Analysts/Institutional Investor Meet/Con. Call Updates

Sonam Limited Q1 FY’27 Conference Call July 20, 2026 Moderator: Ladies and gentlemen, good day and welcome to the Q1 FY’27 Conference Call of Sonam Limited. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. If you need any assistance during the conference call, please signal an operator by pressing “*” then “0” on your touch-tone phone. I now hand the conference over to Mr. Jayeshbhai Shah. Thank you and over to you, sir. Jayeshbhai Shah: Good evening to all our valued shareholders, customers, employees, partners and stakeholders. On behalf of Sonam Limited, I extend my sincere gratitude to our shareholders, customers, distributors, employees, suppliers and all stakeholders for their unwavering trust and continued support. Your confidence has been instrumental in our journey of growth and excellence. The 1st Quarter of FY’27 has been an increasing start to the financial year, reflecting strong operational performance, deadly demand across our product portfolio and our continuing commitment to innovation and customer satisfaction. Despite a competitive business environment, the company has delivered robust growth while continuing to strengthen its market position. During the quarter, revenue for operations increased by 75.65% from previous year's same quarter to Rs. 6,656.96 lakhs. EBITDA stood at Rs. 538.45 lakhs, registering a strong growth of 78.02% while profit after tax (PAT) increased by 126.99% to Rs. 300.15 lakhs. The company reported an EBITDA margin of 8.06% and a PAT margin of 4.49%, reflecting our continued focus on operation efficiency, disciplined cost management and sustainable profitability. One of the key highlights during Q1 FY’27 was the successful launch of several new and innovative clock models across multiple product categories. The company introduced a wide range of products, including premium designer wall clock, digital calendar clock, Night Glow, decorative wall clock and modern lifestyle clocks. Page 1 of 8 These launches were strategically planned to cater to revolving consumer preferences, strengthen our presence across premium and value segments and further reinforce Sonam's reputation for quality, innovation and design excellence. The positive market response to this new product has been encouraging and strengthens our confidence in our long-term growth strategy. Looking ahead, we remain highly optimistic about the opportunities before us over the next four to five years. Sonam Limited will continue expanding its product portfolio by introducing a broader range of innovative and premium clock designs while strengthening its leadership position in the industry. We also remain committed to expanding our distribution portfolio across underserved markets, enabling wider market penetration and creating long-term value for our customers and stakeholders. At Sonam Limited, we firmly believe that sustainable growth is built on innovation, quality, operation excellence and strong corporate governance. As we move forward, we remain committed to delivering superior products, strengthening our brand and creating lasting value for all our stakeholders. I would like to express my heartfelt appreciation to our employees, distributors, business partners, customers and shareholders for their continued confidence and support. Together, we look forward to achieving new milestones and building a stronger future for Sonam Limited. Thank you very much. Moderator: Thank you sir. We will now begin the question-and-answer session. First question comes from the line of Shivam Gupta from Trinetra Asset Managers. Please go ahead. Shivam Gupta: Hi sir. Thank you for the opportunity. I wanted to ask, Q1 FY’27 revenue grew by 75.6% on a year-on-year basis, you have given the guidance that full-year guidance will be 25% to 30% growth. Is this pace sustainable throughout the rest of the year or was due to Q1 boosted by one of the factors? Jayeshbhai Shah: Yes, we hope that 25% to 30% growth will be sustained. We have launched a lot of new products and there is a new line-up of new products. Shivam Gupta: What will be the capacity utilization of this year? Jayeshbhai Shah: Capacity utilization is 60% to 70%. Shivam Gupta: Is this for the quarter or full year? Jayeshbhai Shah: Hello? Page 2 of 8 Shivam Gupta: Hello, is this 50% to 70% for the quarter or 50% to 70% for the full year? Jayeshbhai Shah: It is for quarter-to-quarter. Shivam Gupta: Okay. That is it from my side. Thank you. Moderator: Thank you. Next question comes from the line of Vaibhav Parekh from Balaji Capital. Please go ahead. Mr. Parekh, your line is unmuted. Please go ahead with your question. Vaibhav Parekh: Hello, I am audible. Jayeshbhai Shah: Yes. Vaibhav Parekh: First of all, congratulations, sir. Jayeshbhai Shah: Thank you for joining us. Vaibhav Parekh: Sir, my question is that if the price of raw material increases, how will Sonam manage it? Jayeshbhai Shah: We carry the raw material plan for 12 months. At the time when the raw material is expected to increase, we purchase raw material for six, seven months. So, we will not have any such problem of raw material. The way the prices are increasing in the market right now, instead we will get the benefit because we buy the raw material in advance. Vaibhav Parekh: Thank you, sir. Moderator: Thank you. Next question comes from the line of Pragyan Ladda from Omni Management LLP. Please go ahead. Pragyan Ladda: Sir, I am new to the company and I want to understand under which dynamics does the company work. What is the mode of the company? Can Sonam be replicated? In simple words. Jayeshbhai Shah: Hello? Please repeat the question. Pragyan Ladda: Sir, am I audible? Jayeshbhai Shah: Yes. Pragyan Ladda: Okay. Sir, I am asking can Sonam be replicated? What is the mode of our company? What are the strengths? Jayeshbhai Shah: Yes, sir. Our strength is basically our unique design models and our production capacity and our profitability regular maintaining, our export capacity. All our strength is which will give us a better result, quarter-on-quarter. Page 3 of 8 Pragyan Ladda: Sir, but if someone else has similar capacity and copies your design, these designs are not patented, right? So, if someone else copies your designs, what is our protection against it? What makes us different? What are we doing different than other clock manufacturers or what other small scale clock manufacturers cannot do? Jayeshbhai Shah: You can see our designs which are already different from the small retail manufacturers. Our old designs are unique and we have also designers in-house which will check the local market as well as the international market for regular development of unique designs. So, definitely we will provide unique models. Pragyan Ladda: Sir, you are right that you will provide unique models but won't this design be replicated? I mean, won't someone else come and make it? Jayeshbhai Shah: They will make it but we have a continuous new development. So, look, it takes six months, seven months or 12 months for someone to make a model and till then new models come and the models which have duplication we change a lot in that. The dials change, the colors are different. I mean, a lot of changes happen in a single model. So, due to the new in-house development, the small manufacturers will not be able to develop so quickly. Pragyan Ladda: Sir, secondly, if someone else wants to set up a plant like yours, then what will be the cost of rebuilding the entire Sonam on today's date? To set up manufacturing capacity, to bring in employees, what is the total value of your asset? Jayeshbhai Shah: Actually, if we want to build such a big plant, then according to me, it will not be possible to do it quickly because in this market, after so much hard work, we have made so many new models and everything, and we are improving it. So, if someone wants to [Showing first 8,000 characters — download PDF for full document]