1.At a Glance
Somany Ceramics’ Q1 FY26 numbers just came in, and they’re about as exciting as a cracked bathroom tile —PAT down 40% YoY, margins eroding, and demand looking patchy. Management tried to jazz things up with a ₹50 Cr investment in its subsidiary, but the market still slapped the stock down ~3%.
2.Introduction
Picture this: you walk into a posh home, admire the floor tiles, and someone whispers, “Somany made these.” You nod approvingly, until you check their latest quarterly results and realise that profitability is vanishing faster than freebies at a Diwali sale.
Somany isn’t some new kid on the block — it’s been around long enough to see three real estate cycles, a dozen GST tweaks, and enough competitors to fill a ceramic graveyard. Yet here we are, in FY26, with the company facing weak margins and slowing growth, despite India’s housing boom.
3.Business Model (WTF Do They Even Do?)
Somany’s business is simple in theory:
- Make & trade tiles— ceramic wall/floor, polished vitrified, glazed vitrified.
- Sell sanitary ware & bath fittings— a small but growing segment.
- Be a ‘decor solutions’ company— basically, try to sell everything you’d find in a fancy bathroom, short of the toothbrush.
FY23 revenue mix:
- Ceramic Tiles: 34%
- Polished Vitrified Tiles: 26%
- Glazed Vitrified Tiles: 29%
- Sanitary Ware: 6%
- Bath Fittings: 4%
4.Financials Overview
| Metric | Latest Qtr (Q1 FY26) | YoY Qtr (Q1 FY25) | Prev Qtr (Q4 FY25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 604.44 | 578.58 | 768.99 | 4.47% | -21.44% |
| EBITDA (₹ Cr) | 48.18 | 48.96 | 62.46 | -1.59% | -22.91% |
| PAT (₹ Cr) | 7.35 | 12.26 | 18.71 | -40.05% | -60.73% |
| EPS (₹) | 2.53 | 2.99 | 5.20 | -15.39% | -51.35% |
Annualised EPS = ₹2.53
× 4 = ₹10.12 → P/E ~ 50.9.Commentary: Revenue flat-ish YoY but PAT collapsing means costs are eating the cake faster than sales can bake it.
5.Valuation (Fair Value RANGE only)
Method 1: P/E
- Industry sustainable P/E for stable tile companies: 20–25×.
- EPS annualised = ₹10.12 → FV range by P/E = ₹202 – ₹253.
Method 2: EV/EBITDA
- TTM EBITDA ~₹220 Cr, sector EV/EBITDA ~10–12×.
- EV range = ₹2,200 – ₹2,640 Cr → Per share FV range ≈ ₹536 – ₹644.(On EV math, current price is fair-ish.)
Method 3: DCF (10% discount, 5% growth)
- FV ~₹500 – ₹550.
Educational FV Range:₹202 – ₹550(Educational purposes only; if you smash your bathroom tiles in joy/disgust after this, we’re not liable.)
6.What’s Cooking – News, Triggers, Drama
- Q1 FY26: Profit down sharply; weak operating leverage.
- ₹50 Cr in subsidiary Somany Max— possibly expanding premium tile capacity
