Sonam Limited FY26 Revenue Surges 64% to ₹171 Cr; Eyes 25-30% Growth in FY27
Sonam Limited reported a 64.21% revenue increase to ₹171 crore in FY26, with PAT rising 15.63% to ₹732 lakh. The company projects 25-30% growth in FY27, focusing on premium products and expanding distribution. Debtors reduced to ₹6.73 crore. Management cited raw material costs for margin pressure but expects improvement.
The substantial revenue growth, clear future growth projections, and strategic focus on market expansion and product portfolio enhancement are material developments for investors.
The company reported significant revenue growth and provided a positive outlook for the next fiscal year, indicating strong business performance and future potential.
Sonam Limited announced its audited financial results for the quarter and year ended March 31, 2026, during an analyst meet held on June 1, 2026. The company reported a significant year-on-year revenue increase of 64.21% to ₹171 crore for FY26. EBITDA stood at ₹1509 lakh, a growth of 12.31%, and profit after tax rose by 15.63% to ₹732 lakh. The reported EBITDA margin was 8.79% and the PAT margin was 4.26%.
During the fiscal year, Sonam Limited focused on strengthening its market presence across India by expanding its distributor network. The company plans to introduce a wider range of innovative clocks, particularly in the premium category, and further enhance its distribution ecosystem in underpenetrated regions. The management expressed optimism about future growth opportunities, aiming for a 25% to 30% growth in FY27. They also noted an increase in the average selling price range, shifting focus from volume to value.
Regarding profitability, the management attributed margin pressure in FY26 to increased raw material costs and geopolitical situations. However, they anticipate year-on-year margin improvement in the coming years, though not necessarily percentage-wise as revenue grows. Capacity utilization is currently at 50% to 60%. The company's debtors reduced to ₹6.73 crore in FY26 from ₹10 crore in FY25. The working capital cycle for debtors is 29 days and for creditors is 37 days. Sonam Limited is also expanding its presence on online platforms like Amazon, Flipkart, and Myntra, with a trial phase to assess market response for wall clocks.
The company is actively managing its working capital, with a significant portion of business conducted on advance payments (70% to 80%). Despite geopolitical challenges impacting export demand and logistics, particularly from Iraq, the company expects its strong cash flow and market presence to mitigate major effects on its working capital cycle. The company is exploring strategies to increase market share on online platforms, including a phased approach for wall clock sales due to potential damage during transit.
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SONAM LIMITED filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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