Somany Ceramics (531548) Investor presentation summary

Industry trends and market dynamics

• Domestic demand remains strong, driven by residential real estate, renovations, premium housing, and infrastructure spending.

• Premiumization trend is accelerating, with consumers preferring higher-value tiles and finishes.

• Export volumes and values declined sharply due to industry disruptions and higher gas prices.

• Organized players with multi-geography presence are gaining market share amid disruptions.

• Price hikes have been implemented to offset increased fuel and logistics costs.

Strategic initiatives and operational improvements

• Distribution network expanded to ~3,100 active dealers and 550 exclusive showrooms, with 200 new dealers added in FY26.

• Channel restocking is normalizing after pre-price hike stock accumulation and gas price uncertainty.

• High utilization, JV profitability, and low-capex enhancements are set to drive margin and earnings growth.

• Capacity utilization of owned manufacturing facilities is projected to reach 90% in FY27E, with further expansion planned.

• Additional 9.9 MW of solar capacity is operational, supporting sustainability goals.

Profitability and margin expansion

• EBITDA margins are expected to rise from 9.3% to ~11.3% in FY27, with a further 100 bps increase in FY28.

• Margin expansion is driven by higher capacity utilization, JV performance, plant debottlenecking, and a premium product mix.