Somany Ceramics Reports Q2 Growth, Approves Merger of Three Subsidiaries

Somany Ceramics Limited , a leading player in the ceramic tiles and allied products industry, has reported a resilient performance for the second quarter of fiscal year 2026, despite challenging market conditions. The company also announced plans to consolidate its business structure through a strategic merger of its wholly-owned subsidiaries.

Financial Highlights

For the quarter ended September 30, 2025, Somany Ceramics posted consolidated revenue from operations of ₹681.00 crores, marking a 2.9% increase from ₹662.00 crores in the same quarter last year. The company's consolidated net profit attributable to owners stood at ₹15.00 crores, compared to ₹17.00 crores in Q2 FY2025.

Key financial metrics for Q2 FY2026 (consolidated):

Metric	Q2 FY2026	Q2 FY2025	YoY Change
Revenue from Operations	₹681.00 crores	₹662.00 crores	+2.9%
EBITDA	₹54.00 crores	₹56.00 crores	-4.4%
EBITDA Margin	7.9%	8.5%	-60 bps
Net Profit (Owners)	₹15.00 crores	₹17.00 crores	-12.6%
EPS (Diluted)	₹3.65	₹4.18	-12.9%

Operational Performance

The company reported a total tiles sales volume of 17.80 million square meters (msm) for Q2 FY2026, maintaining a steady performance compared to 17.81 msm in the same period last year. The sales mix comprised 27% from own manufacturing, 32% from joint ventures, and 41% from other sources.

Somany Ceramics maintained a strong capacity utilization rate of 75% in tiles and 74% in sanitaryware during the quarter, demonstrating operational efficiency despite market challenges.

Merger of Subsidiaries

In a significant move to streamline operations and enhance business synergies, Somany Ceramics' Board of Directors approved a draft scheme to merge three wholly-owned subsidiaries:

Somany Bathware Limited
Somany Excel Vitrified Private Limited
SR Continental Limited

The proposed amalgamation aims to consolidate the trading activities of these subsidiaries with the parent company, potentially leading to improved operational efficiency, reduced overheads, and simplified regulatory compliance.

Challenges and Outlook

Shreekant Somany, Chairman and Managing Director, commented on the quarter's performance, stating, "The anticipated recovery in domestic demand is yet to materialize. However, despite the continued softness in the overall market, the Company delivered a resilient performance."

The company faced a temporary disruption due to an unexpected gas shutdown at its North India facility. However, Somany Ceramics maintained its operating margins on a sequential basis, supported by ongoing cost-optimization initiatives.

Looking ahead, the company remains optimistic about the second half of the fiscal year. Recent macroeconomic trends, including improved consumer sentiment, easing inflation, and early signs of recovery in discretionary spending, coupled with government initiatives in housing and infrastructure, are expected to create a more supportive business environment for the industry.

With a strong balance sheet and an agile operating model, Somany Ceramics is well-positioned to capitalize on emerging growth opportunities while continuing to drive operational excellence.

As the company moves forward with its consolidation plans and navigates the evolving market landscape, investors and industry observers will be watching closely to see how these strategic moves translate into long-term value creation for Somany Ceramics.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.72%	-2.72%	-6.27%	-9.36%	-42.27%	+38.88%

Somany Ceramics , a leading player in the Indian ceramics industry, has reported mixed results for the second quarter. The company saw a modest increase in revenue but experienced a decline in profitability, reflecting the challenging market conditions in the sector.

Revenue Growth Amid Challenges

For Q2, Somany Ceramics reported consolidated revenue of 6.80 billion rupees, up from 6.62 billion rupees in the same period last year, marking a 2.7% year-over-year increase. This growth comes despite what the company described as "continued softness in the overall market."

Profitability Under Pressure

Despite the revenue growth, the company's profitability metrics showed a downward trend:

Metric	Q2	Q2 Previous Year	YoY Change
Net Profit	150.00 million rupees	172.00 million rupees	-12.8%
EBITDA	535.00 million rupees	560.00 million rupees	-4.5%
EBITDA Margin	7.86%	8.47%	-61 bps

The decline in profitability can be attributed to various factors, including market challenges and potential cost pressures.

Operational Highlights

Somany Ceramics maintained its operating margins on a sequential basis, supported by ongoing cost-optimization initiatives. However, the company faced a temporary disruption due to an unexpected gas shutdown at its North India facility, which may have impacted its overall performance.

Market Outlook

The company remains cautiously optimistic about the future, citing recent macroeconomic trends that could potentially boost demand. These include:

Pickup in consumer sentiment
Easing inflation
Early signs of recovery in discretionary spending
Government initiatives in housing, infrastructure, and urban development
Uptake in exports

Somany Ceramics believes these factors may create a more supportive business environment for the industry in the second half of the year.

Strategic Positioning

The company emphasized its strong balance sheet, focused execution, and agile operating model as key strengths that position it well to potentially capitalize on emerging growth opportunities while continuing to drive operational excellence.

As the ceramics industry navigates through a challenging period, Somany Ceramics' ability to grow revenue while maintaining operational efficiency will be crucial. The company's focus on cost optimization and its readiness to leverage potential market improvements could be key factors in its performance in the coming quarters.

Investors and market watchers will likely keep a close eye on how Somany Ceramics manages to balance growth aspirations with profitability in the evolving market landscape.