Somany Ceramics Q1 FY27: Sales Up 3%, EBITDA Margins Boosted to 11.6%
Somany Ceramics reported Q1 FY27 sales growth of 3% and a value increase of 24%. EBITDA margins rose to 11.6% due to improved capacity utilization and operational efficiencies. The company is investing in a new 9 million sq. meter plant in the South, expecting ₹350 crores in revenue. Expansion of 4-5 million sq. meters in existing lines is also planned by Q4 FY27.
The results show improvement in key financial metrics like EBITDA margins and capacity utilization, along with strategic expansion plans, which are positive for the company's future performance.
The company reported positive results with improved EBITDA margins and confidence in future growth, despite some challenges like export decline and gas price volatility.
Somany Ceramics Limited announced its financial results for the first quarter of FY2026-27, reporting a moderate sales growth of 3%, while value grew by 24%. The company's EBITDA margins improved significantly by 3.6% to 11.6%, driven by enhanced operational efficiencies and improved capacity utilization in its plants and joint ventures.
Despite volatile gas prices, which saw an increase of 16% to 18%, the company successfully passed on these costs. Demand in May and June was decent, although July was impacted by rains. Exports saw a considerable decline of 50-60% due to geopolitical reasons. The company is expanding its capacity in the construction chemical space and has added significant capacity in the North, which is expected to contribute from this quarter onwards.
Somany Ceramics is investing in future growth with plans to set up a 9 million square meter plant in the South, with an estimated revenue potential of ₹350 crores, expected to be operational in 12-15 months. Additionally, 4 to 5 million square meters of capacity will be added in existing lines by Q4 FY27. The company's joint ventures have started performing well, contributing positively to the results.
Management expressed confidence in maintaining and improving EBITDA margins, attributing the gains to operational efficiencies and improved JV performance, rather than solely to price increases. The company expects mid-single-digit volume growth for the year and is targeting further margin improvements.
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