Somany Ceramics Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Somany Ceramics Ltd filed with BSE on 20 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Somany Ceramics reported Q4 FY26 sales growth of about 6% and full-year FY26 growth of about 5%, with EBITDA margin at 11.4% in Q4 and 9.3% for the year. Management described a gas price shock following the geopolitical conflict beginning around 9th March, which disrupted supply in Morbi and forced price increases of 15-17% in tiles and about 8% in sanitaryware and bathware. The company also reported that its Somany Max plant reduced losses from Rs 27 crores to Rs 21 crores year-on-year and nearly reached breakeven in Q4.
Numbers mentioned
Sales growth: 6% (Q4 FY26)
p. 3
“sales growth has been about 6% in Q4 and 5% for the entire year, slightly better than last year”
Abhishek Somany, page 3 of the filed PDF · View the filing
EBITDA margin: 11.4% (Q4 FY26)
p. 3
“EBITDA for the year is 9.3% and for the quarter was 11.4%.”
Abhishek Somany, page 3 of the filed PDF · View the filing
EBITDA margin: 9.3% (FY26)
p. 3
“EBITDA for the year is 9.3% and for the quarter was 11.4%.”
Abhishek Somany, page 3 of the filed PDF · View the filing
Capacity utilization: 79% (FY26)
p. 3
“Capacity utilization was largely flat from approximately 80% to 79%.”
Abhishek Somany, page 3 of the filed PDF · View the filing
Sanitaryware sales: INR320 crores (FY26)
p. 4
“we have closed the figure at INR320 crores, up from INR296 crores”
Abhishek Somany, page 4 of the filed PDF · View the filing
Net dealer additions: 200 dealers (FY26)
p. 4
“We've added net new additions of 200 dealers across India, taking the total dealer showrooms to about 3,100.”
Abhishek Somany, page 4 of the filed PDF · View the filing
Debtor days: 40 days (FY26)
p. 4
“We have -- that particular figure is at 40 days, down from 51 days and 38 on a stand-alone basis.”
Abhishek Somany, page 4 of the filed PDF · View the filing
Somany Max loss: INR21 crores (FY26)
p. 11
“it was INR27 crores last to last year, and it went down to INR21 crores”
Abhishek Somany, page 11 of the filed PDF · View the filing
Morbi gas price: INR74 plus 6% (May)
p. 7
“the Morbi pricing is currently -- for May, the pricing is INR74 plus 6% ballpark”
Abhishek Somany, page 7 of the filed PDF · View the filing
Outsourced sales share: 35%, 36% (current)
p. 14
“but anyway, with that, the outsourced sales is about 35%, 36%”
Abhishek Somany, page 14 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — at least 1.5% or more · FY27
stated conditionally by Abhishek Somany
p. 4
“our guidance is to improve EBITDA margin from here by at least 1.5% or more”
Abhishek Somany, page 4 of the filed PDF · View the filing
Revenue growth — 20% to 25% · FY27
stated conditionally by Abhishek Somany
p. 10
“If the prices remain at current levels, then anywhere between 20% and 25% would be the revenue growth.”
Abhishek Somany, page 10 of the filed PDF · View the filing
Tile volume growth — decent single-digit growth · FY27
stated as an aspiration by Abhishek Somany
p. 7
“we should be able to get a decent single-digit growth in terms of volume”
Abhishek Somany, page 7 of the filed PDF · View the filing
Sanitaryware and adhesive growth — very healthy double digits · FY27
stated as an aspiration by Abhishek Somany
p. 7
“For the sanitaryware and adhesive business would be in very healthy double digits.”
Abhishek Somany, page 7 of the filed PDF · View the filing
Capex — INR70 crores, INR80 crores · FY27
stated firmly by Abhishek Somany
p. 15
“everything will be contained in the INR70 crores, INR80 crores of routine capex and balancing equipment to make our assets more value-added”
Abhishek Somany, page 15 of the filed PDF · View the filing
Somany Max profitability — positive · next year
stated as an aspiration by Abhishek Somany
p. 12
“if not next year, next year, it will be in positive.”
Abhishek Somany, page 12 of the filed PDF · View the filing
EBITDA margin — 150 bps plus · FY27
stated conditionally by Abhishek Somany
p. 16
“Yes, 150 bps plus.”
Abhishek Somany, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said receivable days should stay around the same level and expects continued control, though sustainability depends on demand response to price increases.
Answered by Abhishek Somany
Asked by Sneha Talreja: How sustainable is the improvement in receivable days and working capital?
p. 5
“we hope that receivable days remain around the same area. It may increase a day or 2, but we would want to manage it in the same area.”
Abhishek Somany, page 5 of the filed PDF · View the filing
Management gave average gas prices by region for FY25 and FY26, noting they were largely flat until the March spike.
