Somany Ceramics Confident Of High Single-Digit Revenue Growth Led By Enhanced Capacity Utilisation

Somany Ceramics Ltd. is poised to deliver high single-digit revenue growth in FY26, powered by enhanced capacity utilisation and a stronger push toward value-added sales, according to Managing Director and CEO, Abhishek Somany.

“Capacity utilisation really makes a lot of difference in Ebitda, backed by value-added sales. Both appear strong over Q2 and also H2. We should be on track for a high single-digit. If that happens, Ebitda automatically climbs by 1-1.5% at least,” he said in a conversation with NDTV Profit. 

The company is targeting capacity utilisation of 80-81% in FY26.

“As far as our manufacturing is concerned, we hope to bring it to last year's levels, which is about 80-81%. From the current mid-75% range, we should be able to pick it up by 5-6%,” the top executive said.

Somany observed that domestic demand for ceramic tiles and related products had remained "flattish" but stable. He noted that smaller players, unable to export, were resorting to "increased tax evasion practices and therefore dumping into the market," which was temporarily affecting volumes, though not pricing.

The company went in for a minor price hike in July, which it expected to sustain without further increases, while focusing on boosting sales in the value-added segment.

Somany dismissed concerns about the company's financial health, asserting the balance sheet was "extremely healthy."

"Our debt has come down by Rs 40-50 crore on a consolidated basis. We do not have any debt on a standalone basis."

Somany was upbeat about the company's joint venture with Durabuild, which holds 150 intellectual property patents in construction chemicals, particularly waterproofing and cement admixtures.

“We are going to be doing the entire value chain for waterproofing. We will go to market in Q3. We want to build this whole new line of business, which is construction chemicals. Most of these construction chemicals go into all the commercial and real estate buildings. Therefore, it is synergistic for us,” he noted. 

Shares of Somany Ceramics closed 1.36% lower at Rs 503.5 apiece on the NSE, while the benchmark Nifty50 ended 1% higher at 24,876.95.