Somany Ceramics Ltd. share price target

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,...

One-offs led Weak Quarter; H2 to be better! About the stock: Somany Ceramics is the second largest tiles manufacturer in Riding on real estate strong cycle, the company has guided for mid to high single digit tiles volumes ahead in FY26. Q2FY26 Performance: Somany ceramics tile volumes were flat YoY at 17.8 MSM with tile revenues of 570.6, were up 0.4% YoY. The overall revenue was at 680.5 crore, was up 2.9% YoY. The EBITDA margins were subdued at 8.1%, down 72bps YoY, given the higher operating expenses. PAT stood at ~15 crore, down 12.6% YoY...

Somany Ceramics (SOMC) reported lower-than-expected (vs I-sec estimates) Q2FY26 consol. revenue growth of 2.8% YoY with tile volume flat YoY (6-year CAGR of 6%).

Somany Ceramics Ltd.'s (SCL) Q1FY26 result was broadly in-line with our estimates on key parameters. Market demand during Q1FY26 was impacted by lower sales in India. Exports also faced pressure in Q1 FY26. Further, sales of some low product mix items and old/deleted stock, which led to a reduction in realization, though a small price increase was implemented in July. The management guided that the focus is on innovation and better products to move up the value chain. New product launches are planned for September and after Diwali. Despite weak Q1, the management is not changing its guidance for...

Somany Ceramics (SOMC) reported Q1FY26 consol. revenue growth of 4.5% YoY with tile volume rising 3% YoY (6-year CAGR of 5.1%) while tile realisation was largely flat YoY (+1.2% QoQ).

In Q3FY25, Somany Ceramics (SOMC) reported consol. revenue growth of 5.3% YoY with tile volume growing 4.5% YoY (5-year CAGR of 5.1%) while tile realisation declined 0.9% YoY (flat QoQ).

Operating profit broadly in line in Q3; SOMC EBITDA margin was relatively stable in Q3 due to high GVT sales and Max plant ramp-up

Topline broadly in line; but EBITDA missed on margin contraction due to low absorption of fixed-cost overhead

In Q1FY25, Somany Ceramics (SOMC) reported consol. revenue decline of 1.4% YoY, as tiles volume declined 0.9% YoY (5-year CAGR of 5.5%). Consol. EBITDA margin decreased 16bps YoY/231bps QoQ to 8.5%.

Misses our revenue/EBITDA estimate by 2%/8% mainly due to lower-than-expected tiles volume

SIEM: Robust quarter, fresh capex announced. DIXON: Backward integration to fuel growth; maintain BUY. VSTT: Tepid performance; no major stress in the medium term. SOMC: Strong show in a challenging environment

In Q4FY24, Somany Ceramics (SOMC) reported consolidated revenue growth of 8.6% YoY driven by tile volume growth of 7.3% YoY (+19.9% QoQ; 3-year CAGR of 3.8%), but tile realisation declined 2.3% YoY (-1.2% QoQ).

Q3 EBITDA miss of 7% on tepid demand environment and rise in competitive intensity from Morbi players