Somany Ceramics Ltd is engaged in manufacturing and trading of complete decor solutions, its products include ceramic wall and floor tiles, polished vitrified tiles, glazed vitrified tiles, sanitary-ware, bath fittings and allied products. Presenting below are its Q1 FY26 earnings results.
Q1 FY26 Earnings Results
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Revenue: ₹604 crore, up 4.4% year-over-year (YoY).
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Net Profit (PAT): ₹7.3 crore, down about 40.05% YoY; sequential decline from Q4 FY25.
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EBITDA Margin: Around 8%, under pressure from increased operating expenses; dipped from 10.8% in Q4 FY25 and nearly flat YoY.
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Tile Volume: Flat YoY (two-year CAGR +4%), with tile segment revenue down about 3% due to lower realizations (–2% YoY).
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Utilization Rate: 81%, below last quarter’s 89% but above Q1 FY25’s 70%.
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EPS: ₹3.53, down by 15.3% over the last year.
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Segmental Performance: Bathware continued double-digit growth, helping offset margin impact in tiles.
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Operating Highlights: Margins reflect lower plant utilization and pricing pressure amid industry-wide demand softness and ongoing competitive challenges (notably Morbi region dumping).
Management Commentary & Strategic Highlights
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Management remains optimistic about demand recovery, retaining double-digit revenue guidance for FY26 despite near-term pressures.
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July demand was weak, but better than June; outlook expects gradual improvement through FY26, especially in H2 with anticipated normalization of utilization rates.
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Cost controls and focus on improving product mix expected to support margin expansion by 1–1.5% versus FY25.
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The newly commissioned Max plant (large-sized tiles) in Gujarat, currently ramping up from 35–37% utilization, is projected to drive both volume and mix upgrades.
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Bathware segment delivered strong growth, with management focusing on expansion and product innovation.
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No major capacity additions planned; capex focused on efficiency, branding (annual spend 2.75–3% of sales), and ramp-up of premium segments.
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Company continues to address competitive pricing and supply overhang from external players, aiming for stable growth and gradual margin recovery.
Q4 FY25 Earnings Results
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Revenue: ₹769 crore, up 4.2% YoY.
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Net Profit: ₹18.7 crore, down 44.7% YoY.
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EBITDA Margin: 10.8%, higher than Q1 FY26 but below previous years.
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EPS: ₹5.2, down by 31%.
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Segmental Trends: Tiles volume up 3% YoY to 20.4 MSM; bathware segment revenue grew 17.9% YoY and 32.4% QoQ. Margin pressure persisted, leading to APAT miss for the quarter.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.