Smallcap Stock Jumps 9% After Reporting 70% YoY Increase in Net Profits

Synopsis: A company in the consumer durables space has given out its Q3FY26 result that stated a 70 percent and 42 percent YoY and QoQ profit growth and also saw a 15 percent increase in volume from one of its segment, with a clear growth in its volumes for the latest quarter.

A small cap stock where the company is in the business of manufacturing and trading of complete decor solutions saw its stock in the spotlight soon after they announced their latest result, with profit up 70 percent. With a market cap of Rs 1,664 Cr, Somany Ceramics Ltd saw its stock hit an intraday high of Rs 421 which is 9 percent higher than the previous close of Rs 386.

The Q3FY26 Result

In the latest quarterly result the company has seen its revenue from operations increase by almost 6 percent YoY, from Rs 645 Cr in Q3FY25 to Rs 682 Cr in Q3FY26, while the QoQ decreased by less than 1 percent from Rs 685 Cr. The net profits grew by 70 percent going from Rs 10 Cr in Q3FY25 to Rs 17 Cr in Q3FY26, while the QoQ increased by 42 percent from Q2FY26’s Rs 12 Cr.

In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 4 percent YoY, from Rs 1,877 Cr in 9MFY25 to Rs 1,958 Cr in 9MFY26. The net profits for the same period fell by 7 percent going from Rs 39 Cr to Rs 36 Cr.

The company has a 3 year sales CAGR of 8 percent, while the TTM is at 4 percent. The company’s 3 year profit CAGR is at negative 11 percent, while the TTM number is at negative 6 percent. Additionally, The company has a ROCE of 11 percent and a ROE of 8 percent.

Volume Growth

For Q3FY26, the company has seen its tiles volume increase by 2 percent from 17.08 msm in Q3FY25 to 17.48 msm in Q3FY26. In this the company’s own manufacturing’s share increased from 5.5 msm to 5.6 msm, while the JVs’ decrease from  5.59 msm to 5.04 msm. The volume from outsourced tiles also increased from 5.94 msm to 6.83 msm, which is a 15 percent increase  on YoY basis

Sales Mix

The company sees 26 percent of its total revenue come from its own manufacturing, 28 percent from the Joint Ventures it has formed over time, and 30 percent from outsourced tiles, 11 percent from bathware while the rest 5 percent from others.

Somany Ceramics Ltd is a leading Indian ceramic and tile manufacturer, engaged in producing tiles, sanitaryware, bath fittings, and home décor solutions. Founded in 1968, the company serves residential and commercial markets through a strong pan-India distribution network and exports to multiple countries, making it a well-established player in the building materials and home decor sector. 

The company has a tiles manufacturing capacity of approximately 75 million square metres per annum, including dedicated outsourced tie-ups. It also has a sanitaryware production capacity of 0.48 million pieces per annum and a bath fittings capacity of 1.30 million pieces per annum, both excluding outsourced tie-ups.

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