Somany Ceramics shareholders approved a final dividend of ₹2 per equity share of face value ₹2 each (100% payout) for the financial year ended March 31, 2026, at the company’s 58th annual general meeting (AGM). The meeting, held via video conferencing on August 12, 2026, also witnessed the adoption of audited standalone and consolidated financial statements for FY26.

Mr Shreekant Somany, Chairman & Managing Director, presided over the proceedings. Mr Abhishek Somany, Managing Director & Chief Executive Officer, addressed member queries regarding the company’s performance during FY25-26. The Company Secretary confirmed that statutory and secretarial auditors had reported no qualification remarks in their respective reports.

Key Resolutions Passed

Shareholders voted on four ordinary resolutions during the AGM:

Mr Akshit Kumar Jangid, Partner at Pinchaa & Co., served as the scrutinizer for the e-voting process. The consolidated voting results and scrutinizer’s report were filed with stock exchanges and made available on the company’s website and CDSL portal.

The AGM concluded at 10:49 am after a 15-minute e-voting window for members who had not cast their votes remotely prior to the meeting.

Somany Ceramics Limited reported a sharp recovery in profitability for Q1FY27, with consolidated profit after tax (PAT) attributable to controlling interest jumping 242.7% year-on-year to ₹36 crore from ₹10 crore in the corresponding quarter of FY26. The strong bottom-line performance was underpinned by a 23.7% growth in consolidated sales to ₹744 crore and an expansion in EBITDA margin to 11.6% from 8.0%, reflecting improved product mix and operational efficiencies despite industry-wide supply constraints.

The quarter saw supply-side disruptions in the Morbi cluster due to fuel shortages, labour unavailability, and elevated gas prices, which curtailed production across the industry. However, Somany Ceramics mitigated these challenges through better realizations and a favourable product mix. Standalone PAT also more than doubled, rising 109.5% to ₹35 crore from ₹17 crore, while standalone EBITDA grew 72.5% to ₹61 crore.

Financial Performance Highlights

Consolidated revenue from operations reached ₹744 crore in Q1FY27, up from ₹601 crore in Q1FY26. EBITDA expanded significantly to ₹86 crore from ₹48 crore, with the margin improving by 3.6 percentage points to 11.6%. Profit before tax (PBT) surged 337.1% to ₹50 crore from ₹11 crore, aided by lower tax expenses relative to income.

Operational Metrics and Capacity

Total tiles volume increased by 3% to 16.46 million square meters (msm) from 16.01 msm in Q1FY26. Own manufacturing contribution rose sharply to 6.67 msm from 5.46 msm, while joint venture (JV) production grew to 4.82 msm from 4.49 msm. Outsourced tiles declined to 4.97 msm from 6.06 msm, indicating a strategic shift towards higher-margin own-manufactured and JV products.

Capacity utilization stood at 80% for tiles (83% at standalone), 77% for sanitaryware, and 95% for faucets. The company’s total tiles capacity is approximately 80 msm per annum, including dedicated outsource tie-ups. Sanitaryware capacity is 0.48 million pieces per annum, and bath fittings capacity is 1.30 million pieces per annum.

Strategic Expansion and Balance Sheet

To address growing demand in the Southern market, Somany Ceramics announced a new manufacturing facility with an annual capacity of approximately 9 million+ sqm of Glazed Vitrified Tiles. This expansion aligns with the company’s focus on market share gains and product premiumization.

The balance sheet showed improved liquidity positions. Consolidated net debt decreased slightly to ₹107 crore from ₹105 crore in March 2026, maintaining a low net debt-to-equity ratio of 0.12. Standalone net debt remained negative at -₹115 crore, indicating a cash-rich position. Working capital days improved to 0 days at standalone level from -4 days in March 2026, while consolidated working capital days stood at 12 days.

What the Numbers Show

The divergence between standalone and consolidated margins highlights the value addition from joint ventures. While standalone EBITDA margin expanded to 8.8% from 6.1%, consolidated margins reached 11.6%, suggesting that JV operations are contributing disproportionately to profitability. This structural shift, combined with reduced reliance on outsourced tiles (down from 38% to 30% of volume mix), indicates a successful strategy to internalize high-margin production. The significant surge in PBT (337%) outpacing revenue growth (24%) underscores substantial operating leverage achieved through fixed cost absorption and mix optimization.