Somany Ceramics Limited delivered a resilient performance in FY 2025-26 despite a challenging operating environment marked by geopolitical tensions, energy cost pressures, and subdued demand in the first half of the year. The Company's consolidated revenue from operations grew 4.9% to ₹2,78,984 Lakhs, while the net profit attributable to controlling interest rose sharply to ₹8,119 Lakhs from ₹6,007 Lakhs in FY 2024-25. The Company's 58th Annual General Meeting is scheduled for 12 August, 2026 through Video Conferencing/Other Audio Visual Means.

Consolidated Financial Performance

The Company's consolidated financials for FY 2025-26 reflected broad-based improvement across key metrics. The following table summarises the consolidated performance:

Consolidated total expenses increased by 4.1% from ₹2,58,057 Lakhs in FY 2024-25 to ₹2,68,730 Lakhs in FY 2025-26. Material costs, constituting 50.7% of revenues, rose 9.1% from ₹1,30,135 Lakhs to ₹1,41,991 Lakhs. Power and fuel costs declined 6.3% from ₹50,225 Lakhs to ₹47,079 Lakhs, reflecting the Company's energy efficiency initiatives. Employee expenses, accounting for 12.9% of revenues, increased 1.6% from ₹35,474 Lakhs to ₹36,056 Lakhs.

Consolidated Balance Sheet Highlights

As of 31 March, 2026, the Company's consolidated capital employed increased from ₹1,17,193 Lakhs in FY 2024-25 to ₹1,19,392 Lakhs. Net worth rose from ₹77,166 Lakhs to ₹84,238 Lakhs. Long-term debt decreased by 23.1% to ₹11,451 Lakhs, and the long-term debt-equity ratio stood at 0.14x. The gross block, inclusive of CWIP, increased 8.2% to ₹1,56,873 Lakhs. The net debt-equity ratio improved to 0.30x, with net debt at ₹10,530 Lakhs.

Standalone Financial Review

On a standalone basis, revenue from operations grew 2.8% to ₹2,64,030 Lakhs from ₹2,56,942 Lakhs in FY 2024-25. The EBITDA margin improved by 160 basis points, from 5.4% in FY 2024-25 to 7.0% in FY 2025-26. The net profit margin increased by 50 basis points, from 3.3% to 3.8%. Standalone net worth increased to ₹89,073 Lakhs from ₹80,028 Lakhs. The Profit before Depreciation, Interest, Tax and Exceptional items stood at ₹21,086.78 Lakhs, while Profit after Tax was ₹9,909.38 Lakhs.

Standalone current assets increased by 0.1% to ₹65,788 Lakhs. Inventory increased 12.0% to ₹21,372 Lakhs, with the inventory turnover cycle rising to 30 days from 27 days. The debtors' turnover cycle improved from 51 days to 38 days, with debtors at ₹27,003 Lakhs compared to ₹35,628 Lakhs in FY 2024-25.

Strategic Expansion: Acquisition of Dura Build Care

A key strategic milestone during FY 2025-26 was the acquisition of a 51% equity stake in Dura Build Care Private Limited (DBCPL) for ₹1,030 Lakhs on 15 July, 2025, marking the Company's entry into the construction chemicals and waterproofing segment.

Dura Build Care's product portfolio spans high-performance waterproofing systems, advanced concrete admixtures, specialized tile adhesives, protective architectural coatings, non-shrink grouts, structural sealants, and technical repair mortars. The acquired business contributed net revenue of ₹743.38 Lakhs and a loss of ₹42.38 Lakhs to the Group's results from the date of acquisition.

Manufacturing Capacity and Market Presence

Somany Ceramics operates 10 manufacturing plants across India with a total installed tile capacity of 56.59 million square metres (msm) per annum. The Company's access to tile capacity stood at approximately 75 msm, comprising 31.65 msm from its own plants, 25 msm from subsidiaries and associates, and approximately 18 msm through outsourcing arrangements. In the Bathware segment, installed capacity stood at 0.48 million pieces per annum of sanitaryware and 1.30 million pieces per annum of bath fittings.

Domestically, the distribution network reached 3,061 active dealers and 533 exclusive franchise showrooms across India. Internationally, the Company serves customers across 62 countries spanning six continents. During FY 2025-26, 47 new showrooms were inaugurated, covering an aggregate area of approximately 92,000 sq. ft.

Dividend and Corporate Actions

The Board of Directors recommended a total dividend of ₹6 per equity share of face value ₹2 each for FY 2025-26, representing a payout ratio of 24.83% compared to 14.36% in the previous year.

The record date for the final dividend is Wednesday, 5 August, 2026. During FY 2025-26, the Company also invested ₹3,000 Lakhs in Somany Max Private Limited, increasing its equity shareholding from 80.00% to 85.71%, and ₹300 Lakhs in Sudha Somany Ceramics Private Limited. The Board also approved a Scheme of Amalgamation of wholly-owned subsidiaries Somany Bathware Limited, Somany Excel Vitrified Private Limited, and SR Continental Limited with and into the Company, with an appointed date of 1 April, 2025, subject to requisite approvals.

Five-Year Financial Snapshot

The following table presents the Company's consolidated five-year financial performance:

The Company's market capitalisation as of 31 March, 2026 stood at ₹1,46,436 Lakhs. The 3-year sales CAGR stood at 4.0%, and operating cash flow increased from ₹14,117 Lakhs in FY 2024-25 to ₹24,676 Lakhs in FY 2025-26, primarily driven by changes in working capital.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE355A01028/1c64b6d3-0868-4101-88ae-023461ec483e.pdf

Somany Ceramics has filed its Business Responsibility and Sustainability Report for FY26 with BSE and NSE, outlining its performance on environmental, social, and governance parameters. The filing, submitted by Company Secretary Anuj Kalia, confirms the company's adherence to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report highlights the company's commitment to sustainability through initiatives like Zero Liquid Discharge (ZLD) systems and the integration of renewable energy sources.

Environmental Stewardship

The company identified water conservation and energy management as key material issues. Both Kadi and Kassar facilities operate as ZLD units, treating and reusing 100% of wastewater through three effluent treatment plants. To support water management, the company secured an Annual Canal Water Agreement and obtained a No Objection Certificate from the Central Ground Water Authority. In terms of energy, the company secured an additional 9.9 MWp solar capacity for the Kassar plant and utilizes biofuels to reduce reliance on conventional sources. The report notes a rise in Scope 1 emissions to 79,331.00 metric tonnes of CO2 equivalent in FY26 from 61,379.38 metric tonnes in the previous year.

Social Performance

The company reported a workforce of 1,739 employees and 2,624 workers as of the end of FY26. Permanent employees totaled 1,443, while permanent workers numbered 558. The report indicates that 100% of permanent employees and workers are covered by health and accident insurance. Safety metrics showed a Lost Time Injury Frequency Rate (LTIFR) of 0.3 for employees and 1.5 for workers per million person hours worked. The company recorded one employee fatality during the financial year.

Governance and Oversight

The Risk Management Committee, chaired by Managing Director & CEO Abhishek Somany, oversees the implementation of sustainability policies. The report confirms that the company has policies covering all nine principles of the National Guidelines on Responsible Business Conduct (NGRBC). It also details the company's subsidiary structure, including the acquisition of a 51% stake in Dura Build Care Private Limited in July 2025. The report states there were no monetary penalties or fines imposed by regulatory bodies during the year.