Somany Ceramics (531548) Q4 25/26 earnings summary

Executive summary

• Domestic demand improved early in the year, but March was impacted by geopolitical disruptions, affecting exports and industry performance.

• Consolidated revenue grew 6% year-over-year in Q4 FY26 to INR 812 crore, with EBITDA margin improving to 11.4% from 8.2% in Q4 FY25, driven by cost management and improved product mix.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2026 were approved, with the audit report carrying an unmodified opinion.

• Price hikes were implemented to offset higher gas prices, supporting efficient customer service and market position.

• The Somany Max plant achieved breakeven, a significant improvement from a loss of INR 9 crores in the same quarter last year.

Financial highlights

• Q4 FY26 consolidated sales: INR 812 crore (up 6% YoY); FY26 sales: INR 2,771 crore (up 4.8% YoY).

• Q4 FY26 EBITDA: INR 92 crore (up 47.8% YoY); EBITDA margin: 11.4% (vs. 8.2% YoY).

• Standalone revenue from operations for FY26: Rs. 262,775 lakhs; consolidated: Rs. 277,051 lakhs.

• Standalone net profit for FY26: Rs. 9,907 lakhs; consolidated net profit: Rs. 7,407 lakhs.

• Cash and cash equivalents increased to Rs. 12,471 lakhs (standalone) and Rs. 12,833 lakhs (consolidated) as of March 31, 2026.

Outlook and guidance

• Guidance to improve EBITDA margins by at least 1.5% or more, assuming no further geopolitical shocks.

• Aggressive double-digit growth targets set for the coming year, with focus on sustainable, profitable growth through product mix improvement and higher capacity utilization.

• Board recommended a final dividend, reflecting confidence in ongoing performance.

• Investment in VTPL aims to enhance manufacturing capabilities and sustainability through solar power.

• Ongoing monitoring of demand, fuel costs, and pricing dynamics to ensure timely strategic actions.