Somany Ceramics (531548) Q2 26/27 earnings summary

Executive summary

• Consolidated Q2 FY27 sales were ₹854 crore, up 25.4% YoY; EBITDA was ₹100 crore at an 11.7% margin, versus 7.9% a year earlier.

• Consolidated Q2 PAT was ₹4,156 lakh versus ₹1,231 lakh; H1 PAT was ₹7,579 lakh versus ₹1,966 lakh.

• Domestic retail and project demand remained healthy, while exports faced fuel, freight and trade-related pressures.

Financial highlights

• Q2 consolidated PBT was ₹62 crore versus ₹19 crore; after a ₹2 crore exceptional loss, PAT was ₹42 crore versus ₹12 crore.

• H1 consolidated sales rose 24.6% to ₹1,598 crore; EBITDA was ₹186 crore, up 82.8%, with an 11.6% margin.

• Standalone Q2 sales rose 18.7% to ₹778 crore; EBITDA rose 78.7% to ₹74 crore, with a 9.4% margin, and PAT rose 85.2% to ₹42 crore.

• Tiles revenue was ₹723 crore, up 27%; Bathware revenue was ₹88 crore, up 15%; Building Solutions revenue was ~₹45 crore, up ~28%.

• Joint ventures swung to Q2 profit of ₹3 crore from a ₹12 crore loss; H1 profit was ₹6 crore versus a ₹23 crore loss.

Outlook and guidance

• FY27 revenue growth guidance remains high single digits; EBITDA margin improvement guidance is 2%-2.5% over FY26.

• FY27 Bathware growth guidance is up to 20%; FY28 revenue growth is expected to remain high single digits, with Building Solutions growth of 40%-50% expected to continue next year.

• Q3 volume is expected to exceed H1 levels; EBITDA may be better than or similar to Q2 in absolute terms, and October trading was described as strong.

• Upgrades and maintenance are largely complete; plants are expected to run at optimum capacity, barring further geopolitical disruption.

• Market leadership, brand equity, operational execution, a strong balance sheet and disciplined capital allocation were cited as growth priorities.