Somany Ceramics Ltd

Dematerialisation status

• Certificate under Regulation 74(5) for the reporting period has been received from the Registrar and Share Transfer Agent.
• Securities dematerialised/rematerialised have been listed on the relevant stock exchanges.
• Physical certificates for dematerialisation were mutilated and cancelled after verification; depository name substituted as registered owner.

Somany Ceramics Limited: Trading window closed from Thursday, 1 October 2026 till 48 hours after the declaration of unaudited financial results for the quarter and half year ending 30 September 2026

Somany Ceramics Limited — Trading window closed from 1 October 2026 until 48 hours after the declaration of unaudited financial results for the quarter and half year ending 30 September 2026.

Meeting Details

• Date and time: 29 September 2026, 4:00 PM IST.
• Mode: Virtual group meeting.
• Event: Bharat Connect – Arih Capital Virtual Conference.

Participants

• Company representatives (investor relations) to engage with analysts.

Purpose

• Investor/analyst interaction based on publicly available information.

Additional Notes

• Discussions will be based on publicly available information; no UPSI expected.
• Investor update/presentation available on the company website.

Business Overview

• Tiles, bathware, and building solutions; premium products with brand and multi-geography manufacturing.
• Strategic emphasis on capacity expansion, debottlenecking, and captive solar energy.
• Focusing on organized-player efficiency amid industry disruption.

Key Operational Highlights

• Added ~200 dealers in FY26; active network ~3,100 with 550 exclusive showrooms.
• 9 MW solar capacity operational at Kassar Plant; total renewable capacity 26 MWp.
• South India expansion capex INR 220 Cr; 9+ MSM GVT capacity; commissioning 12-15 months.
• Vintage Upgradation ₹16 cr; Sudha Modernization ₹25 cr; Max Optimization press upgrades.
• EBITDA margin target ~11.3% in FY27; +100 bps in FY28E.
• Debottlenecking ~5 MSM GVT capacity; potential ₹200+ cr revenue.
• PBT swing from JV turnaround ₹35-40 cr.

Financial Performance & Outlook

• Exports revenue Q1 FY27 ₹2,900 crore; -39% YoY.
• Export volumes 69 MSM; -51% YoY.
• FY27E EBITDA margin target ~11.3%; FY28E adds ~100 bps.
• Capex: Vintage ₹16 cr; Sudha ₹25 cr; South India ₹220 cr.
• 9 MW solar capacity operational; total renewables 26 MWp.
• Optimum capacity ~95%; ~20% capacity addition FY27E & FY28E.
• Debottlenecking capacity ~5 MSM; ₹200+ cr revenue potential.
• PBT swing from JV turnaround ₹35-40 cr.

Risks & Governance

• Gas/propane price volatility; energy costs elevated with uncertain short-term pricing.
• Exports exposure to global demand; pricing discipline observed in industry.
• Channel restocking normalization; mitigated by stronger brand and wider distribution.
• No governance changes announced in this investor update.

Financial Performance

• Sales growth ~3% in Q1 FY27; value growth ~24%.
• EBITDA margin 11.6% in Q1 FY27, up 3.6 pp.
• Standalone capacity utilization 83% vs 72% prior year; JV losses narrowed to INR 3 cr profit from INR 10 cr loss.
• Gas price volatility; blended natural gas cost ~INR 68; South ~mid-70s; North ~INR 68–69.
• Exports down ~50–60% from peak due to geopolitics; expect recovery as Morbi normalizes.
• Volumes in sanitaryware/bath fittings/building materials expanding; Morbi expansion ongoing.

Operating Update

• Channel inventory lean in March; May–June demand pickup; inventory normalized.
• Receivables and stock in line; working-capital days down from 17 to 12.
• 9+ million sq m South plant will be up-and-running in 12–15 months; potential revenue ~INR 350 cr.
• Additional capacity 4–5 million sq m planned in Bahadurgarh, Gujarat, Morbi, South; ready by Q3, fully by Q4; adds value-added mix.
• JVs show improving performance; balancing equipment to boost value-add.

Projects and Capex

• South plant capex ~INR 220 cr; next year; ~60–70% funded by internal accruals.
• Total capex to end FY27 ~INR 275 cr; includes balancing equipment; ~65–70% funded internally.
• No net capacity increase this year; incremental capacity from balancing equipment (3–4 million sq m).
• Balancing equipment work to conclude by end of Q3; margin uplift expected in Q4.

Outlook and Guidance

• FY27 EBITDA margin guidance: 100–150 bps higher than FY26.
• Volume growth guidance: single-digit; margins to be maintained or bettered.
• Target EBITDA margin of 12% or more (and higher if conditions permit).
• Closing remark: positive on the year; expect improvements in volume and margin.

Q&A Highlights

• Margin uplift driven by higher capacity utilization and JV-loss reduction; pricing pass-through only.
• Gas-cost pass-through continues; Morbi premium narrowed; domestic pricing could ease if gas costs fall.
• Guidance: FY27 single-digit volume growth; potential for 12%+ EBITDA margin; mid-cycle volumes forecast.
• Exports remain weak; expect pent-up demand when Morbi export scenario stabilizes.
• Somany Max: last year ~INR 7 cr loss; this quarter ~INR 1.x cr loss; target to keep loss under INR 10 cr.

AGM Details

• AGM date and mode: 12 August 2026, 10:00 AM, via video conferencing.
• Record date for voting: 5 August 2026.

Resolutions & outcomes

• Adopt standalone and consolidated financial statements; passed with 99.9996% in favour.
• Reappoint Ghanshyam Trivedi (retiring by rotation); approved with 86.71% in favour.
• Approve material related party transactions with Sudha Somany Ceramics Private Limited; passed.

Dividend

• Final dividend of Rs 2 per equity share approved.

Director changes

• Ghanshyam Girdharbhai Trivedi reappointed (retiring by rotation).