Somany Ceramics LimitedConsumer GoodsSOMANYCERA
Q1 FY27 earnings callSomany Ceramics Limited
Somany Ceramics delivered a significant 3.6% EBITDA margin improvement to 11.6% in Q1, driven by strong operational efficiency and capacity utilization, despite volatile gas prices.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Sales Growth (Volume) | 3% | — | |
| Sales Growth (Value) | 24% | — | |
| EBITDA Margin | 11.6% | +3.6% | |
| Stand-alone Capacity Utilization | 83% | — | |
| Price Hike (Average) | 16-18% | — |
Financials
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹644.86 Cr+5.3% YoY-3.2% QoQ | ₹9.67 Cr-58.7% YoY-44.2% QoQ | ₹2.26-56.7% YoY-46.1% QoQ |
| Q2 FY25 | ₹666.33 Cr+1.7% YoY+15.2% QoQ | ₹17.34 Cr-41.3% YoY+41.4% QoQ | ₹4.19-39.3% YoY+39.7% QoQ |
| Q1 FY25 | ₹578.58 Cr-1.4% YoY-21.6% QoQ | ₹12.26 Cr-2.5% YoY-63.8% QoQ | ₹3.00-12.5% YoY-59.7% QoQ |
| Q4 FY24 | ₹737.52 Cr+8.6% YoY+20.5% QoQ | ₹33.88 Cr+38.9% YoY+44.8% QoQ | ₹7.45+30% YoY+42.7% QoQ |
| Q3 FY24 | ₹612.14 Cr-1.7% YoY-6.6% QoQ | ₹23.40 Cr+104% YoY-20.8% QoQ | ₹5.22+85.8% YoY-24.3% QoQ |
TL;DR
- Volume sales grew modestly by 3% while value grew by 24%, partly impacted by Morbi supply constraints in April.
- EBITDA margin rose by 3.6% to 11.6%, attributed to better capacity utilization and JV performance turning to profit.
- Gas price volatility was fully passed through to customers via a 16-18% price increase.
- Management is confident in sustaining and improving current EBITDA margins, citing operational efficiencies and ongoing JV improvements.
- Significant capex plan announced: a new 9+ million sqm plant in the South with ~INR 220 crores outlay, plus 4-5 million sqm of debottlenecking in existing lines.
Said on the call
“We remain positive for the entire year for both the single-digit volume growth and also a double-digit margin or the margins which we've given today. We'll only better that going forward.”
From the Q&A
| Topic | What management said |
|---|---|
| Margin Sustainability & Drivers | Management attributes margin improvement primarily to operational efficiency (capacity utilization up from 72% to 83% YoY) and JV turnaround (from INR10 Cr loss to INR3 Cr profit), not pricing power. Confident margins can be sustained and improved even if prices fall. |
| Demand & Volume Outlook | Guidance is for mid-single-digit volume growth for the year. Management is cautious on promises, aiming for deliverable targets. Demand described as 'good' and 'absolutely fine' despite monsoon impact. |
| Morbi Impact & Competitive Pricing | Morbi supply disruption in April impacted volume growth. Morbi is now operational at 100%, but the price premium Somany holds over Morbi products has narrowed due to Morbi's larger price hikes. |
| JV Performance & Capex Plans | JV losses reduced significantly, with expectation of net profit for the full year (swing of over INR30 Cr). Capex for FY27-FY28 is ~INR275 Cr, including a new 9+ million sqm plant (~INR220 Cr) funded 60-70% by internal accruals. Debottlenecking efforts will add capacity and value-added mix in H2. |
| Gas Prices & Cost Pass-Through | Blended natural gas cost is ~INR68, with prices volatile and slightly increasing monthly. All gas price increases have been passed through to customers so far. |
Guidance
- Mid-single-digit volume growth for the year.
- Confident in sustaining and bettering the current 11.6% EBITDA margin, with a target to reach and exceed 12%.
- JV losses to turn into net profit for FY27 (swing of over INR30 Cr from last year).
- New 9+ million sqm plant in South to be operational by Q3/Q4 of next fiscal year (FY28).
Source
Summary written from the transcript filed by Somany Ceramics Limited for the call held on 12 Aug 2026; published 22 Aug 2026, 10:31 IST.