Somany Ceramics Ltd. share price target

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

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

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%.

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

Somany Ceramics (SOMC) reported Q1FY24 consolidated revenue growth of 4.9% YoY driven by tile vol growth of 8.1% YoY (4-year CAGR of 6.7%), while tile realisation declined 2.2 % YoY (flat QoQ). Consol EBITDA margin increased 59bps YoY (-35bps QoQ) to 8.6% primarily due to lower RM costs (down 97bps YoY, including power and fuel cost), resulting in EBITDA growth of 12.6% YoY while APAT declined 4.4% YoY (due to higher interest cost).

Somany Ceramics (SOMC) reported in line Q4FY23 consolidated revenue growth of 10.1% YoY (4-year CAGR of 7.0%) driven by tile volume growth of 9.2% YoY (4-year CAGR of 3.4%), while tile realisation remained flat YoY (-1.4% QoQ).