Somany Ceramics (531548) Q3 25/26 earnings summary

Executive summary

• Q3 sales grew 6% year-over-year to INR 677 crores, with gradual improvement in domestic demand and easing export pressure.

• Gross margins improved by 2.2% sequentially, and EBITDA margin rose to 9.2%, up 80 basis points.

• PAT nearly doubled year-over-year, reaching INR 18 crore, and PBT increased by 28%.

• Operational improvements, including higher capacity utilisation and cost discipline, led to margin expansion.

• Standalone and consolidated unaudited financial results for the quarter and nine months ended December 31, 2025, were reviewed and approved by the Board of Directors and auditors, with no material misstatements identified.

Financial highlights

• Consolidated sales for Q3 were INR 677 crore, with EBITDA at INR 62 crore (16% growth YoY).

• PAT increased from INR 9 crore to INR 18 crore YoY; EPS for Q3FY26 at INR 4.39, up from INR 2.26 in Q3FY25.

• Standalone revenue from operations for the quarter was ₹64,426 lakhs, with consolidated revenue at ₹67,654 lakhs, both showing growth compared to the same quarter last year.

• Standalone net profit for the quarter was ₹2,229 lakhs, and consolidated net profit was ₹1,701 lakhs.

• Depreciation impact of INR 5 crore due to asset life reduction.

Outlook and guidance

• Guidance for decent single-digit growth for FY 2026 remains unchanged.

• EBITDA margin expected to improve by 1-1.5% in Q4.

• Major capex is largely completed, with expectations of stronger free cash flow generation ahead.

• Max plant losses projected to reduce significantly in FY 2027, with break-even targeted within 18 months.

• The company continues to evaluate the impact of new Labour Codes and will account for any changes upon notification of relevant rules.