Somany Ceramics Q1 FY27 Results (NSE: SOMANYCERA)
Signal: Margin expansion
The read
The operating inflection strengthened: consolidated EBITDA grew 79.2% YoY versus revenue growth of 23.8%, lifting EBITDA margin 380bps to 12.1% and extending the margin expansion streak to three quarters; however, QoQ revenue fell 8.3% and PAT fell 8.5%, so the durability of the recovery still needs confirmation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹744.2 Cr | +23.8% | -8.3% |
| Net profit | ₹34.23 Cr | +365.3% | |
| EPS | ₹8.66 | +242.3% | |
| EBIT margin | 12.1% |
P&L walk
Consolidated revenue rose to ₹74,420 lakh, +23.8% YoY but -8.3% QoQ, while gross margin expanded to 54.3% from 52.0% and EBITDA margin rose to 12.1% from 8.3%; PAT increased to ₹3,423 lakh from ₹735 lakh, helped by operating improvement and a lower finance-cost burden.
Key positives
- Consolidated EBITDA grew 79.2% YoY to ₹8,975 lakh versus revenue growth of 23.8%, a +55.4pp growth gap, while EBITDA margin expanded 380bps to 12.1%.
- Gross margin expanded 234bps YoY to 54.3% as raw material cost declined to 20.2% of revenue from 22.7%; the filing does not disclose the underlying driver.
- Finance cost fell 10.1% YoY to ₹1,143 lakh, while employee cost grew 14.0% and depreciation grew 9.9%, both slower than revenue growth of 23.8%.
- Standalone EBITDA margin also improved 280bps YoY to 9.9%, indicating that the recovery was not solely attributable to subsidiaries.
Key concerns
- Consolidated revenue declined 8.3% QoQ to ₹74,420 lakh and PAT declined 8.5% QoQ to ₹3,423 lakh, requiring confirmation that the margin recovery persists through the next demand cycle.
- Revenue growth is not decomposed into volume and realisation, limiting assessment of whether the 23.8% YoY increase reflects sustainable volume growth or mix/pricing.
Research and educational content only. Not investment advice.