• Volume growth outlook: Q2 sales volumes are projected to nearly double sequentially following the resumption of operations in Morbi, keeping the full-year mid-to-high single-digit volume guidance intact.
• Topline growth guidance: The company expects combined volume and value growth to reach the mid-20s for FY27, supported by strong domestic demand, though near-term realization depends on volatile gas-linked pricing.
• Gas price pressure: With natural gas accounting for 30% of tile production costs, further industry-wide price hikes will hinge on the magnitude of expected gas price increases in October.
• Export unit shutdowns: Approximately 200 to 250 export-oriented manufacturing units across the industry may face temporary shutdowns in October due to severe drops in export orders, whereas Somany remains insulated due to its domestic market focus.
• EBITDA margin target: The 11%+ EBITDA margin guidance remains intact, driven by internal efficiencies, capacity unlocking, and profitable joint ventures, with any extreme gas cost increases expected to be passed through.