Somany Ceramics Limited has released the transcript of its earnings conference call for the fourth quarter and financial year ended March 31, 2026. The call, held on May 15, 2026, detailed the company's financial performance, operational highlights, and outlook for the industry amidst geopolitical challenges.

Financial Performance

The company reported a sales growth of 6% in Q4 FY26 and 5% for the entire financial year. EBITDA margins improved significantly, reaching 11.4% for the quarter and 9.3% for the full year. The Sanitaryware segment performed well, growing by 8% annually to reach INR 320 crores, up from INR 296 crores in the previous year.

Operational Highlights

Capacity utilization remained largely flat at approximately 79% for the year, though it improved to 82% in Q4. The Somany Max plant achieved a breakeven during the quarter, a significant improvement from a loss of INR 9 crores in the corresponding quarter of the previous year. The company also strengthened its distribution network by adding 200 net new dealers, taking the total dealer showrooms to about 3,100.

Working capital days improved, decreasing by 4 to 9 days, while debtor collection days reduced to 40 days from 51 days. The company's brand spend was maintained at 2% of sales for the year.

Industry Outlook and Guidance

Management noted that domestic demand saw a gradual improvement in January and February, though March was an aberration due to geopolitical factors. Gas prices increased significantly in March, impacting the industry. The company stated that organized players are gaining from the disruption as capacity in Morbi has shut down, leading to market consolidation.

For the upcoming year, the company provided guidance to improve EBITDA margins by at least 1.5% or more, assuming no further geopolitical shocks. The company is targeting double-digit growth in the sanitaryware and adhesive businesses, while tile volume growth is expected to be in decent single digits. Price hikes of approximately 16% to 17% have been implemented in tiles to offset input cost inflation.

The disclosure was signed by Anuj Kalia, Company Secretary & Compliance Officer, on May 20, 2026.

Somany Ceramics Limited delivered a resilient performance in Q4FY26, with consolidated revenue growing 6% year-on-year to INR 812 crore. Consolidated net profit for the quarter stood at INR 37 crore versus INR 19 crore in the same period last year. EBITDA came in at INR 92 crore against INR 62 crore YoY, with EBITDA margin at 11.4% compared to 8.2% in Q4FY25, driven by effective cost management, operational resilience, and an improved product mix. The company has since revised its investor presentation to correct a typographical error in the working capital data. The company maintained stable production levels despite external headwinds, including constraints in gas availability and a sharp increase in fuel costs from early March due to the US-Iran conflict, particularly impacting propane-dependent units in the Morbi cluster, supported by a diversified manufacturing footprint and uninterrupted operations across its North and South manufacturing facilities.

Q4FY26 Operational Highlights

Tiles production in Q4FY26 stood at 11.65 msm, comprising 6.42 msm from own plants and 5.23 msm from JVs. Capacity utilisation during the quarter was healthy across segments:

• 82% in tiles
• 83% in sanitaryware
• Optimum capacity in faucets

Total tiles volume grew 2% YoY in Q4FY26, as detailed below:

For the full year FY26, total tiles volume also grew 2% YoY to 72.11 msm from 70.85 msm in FY25.

Consolidated Financial Performance

The following table presents the consolidated Profit & Loss performance for Q4FY26 and FY26:

Standalone Financial Performance

On a standalone basis, Somany Ceramics also recorded meaningful improvement. Sales grew 0.9% YoY to INR 748 crore in Q4FY26, while EBITDA surged 35.8% to INR 63 crore, with EBITDA margin expanding to 8.5% from 6.3% in Q4FY25. Standalone PAT rose 31.7% YoY to INR 37 crore, with EPS of INR 9.15 for the quarter.

Sales Value Breakdown

Consolidated sales value for Q4FY26 and FY26 across categories is presented below:

For the full year, total consolidated sales value grew 5% to INR 2,770.51 crore in FY26 from INR 2,643.31 crore in FY25, with Bathware contributing INR 318.90 crore versus INR 295.76 crore in FY25.

Balance Sheet and Working Capital

The company's consolidated balance sheet reflects continued deleveraging. Total consolidated debt declined to INR 251 crore as of March 2026 from INR 302 crore in March 2025. Consolidated net debt reduced sharply to INR 105 crore from INR 225 crore, with the net debt-to-equity ratio improving to 0.12 from 0.29.

The revised investor presentation corrects the working capital figures. The updated consolidated working capital and net debt trend is presented below:

Consolidated Working Capital & Net Debt Trend (INR crore):

On a standalone basis, net debt improved further to INR -123 crore as of March 2026, with a net debt-to-equity ratio of -0.14, reflecting a net cash position.

Manufacturing Footprint and Capacity

As of March 31, 2026, Somany Ceramics operates Pan India manufacturing facilities across Punjab, Gujarat, Haryana, and Andhra Pradesh. Key capacity details include:

• Tiles capacity: ~75 msm p.a. (including dedicated outsource tie-ups)
• Sanitaryware capacity: 0.48 mn pcs p.a. (excluding outsource tie-ups)
• Bath fittings capacity: 1.30 mn pcs p.a. (excluding outsource tie-ups)

Shareholding Pattern

As of March 31, 2026, the shareholding pattern of Somany Ceramics stood as follows, with total equity shares of 4,10,12,806 of ₹2/- each:

The company's focus remains on driving sustainable and profitable growth through product-mix improvement, higher capacity utilisation, disciplined working-capital management, and stronger free cash flow generation.