Sonam Ltd FY26: Revenue Sprints 64% to ₹171 Cr While the Credit Rating Quietly Walks Out the Door

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1 — At a Glance

Sonam Ltd — the Morbi-based clockmaker formerly called Sonam Clock — closed FY26 with revenue up 64.2% year-on-year to ₹171 crore, the single largest jump in a decade of records. PAT rose 15.6% to ₹7.32 crore. Read together, those two numbers set the tension the rest of this entry circles: the top line nearly doubled while profit added a modest sixth.

The gap has a name on the operating line. OPM slid to 8% in FY26 from 12% a year earlier, so the extra ₹67 crore of sales arrived carrying thinner margins than the revenue it joined.

Two facts sit at the edges of the story and refuse to stay quiet. In September 2025, Crisil revised the company’s bank-loan rating to B/Stable and tagged it “Issuer Not Cooperating,” down a full staircase from the BBB- it held in 2022. And promoter holding, once 73%, now reads 57.55%.

The market currently pays 29.5x earnings for all of this, against an industry multiple of 42x.

Does a 64% revenue year erase a rating downgrade, or just outrun it for four quarters?

2 — Introduction

Sonam has been keeping time since 1986, when Jayesh Shah started the brand as a sole proprietorship in Morbi. The business was formally incorporated in 2001, listed on NSE Emerge in 2018, migrated to the NSE main board in April 2022, and dropped “Clock” from its name in September 2023 to become plain Sonam Limited.

The corporate-action trail is busier than the products suggest. A 1:1 bonus in July 2022 doubled the share count; a 1:2 stock split approved by postal ballot in March 2024 took face value from ₹10 to ₹5. The FY26 audited results were approved by the board on 2 July 2026, alongside notice of the 25th AGM held on 25 June.

FY26 itself is the loudest chapter yet. Revenue crossing ₹171 crore is real scale for a company that did ₹88 crore two years earlier. The chairman’s letter frames FY26 as “a remarkable year” of expansion; the credit file and the margin line frame it with rather more restraint. Both framings are working off the same set of numbers.

3 — Business Model: WTF Do They Even Do?

They make clocks. Wall clocks, table clocks, alarm clocks, LED digital clocks, pendulum clocks, musical clocks, designer clocks — the full parade of things that hang on a wall and remind you time is passing. Sonam sells 1,400+ clock variants across budget, mid and premium tiers, under the brands Sonam, Lotus, LEXY and ampm.

The genuinely interesting bit is one level down: movements. Sonam manufactures its own quartz clock movements — the mechanical heart — in-house, a backward-integration step it took in 2012. Installed capacity runs to 72 lakh clocks and 240 lakh clock movements per annum. It also runs a components business (movements, cases, parts) and, per the FY26 presentation, a small “Check & Correct” calculator line of four models. A clockmaker with a calculator sideline is a specific kind of ambition.

Distribution reaches 25+ countries through 150+ distributors and 35,000+ retailers. The FY26 presentation puts the export map in sharp relief: Iraq alone is 37.86% of international revenue, with Turkey (11.58%) and UAE (10.16%) trailing. On the domestic side, Kerala and Tamil Nadu lead, each around 15%.

So the model is: mold the parts, make the movement, assemble the clock, box it, and push it through a distributor network into Indian homes and Middle Eastern importers. Vertically integrated timekeeping. The concall added a strategic wrinkle — management is nudging MRPs from ₹3,000 toward ₹6,000, “focusing more on value instead of volume.” A clockmaker deciding its clocks should cost more is a thesis you can at least see the shape of.

4 — Financials Overview

Figures are in ₹ crore.

Revenue outran every other line by a wide margin. Operating profit rose 17% and PAT 15.6% — respectable in isolation, but a fraction of the 64% the top line put up.

On the concall (3 June 2026), management directly attributed the disconnect between revenue growth and slower profit growth to margin pressure from “market’s