Analysts/Institutional Investor Meet/Con. Call Updates

Sonam Limited Q2 FY’27 Conference Call October 26, 2026 Moderator: Ladies and gentlemen, good day and welcome to the Q2 FY’27 Conference Call of Sonam Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation has been concluded. If you need 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. Jayesh Shah. Thank you and over to you, sir. Jayesh Shah: Okay. Hello. Moderator: Yes, sir. You can start, sir. Jayesh Shah: Good evening, everyone. It gives me immense pleasure to share with you the financial performance of Sonam Limited for the first half of FY’26-27. Our performance during this period marks an important milestone in Sonam's growth journey. We have delivered exceptional growth in revenue and profitability reflecting the progress of our business and our commitment to creating sustainable value for all our stakeholders. During the half-year FY’27, our revenue from operations increased by 183%, reaching Rs. 195 crores compared with Rs. 69 crores in the corresponding period of the previous financial year. This remarkable increase in operations represents a significant step forward for our company and sets a strong benchmark. For our future aspirations, our EBITDA increased by 121%, reaching Rs. 11.94 crores compared with Rs. 5.39 crores in half-year FY’26. Our EBITDA margin stood at 6.7% compared with 7.73% in the corresponding period last year. More importantly, our profit after tax witnessed expansional growth of 213%, reaching Rs. 6.75 crores compared with Rs. 2.22 crores in FY’26 half-year. Our PAT margin also improved to 3.3% from 3.18%, representing an improvement of 0.25% points. These numbers demonstrate the substantial growth in the scale and profitability of our business. While we are encouraged by this performance, we also recognize the importance of strengthening operating efficiency and improving margin as we move forward. Page 1 of 12 At Sonam, we have always believed that our success should be measured not only by financial growth but also by the trust we build with our customers, the quality of our product and the long-term strength of our business. With a legacy dating back to 1996, our journey has been guided by a commitment to precision product innovation, quality and customer satisfaction. As we look ahead, our focus will remain on strengthening our product portfolio, enhancing operational capability, maintaining financial discipline and identifying opportunities that support long-term business growth. We understand that sustaining growth requires consistent execution, adaptability and a clear focus on customer expectations. Our objective is to build on the momentum achieved during the first half of the year while continuing to strengthen the foundation of our business. I would also like to take this opportunity to express my sincere gratitude to our employees, customers, business partners and shareholders for their continued trust and support. Their confidence in Sonam motivates us to aim higher, perform better and pursue better milestones. At Sonam, we believe that every passing moment presents a new opportunity to grow, innovate and create value. As our half year FY’27 performance demonstrates, we are committed to seeking new benchmarks with every passing moment. Thank you for your continued confidence in Sonam Limited. Thank you. Moderator: Thank you very much, sir. Ladies and gentlemen, we will now begin the question and answer session. The first question comes from the line of Utsav Jain from Chopra LLP. Please go ahead. Utsav Jain: Hello, am I audible? Moderator: You are audible, sir. Utsav Jain: Sure, sir. I want to ask that what is your main focus as your net profits are increasing but the margins are going really down. But your revenue is also increasing. So, what are you focusing Jayesh Shah: Sorry, sorry. Your voice is not clear. It is getting cut. Please. Utsav Jain: Hello. Am I audible now? Jayesh Shah: Yes. Utsav Jain: Yes. Sir, I was asking that what is your main focus as your net profit is increasing but the margins are going down. But at the same time, your revenue has also increased significantly. So, what are you actually focusing at? Page 2 of 12 Jayesh Shah: Hello. Actually, the raw material prices got increased in the market but we focused more on the business and by giving special schemes and special discount we grew the business. According to that net profit is slightly less but revenue has increased and profit after, total profit, income has increased. Utsav Jain: Okay, sir. Moderator: Thank you. The next question comes from the line of Devendra Chawla from Prasoon Exponentials. Please go ahead. Devendra Chawla: Hello, sir. I wanted to understand what do you expect the revenue growth to be moving forward from here and what is driving this revenue growth? Jayesh Shah: Hello. Your voice is not clear. Devendra Chawla: Am I audible now? Jayesh Shah: Yes. But your voice is getting cut. Devendra Chawla: Sir, what is driving your revenue growth and how do you expect the sales to grow moving forward? Jayesh Shah: Hello. Please repeat the question. Hello. Moderator: I will move on to the next question. Next question comes from the line of Aditi, an individual investor. Please go ahead. Aditi: Am I audible, sir? Jayesh Shah: Yes. Aditi: Sir, I wanted to ask that our H1 revenue is around Rs. 196 crores. How much is our manufactured sales in this? And similar question, our manufacturing sales in our Rs. 171 crore revenue last year, how much was the manufacturing sales in that? Jayesh Shah: The manufacturing in this year, in the half year. The revenue growth for the half year, hello, Rs. 19 crores, Rs. 20 crores is our actual manufacturing. And balance is what we import and we also sell imported goods, like the material which is used in the clocks, we also import that material and do its trading. Aditi: Understood sir, so basically out of 195 we are saying 20 is manufacturing, is it? Jayesh Shah: Yes. Page 3 of 12 Aditi: Okay, and last year sir, how much was this number? Out of last year, full year sale of Rs. 171 crore, how much was manufacturing? Jayesh Shah: In Rs. 171 crore, manufacturing was Rs. 60 crore. Aditi: Okay, and sir, in this, how much is our operating margin in manufacturing sale and how much is the margin in importing and then selling it? Is there a difference in margin? Jayesh Shah: Yes, there is a difference in margin. Actually, in imported goods, we have an average margin of 3% to 4% and the average margin in trading activity and in manufacturing activity, there is 21% gross profit. Aditi: 21% gross profit, okay. And the 3% to 4% that you said, that is effective because there are no manufacturing expenses, so I am assuming that is your operating margin, is it? Jayesh Shah: Yes, operating margin. Aditi: Okay, so there is 3% to 4% operating margin in importing and then selling it and 21% gross margin is in manufacturing. Jayesh Shah: Yes. Aditi: Understood. Okay sir, and going ahead, what do we think as the overall, I mean, how much is our utilization now? Because last year, if we are talking about capacity utilization of Rs. 20 crore, I assume we are having enough room, right? In terms of, how much is the total capacity and how much is the capacity utilization now? Jayesh Shah: The capacity utilization for now is 52%. Actually this year freight cost has increased in export. So, according to that export is a little less. There is an effect on export. Accordingly, it is a little less at the manufacturing level. But as the price of crude oil increased in the market, according to that we have a good profit in raw material. The raw material that we purchase and sell here, has a good margin and turnover is also very good. Aditi: Understood. So, on the raw material front, we have benefited, but the ex [Showing first 8,000 characters — download PDF for full document]