Somany Ceramics

Somany Ceramics Limited reported quarterly growth of 3.6% despite significant challenges including flooding in northern territories and a 20-25 day outage at the Kassar plant due to GAIL pipeline leakage. The company's EBITDA stood at 7.9% for both H1 and Q2, down from 8.5% previously, with the plant outage impacting EBITDA by approximately 1.2%. Northern territories, which constitute 46-47% of tiles sales, were severely affected by floods in Uttarakhand and other regions. Capacity utilization remained at 75% due to the outage and muted demand. The company maintained its guidance for mid-to-high single-digit growth and expects 150 basis points EBITDA margin improvement. GVT sales increased 1% while ceramics sales declined 1%. The company added 119 net dealers in H1, bringing total dealers to approximately 3,000 and exclusive showrooms to 520. Joint ventures continue to report losses, with Max JV losing INR 7.5 crores in the quarter. Somany Ceramics standalone remains debt-free and made repayments of INR 18 crores in H1. Management expects double-digit margins in the next couple of quarters and projects GVT sales to reach 50% within 12-18 months.

Somany Ceramics Limited reported quarterly results for the period ended September 30, 2025, showing revenue from operations of Rs 65,563 lakhs compared to Rs 57,980 lakhs in the previous quarter. Net profit for the quarter stood at Rs 2,253 lakhs versus Rs 1,676 lakhs in the prior quarter. The company's Board approved a draft scheme of amalgamation to merge three wholly-owned subsidiaries - Somany Bathware Limited, Somany Excel Vitrified Private Limited, and SR Continental Limited - with the parent company. The merger aims to achieve business synergy, reduce operational overheads, eliminate duplicate compliance requirements, and enhance shareholder value. No cash consideration or share exchange will occur as these are wholly-owned subsidiaries. The scheme requires statutory and regulatory approvals including from the National Company Law Tribunal. During the quarter, manufacturing operations at the Kassar Plant in Haryana were temporarily impacted due to gas supply disruption from August 16 to September 20, 2025, following a pipeline leakage incident.

Somany Ceramics reported Q2 consolidated net profit of 150 million rupees compared to 172 million rupees in the same period last year. Revenue increased to 6.8 billion rupees from 6.62 billion rupees year-over-year. EBITDA declined to 535 million rupees from 560 million rupees, while EBITDA margin compressed to 7.86% from 8.47% in the previous year.