Somany Ceramics Q4 FY26 profit up 77% as sales rise 6%

Key takeaway: profit growth outpaces revenue

Somany Ceramics reported a sharp rise in profitability in the quarter ended March 2026, with net profit growing much faster than revenue. The company’s quarterly net profit rose 77.23% year-on-year to ₹37.82 crore, compared with ₹21.34 crore in the quarter ended March 2025. Revenue for the same quarter increased 6.02% to ₹811.97 crore from ₹765.86 crore.

The FY26 performance also improved on a year-on-year basis. Net profit rose 35.16% to ₹81.19 crore for the year ended March 2026, compared with ₹60.07 crore in FY25. Annual sales rose 4.81% to ₹2,770.51 crore from ₹2,643.31 crore.

Q4 FY26 numbers: revenue at ₹811.97 crore

In Q4 FY26, Somany Ceramics delivered revenue of ₹811.97 crore, up 6.02% from ₹765.86 crore in Q4 FY25. The profit increase was more pronounced, with PAT at ₹37.82 crore versus ₹21.34 crore a year earlier.

The quarter’s performance comes after management commentary through FY26 about a gradual improvement in domestic demand conditions. On the company’s earnings conference call for Q3 FY26 (quarter ended December 2025), management said domestic demand saw a gradual improvement, helped by easing pressure from exports and an uptick in tile demand as buildings reached completion stages.

FY26 performance: profit grows 35% on 5% sales rise

For the full year ended March 2026, Somany Ceramics posted sales of ₹2,770.51 crore, up 4.81% from ₹2,643.31 crore in FY25. Net profit increased 35.16% to ₹81.19 crore versus ₹60.07 crore.

The difference between revenue growth and profit growth suggests improved operating outcomes through the year, though the dataset provided does not include a full FY26 margin bridge. Still, management had flagged margin improvement initiatives across cost and product mix during FY26, particularly in its Q3 call.

What management said in Q3 FY26: margins and mix

In the Q3 FY26 earnings call held on January 28, 2026, Somany Ceramics reported consolidated sales of ₹677 crore, a 6% year-on-year increase. EBITDA increased 16% to ₹62 crore, with an EBITDA margin of 9.2% (an improvement of 80 basis points year-on-year, as stated in the transcript summary). PBT rose 28% to ₹25 crore, while PAT doubled from ₹9 crore to ₹18 crore.

Management said gross margins improved in Q3, and also noted that gas prices were largely stable, with expectations of continued stability. The company also discussed product and segment trends, including strong growth in the adhesive and waterproofing vertical (35%). Tiles remained the largest business segment, contributing 83.5% of overall business in Q3 FY26.

Capacity utilisation, JV losses, and the Somany Max update

A key operational point through FY26 has been the performance of the Somany Max joint venture. In the call, management said JV losses were primarily on account of Somany Max, linked to lower capacity utilisation, but added that steps to control losses had been augmented.

The CFO indicated that losses of around ₹7.5 crore in the previous two quarters had reduced to ₹6 crore due to improvement in capacity utilisation, and that Q4 should see losses “coming down substantially.” Management also said it continues with guidance that losses would reduce from about ₹25-26 crore to below ₹10 crore in the following year.

Capacity utilisation was also discussed in Q3 commentary. Management said utilisation decreased from 85% to 80% in Q3, while also mentioning an increase of about 4% from 76% on a quarter-on-quarter basis.

Distribution expansion and working capital movement

Somany Ceramics highlighted dealer and showroom expansion as an operating lever. Management said dealer additions were approximately 170 in nine months, taking the total to about 3,050 dealers, while showroom count increased to 530.

Working capital, as per management commentary, marginally increased by three days to 14 days, compared with FY25’s 11 days. The company also noted that the receivable cycle was slightly better, even as overall working capital moved up.

Balance sheet: debt at ₹231 crore, term loan ₹121 crore

The company disclosed that debt reduced to ₹231 crore. Management also referred to a term loan of ₹121 crore and said a majority of this debt would be paid over the next three years, with repayments continuing through 2029.

This is relevant because management also said that there were no new investments coming up, which could support cash flows being directed towards debt reduction and operational stabilisation.

Guidance and near-term expectations referenced by management

For FY26, management reiterated guidance for “decent single-digit” growth for the year and said EBITDA margin should improve by 1% to 1.5% in Q4 FY26. The company also discussed an intent to reduce discounting as market conditions improve.

Management also indicated that bath fittings were seeing a planned price increase due to rising brass costs, citing brass prices moving from around ₹570-580 per kg in April to about ₹770-780 per kg.

Key reported metrics at a glance

Why the Q4 and FY26 print matters

The Q4 FY26 results show a notable jump in profit despite a mid-single digit rise in revenue, which typically signals operating improvement, pricing discipline, mix shifts, or cost normalisation. Through FY26, management repeatedly pointed to stable gas pricing and a focus on better product mix and operating leverage.

The JV loss trajectory is another key variable highlighted by management. Any sustained reduction in Somany Max losses, as discussed in the Q3 call, could support consolidated profitability, especially if capacity utilisation improves as guided.

Closing summary

Somany Ceramics ended FY26 with higher profitability, posting Q4 net profit of ₹37.82 crore on sales of ₹811.97 crore and full-year net profit of ₹81.19 crore on sales of ₹2,770.51 crore. Management has maintained its commentary on steady demand improvement, stable fuel costs, distribution expansion, and a targeted reduction in JV losses. Investors will track follow-through on the stated Q4 margin improvement guidance and progress on debt reduction and the Somany Max turnaround timeline referenced by the company.