Answered by Abhishek Somany
Asked by Sneha Talreja: What were the gas prices in North, South and West for Q4 versus current?
p. 6
“if I see the whole year pricing, it was INR43 from FY25 for the North, it went up to INR45. For the West, it was INR48 and INR48. For the South, it was INR51 and INR51.”
Abhishek Somany, page 6 of the filed PDF · View the filing
Management said tile prices had fallen 15-20% over the prior two years, so current price increases only bring prices back to historic levels, and does not foresee unviability absent an extreme oil price shock.
Answered by Abhishek Somany
Asked by Dhvaneet Savla: Is there a tipping point where rising gas costs make running the factory unviable?
p. 7
“today, even after the price increase, we are pretty much at the historic price, which was there 2 years ago.”
Abhishek Somany, page 7 of the filed PDF · View the filing
Management said about 60-65% of Morbi was running currently and expected around 85% by month end, with 10-15% possibly never restarting.
Answered by Abhishek Somany
Asked by Shruti Mulchandani: What is the status of Morbi plants restarting on gas supply since May 1?
p. 8
“approximately 60%, 65% of Morbi is up and running. And I believe by the end of this month, it would -- the number would reach about 85%.”
Abhishek Somany, page 8 of the filed PDF · View the filing
Management clarified guidance was for margin improvement of 150 bps and more from the 9.3% base, not low-to-mid teens.
Answered by Abhishek Somany
Asked by Keshav Garg: Would margins improve to low-to-mid teens given the price hikes?
p. 10
“I'm talking about margin improvement from the 9.8% -- 9.3% base to improve it by 150 bps and more.”
Abhishek Somany, page 10 of the filed PDF · View the filing
Management said a SEBI embargo related to subsidiary consolidation prevents a buyback for the next 6-8 months.
Answered by Abhishek Somany
Asked by Keshav Garg: Given the strong balance sheet, would the company consider a share buyback?
p. 10
“there is an embargo on -- from SEBI. We can't do a share buyback for the next 6, 8 months.”
Abhishek Somany, page 10 of the filed PDF · View the filing
Management cited reduced material availability from shut Morbi plants, a 15-17% price increase requiring consumer absorption time, and dealers destocking cautiously.
Answered by Abhishek Somany
Asked by Keshav Lahoti: Why was April volume growth slow despite Morbi being shut?
p. 10
“we did not get quite a large portion of our material, which we normally would have got from Morbi because those plants were shut.”
Abhishek Somany, page 10 of the filed PDF · View the filing
Management quantified gas-related input cost increases and said transportation cost impact from fuel price rises was not yet quantifiable.
Answered by Abhishek Somany
Asked by Karan: What inflation is expected in packaging, logistics, transportation and employee costs?
p. 15
“currently, the gas impact is approximately INR5.5 to INR6 and the other input cost is between INR1, INR1.5.”
Abhishek Somany, page 15 of the filed PDF · View the filing
Management said current South gas pricing is INR78 per standard cubic meter but a new long-term contract starting next month would bring it down significantly.
Answered by Abhishek Somany
Asked by Anubhav Goel: What is the current gas pricing for the South unit and outlook?
p. 16
“Gas pricing current is INR78 a standard cubic meter, but we have from next month contracted a long-term contract, so that will go down very significantly.”
Abhishek Somany, page 16 of the filed PDF · View the filing
Risks flagged
Geopolitical conflict disrupting exports and gas supply
p. 3
“Obviously, March was a very aberration month because of the various circumstances which played out geopolitically.”
Abhishek Somany, page 3 of the filed PDF · View the filing
Sharp increase in gas prices
p. 3
“Gas price, as you all know, has increased very significantly, which we can talk about that.”
Abhishek Somany, page 3 of the filed PDF · View the filing
Labor shortage affecting Morbi plant restarts
p. 8
“There a major, major, major labor shortage in Morbi.”
Abhishek Somany, page 8 of the filed PDF · View the filing
Weak demand due to consumer caution and price hikes
p. 9
“Demand is weak currently. Like I mentioned earlier in the call that people are waiting.”
Abhishek Somany, page 9 of the filed PDF · View the filing
Possible plant shutdowns due to stock buildup
p. 9
“In fact, as far as we are concerned also, maybe a couple of our plants we may have to shut down due to stock.”
Abhishek Somany, page 9 of the filed PDF · View the filing
Uncertainty over transportation cost increases from rising fuel prices
p. 15
“Any other input costs, which is related to transportation is yet to be seen because petrol diesel just went up today.”
Abhishek Somany, page 15 of the filed PDF · View the filing
Potential extreme oil price escalation threatening factory viability
p. 8
“the doomsday war doesn't come up, like if oil jumps up to a $200 or something like that, that I can't envisage”
Abhishek Somany, page 8 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.