Sonam Limited H1 revenue rises 183% to ₹195 crore in FY27

Sonam Limited reported H1 FY27 revenue of ₹195 crore, a 183% increase from ₹69 crore a year earlier, led primarily by polymer and raw-material trading. H1 profit after tax rose 213% to ₹6.75 crore, while the EBITDA margin declined to 6.7% from 7.73% because of freight costs and a larger contribution from lower-margin trading.

What did Sonam Limited report for H1 FY27?

Sonam Limited reported revenue from operations of ₹195 crore for H1 FY27, compared with ₹69 crore in H1 FY26. The company said the sharp rise was driven largely by its plastic polymer and raw-material trading activity, which accounted for most of the half-year revenue.

Profit after tax for the first half rose to ₹6.75 crore from the corresponding period a year earlier, representing growth of 213%. Management also retained its full-year FY27 revenue target of ₹300-350 crore and guided for profit after tax of ₹12-14 crore. These targets indicate that the company expects the trading business and its manufacturing operations to contribute through the second half.

How did Sonam Limited perform in the July-September quarter?

Sonam Limited reported standalone Q2 FY27 revenue of ₹129.39 crore, up 313.12% from ₹31.32 crore in Q2 FY26. The results, announced on 21 October 2026, covered the quarter ended 30 September 2026 and were followed by an earnings conference call on 26 October.

Q2 operating profit was ₹5.83 crore, compared with ₹2.24 crore a year earlier, an increase of 160.27%. Net profit rose to ₹3.76 crore from ₹0.90 crore, or 317.78% year-on-year. The company presentation separately reported EBITDA of ₹11.95 crore, converted from ₹1,194.68 lakh, compared with ₹5.40 crore in the prior-year period, an increase of 121.31%.

The difference between the rapid expansion in revenue and the lower growth rate in operating profitability reflects the composition of sales. Trading added substantially to turnover, but it carries lower margins than manufacturing. The quarterly figures therefore show both the scale of the top-line increase and the importance of product mix in assessing earnings quality.

Why did Sonam Limited's EBITDA margin decline?

Sonam Limited said EBITDA margin declined to 6.7% in H1 FY27 from 7.73% in H1 FY26 because of higher freight costs and the dilution caused by low-margin trading sales. This means revenue increased faster than operating profitability as the contribution from the trading business expanded.

Manufacturing accounted for about ₹20 crore of H1 revenue, while the remaining revenue came mainly from plastic polymer trading. Manufacturing capacity utilisation stood at 52%, according to management. The numbers show that the company has unused manufacturing capacity, even as trading represented the larger share of reported sales during the first half.

This distinction matters because a revenue increase from trading does not necessarily have the same margin profile as sales of manufactured consumer durable products. The stated margin movement provides a measurable indication of this mix effect, without establishing whether the margin level will change further in subsequent quarters.

What is Sonam Limited's plan for the rest of FY27?

Sonam Limited plans to scale its manufacturing business through premium clocks and original equipment manufacturer arrangements, including tie-ups with Titan and Amazon. Management cited these arrangements while reiterating its FY27 revenue guidance of ₹300-350 crore and profit-after-tax guidance of ₹12-14 crore.

The company operates in the consumer durables segment, where its manufacturing activity is relevant alongside the larger trading business reported in H1. Premium products and OEM arrangements are part of the stated plan to increase manufacturing activity. No equity fundraising or issue of share capital was reported in the Q2 FY27 investor presentation.

The company hosted its Q2 and half-year earnings call on 26 October 2026, after results were announced on 21 October. The call transcript highlighted the H1 growth, the freight-cost impact on margins and management's manufacturing expansion plans. These disclosed targets and operating details are the main reference points for tracking its second-half performance.

How do the results affect Sonam Limited investors and operations?

Sonam Limited's results provide investors with two separate indicators: revenue growth of 183% in H1 and an EBITDA margin decline of 1.03 percentage points. The reported figures show that the increase in revenue was concentrated in trading, while manufacturing contributed about ₹20 crore and operated at 52% capacity utilisation.

For operations, the OEM arrangements and premium-clock strategy are relevant because management has linked them to manufacturing expansion. For investors, the stated FY27 targets of ₹300-350 crore in revenue and ₹12-14 crore in profit after tax set disclosed benchmarks against which the second-half results can be measured. The company has not reported an equity capital raise in its Q2 presentation, so the update does not indicate a change in share capital from this source.

Conclusion

Sonam Limited's H1 FY27 performance was marked by a substantial increase in revenue and profit, with trading activity driving much of the expansion. At the same time, the reduction in EBITDA margin highlights the effect of higher freight costs and a business mix weighted toward lower-margin trading rather than manufacturing.

The next key disclosures will be the company's progress toward its FY27 revenue target of ₹300-350 crore and profit-after-tax target of ₹12-14 crore. Investors can also track whether premium clocks, Titan and Amazon OEM arrangements, and the existing 52% manufacturing capacity utilisation translate into a larger manufacturing contribution in the second half.