Somany Ceramics Ltd.'s (SCL) Q2FY26 result was below our estimates on key parameters. The company reported muted sales volume as Northern markets were weak due to excess rains. Further, the domestic market witnessed higher sales volume being captured by local players due to a substantial price differential resulting from poor quality and high levels of tax/duty evasion. This high level of evasion was expected to go down post-GST, but has persisted. On a positive note, the industry's overall export pickup (up 7% based on five months of data) is significant because it means a lot of Morbi players will start re-exporting,...