% year-over-year; PAT: INR 34 crore, up 365.7%.

• EPS: INR 8.66, up 242.3% year-over-year.

• Working capital days reduced from 17 to 12 days, with significant inventory reduction.

Outlook and guidance

• Management is confident of maintaining or improving current EBITDA margins, targeting 11%+ and aiming for 12%+ as capacity utilization and product mix improve.

• Volume growth guidance remains at mid-single digits for the year, with value growth expected to outpace volume.

• Optimistic about industry growth, supported by demand from housing, infrastructure, and renovation.

• New 9+ million sq. meter plant in the South to be operational in 12-15 months, expected to add INR 350 crore in revenue.