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Somany Ceramics delivered a strong Q1FY27 performance

ICICIdirect Research 13 Aug 2026 DISCLAIMER

News: Somany Ceramics delivered a strong Q1FY27 performance, with consolidated revenue from operations rising 24% YoY to ₹750 crore, despite only a 2.8% YoY increase in tile volumes to 16.5 MSM, as supply disruptions in Morbi constrained volumes during early part of quarter. Tile revenue grew 23.7% YoY to ₹633 crore, primarily driven by a sharp 20.3% YoY increase in blended realisation to ₹384/sqm, following a 16–17% price hike to offset elevated natural gas costs and product mix. The stronger in-house contribution, pricing actions and better cost absorption helped consolidated EBITDA rise 78.9% YoY to ₹86 crore, with EBITDA margin expanding 353 bps to 11.5%. Reported PAT increased 242.7% YoY to ₹36 crore, aided by operating leverage and lower interest costs. 

View: Management remains constructive on the demand outlook, with FY27 tile volume growth guidance maintained at mid-single digit and consolidated operating margin expected to remain in double digits. The supply situation has improved as Morbi operations resumed, with outsourced vendors fully operational from June and Morbi reaching full capacity by mid-June. Importantly, the narrowing price gap between organised players and Morbi manufacturers following the latter’s sharper 30–35% price increases could support market-share gains for branded players. 

Impact: Positive

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