Somany Ceramics Q2 FY27 Results (NSE: SOMANYCERA)
Signal: Margin expansion
The read
The key inflection remains the fourth consecutive quarter of YoY margin expansion: consolidated EBITDA margin improved to about 11.4% from 7.8% and gross margin to 54.9% from 47.3%, but revenue growth decelerated to 11.0% from 24.2% in Q1FY27 and operating cash flow fell 49.4% YoY to ₹5,203 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹860.65 Cr | +11.0% | +14.8% |
| EBIT | ₹70.35 Cr | +158.5% | |
| Net profit | ₹40.34 Cr | +227.6% | |
| EPS | ₹10.12 | +177.3% | |
| EBIT margin | 11.4% |
P&L walk
Consolidated revenue increased to ₹86,065 lakh, +11.0% YoY and +14.8% QoQ, while gross margin expanded to 54.9% from 47.3%; EBITDA margin improved to about 11.4% from 7.8%, but PAT also benefited from the stronger operating base despite a ₹237 lakh exceptional charge.
Segments
The group result was dragged below standalone profit: standalone PAT was ₹4,172 lakh versus consolidated net profit of ₹4,034 lakh, while consolidated disclosures show three subsidiaries generated a combined ₹20 lakh quarterly loss after tax.
Key positives
- Consolidated gross margin expanded 755bps YoY to 54.9%, with raw material and purchase costs broadly stable at 51.3% of revenue; the filing does not disclose whether this reflects pricing or mix.
- Estimated EBITDA increased about 83.8% YoY to ₹9,835 lakh versus revenue growth of 11.0%, lifting EBITDA margin to about 11.4% from 7.8%.
- Finance costs declined 7.5% YoY to ₹1,141 lakh, supporting the improvement in consolidated PAT to ₹4,034 lakh from ₹1,231 lakh.
- Diluted EPS rose 177.3% YoY to ₹10.12, broadly tracking the 176.8% growth in PAT attributable to owners.
Key concerns
- Revenue growth decelerated from 24.2% YoY in Q1FY27 to 11.0% in Q2FY27, despite 14.8% sequential growth.
- Operating cash flow fell 49.4% YoY to ₹5,203 lakh, materially lagging the ₹4,034 lakh reported consolidated PAT.
- Consolidated net profit of ₹4,034 lakh remained below standalone PAT of ₹4,172 lakh, with subsidiaries collectively including three loss-making entities that reported a ₹20 lakh quarterly net loss.
- The company approved a cash acquisition of up to 25% additional equity in related-party subsidiary Somany Sanitary Ware Private Limited, increasing ownership from 51% to up to 76%; the purchase price will be disclosed later.
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