Slides
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SOMANY CERAMICS LIMITED Driving the Next Phase of Growth September 11, 2026
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Somany Ceramics Ltd | Investor Presentation Industry Disruption Creates Opportunity 2 Domestic demand remains robust, supported by healthy residential real estate demand, renovations, premium housing, and infrastructure spending. Premiumization trend continues, with consumers increasingly preferring higher- value tiles, large formats, and premium finishes. Morbi ceramic industry faced significant disruption due to shortages and elevated prices of propane and natural gas, impacting production across the cluster. Gas prices surged sharply, rising from ~₹45/scm to as high as ~₹90/scm and the uncertainty regarding pricing continues. Any significant price reduction is not expected in short term. Exports fell to ~₹2,900 crore in Q1 FY27 versus ~₹4,800 crore in Q1 FY26 (de-grew by 39% YOY). Export volumes stood at ~69 msm, de-grew by 51% y-o-y. Industry players implemented price hikes to offset higher fuel and logistics costs, demonstrating improved pricing discipline. Organized players with units spread across multiple geographies are gaining relative advantage, benefiting from stronger brands, wider distribution networks, and manufacturing flexibility during industry disruption.
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Somany Ceramics Ltd | Investor Presentation Opportunity In Transition 3 Brand + Distribution reach + Manufacturing facilities at multiple geographies > opportunity to gain market share Changing industry dynamics incrementally favoring Organized players Strengthening Somany Ceramics value proposition. Narrowing Pricing Gap Added ~200 dealers in FY26, taking the network to ~3,100 Active dealers with 550 exclusive showrooms. Distribution Network High utilization, improving JV profitability, and low-capex capacity enhancements create a strong platform for margin expansion and earnings growth as volumes recover. Operating Leverage to Drive Earnings Growth Chanel accumulated stock in March before price increase which was sold in April & May, Now, they are cautious due to Gas price uncertainty but have started building adequate stocks. Channel Restocking now getting normalized