Somany Ceramics Ltd Management Discussions

GLOBAL ECONOMY

In CY 2025, the global economy continued to grow at a moderate and steady pace, despite ongoing geopolitical tensions and trade-related uncertainties. The World Economic Outlook Update (April 2026) released by the International Monetary Fund estimated global output growth at approximately 3.1% in CY 2026, reflecting resilient economic performance across key regions.

However, this resilience is increasingly being tested in CY 2026. Global economic conditions have weakened as geopolitical tensions continue to disrupt the fragile post-pandemic recovery. Conflicts such as the Russia-Ukraine war and the ongoing instability in West Asia have led to downward revisions in growth forecasts. These factors have also undermined trade routes, damaged infrastructure and weighed on investor confidence, leading to uncertainty across markets. Supply disruptions in key energy and agricultural regions have pushed up oil, gas and food prices, reigniting inflationary pressures worldwide.

In response, central banks, including the US Federal Reserve, the European Central Bank (ECB), and the Bank of England have maintained tighter monetary policies, keeping interest rates elevated, resulting in higher borrowing costs. This has moderated consumption and investment, dampening overall economic activity. At the same time, rising military expenditure and crisis response measures are straining public finances, especially in developing economies. Weak trade flows, cautious investment behavior and fiscal constraints are reinforcing these trends. Together, these factors are likely to weigh on both short-term stability and long-term global growth prospects.

Performance of Major Economies

The United States

The United States economy grew by 2.1% in CY 2025. Looking ahead, growth is projected to improve marginally to 2.3% in CY 2026, before further declining to 2.1% in CY 2027.

Euro Area

After expanding at 1.4% in CY 2025, the Euro Area economy is showing signs of deceleration. Growth is projected to decline to 1.1% in CY 2026 and then grow marginally, reaching 1.2% in CY 2027.

China

Chinas economy registered a growth rate of 5.0% in CY 2025. However, projections suggest a measured deceleration, with growth expected to moderate to 4.4% in CY 2026 and further to 4.0% in CY 2027.

Germany

The real GDP of the German economy in CY 2025 showed a growth rate of 0.2%. However, it is expected to see a rebound in CY 2026, with a projected growth rate of 0.8%. Looking ahead to CY 2027, the economy is anticipated to experience a stronger recovery, with a projected growth rate of 1.2%.

The UK

The UK economy recorded a modest growth rate of 1.3% in CY 2025. It is projected to decline to 0.8% in CY 2026, followed by a recovery of 1.3% in CY 2027.

Outlook

Building on these near-term pressures, global outlook remains tilted to the downside amid multiple risks and structural vulnerabilities. Elevated public debt, widening fiscal deficits and tighter financial conditions are heightening the risk of market instability, particularly in emerging and developing economies. At the same time, financial system fragilities, including rising leverage and increased exposure to non-banking institutions, continue to add uncertainty. Volatile capital flows and higher borrowing costs further constrain growth prospects. While technological advancements and potential structural reforms offer some upside, their impact remains uncertain and uneven. Overall, the trajectory of the global economy will depend on the evolution of geopolitical tensions and how effectively policymakers manage trade-Rs oRs s between inflation control, financial stability and growth.

INDIAN ECONOMY

Indias economic trajectory in FY 2025-26 reflected sustained growth supported by strong domestic fundamentals and prudent policy management. As per the Second Advance Estimates released by the National Statistics Office (NSO) in February 2026, real GDP was projected to grow by 7.6% during the year. This underscored the resilience of domestic demand and the structural strength of the economy.

Despite a challenging global environment marked by trade frictions and geopolitical tensions, the Indian economy remained stable. Inflation was largely contained, supported by improving labor market dynamics and stronger financial sector buRs ers. Combined fiscal and monetary measures further reinforced macroeconomic stability, sustaining growth momentum.

The Indian Government has reafirmed its commitment to infrastructure-led economic development, creating a conducive environment for the real estate sector. This continued focus on infrastructure, manufacturing, urban development and tourism is expected to generate momentum across residential, commercial, industrial and hospitality real estate segments.

Building on this direction, the ongoing expansion of public capital expenditure continues to support the sector positively. Infrastructure outlay has increased to Rs 12.2 Lakh Crores in FY 2026-27 from Rs 11.2 Lakh Crores in FY 2025-26. Sustained investments in transportation networks and urban infrastructure are likely to unlock new real estate growth corridors, particularly beyond established metropolitan markets. The targeted focus on Tier-2 and Tier-3 cities with populations exceeding 5 Lakhs recognises their rising economic relevance and is expected to stimulate incremental demand across diverse real estate asset classes in these emerging centers.

Crucially, this infrastructure momentum coincides with a benign inflationary environment, with Consumer Price Index (CPI) at 3.48% in 2025-26. The moderation in price pressures preserve household purchasing power and support favorable financing conditions, thereby reinforcing end-user confidence. In combination with infrastructure-led improvements in connectivity and livability, stable inflation is expected to underpin steady absorption across the market, sustaining broader real estate momentum while maintaining macroeconomic balance.

In this context, the Economic Survey

2025-26 highlights the growing centrality of urban India. Cities are recognized as core economic engines, driving a significant share of national output. By 2030, over 40% of Indias population is expected to reside in urban areas, contributing nearly 70% of GDP. This structural shift highlights the importance of sustained urban planning, infrastructure expansion and coordinated policy support in shaping the next phase of real estate growth.

Outlook

Indias economic outlook remains optimistic, supported by strong macroeconomic fundamentals and sustained growth momentum. The medium-term trajectory continues to be robust, with the Reserve Bank of India projecting real GDP growth for FY 2026-27 at approximately 6.9%. While this marks a moderation from previous years amid geopolitical tensions and energy supply risks, it underscores the economys inherent resilience in an increasingly uncertain global environment.

In this context, India currently ranks as the worlds sixth-largest economy in nominal terms, following recent currency movements and GDP data recalibrations that have positioned it behind the United Kingdom and Japan. Even so, its status as the fastest- growing-major economy reinforces confidence in its long-term trajectory, with IMF projections indicating a steady strengthening of its global standing as domestic growth drivers remain intact.

Looking ahead, sustaining this momentum will depend on the pace and effectiveness of structural reforms aimed at enhancing productivity, improving competitiveness, and deepening economic resilience. Continued focus on these areas will be crucial for India to consolidate its gains and progress toward securing a place among the worlds top three economies by the end of the decade.

CERAMIC TILES INDUSTRY

Global Market Size

The global ceramic tiles market, which was valued at USD 226.41 billion in CY 2025, is projected to reach USD 380.61 billion by CYRs 2033, registering a CAGR of 6.6% from CYRs 2026 to CY 2033. Regionally, Asia-Pacific accounted for the largest revenue share of 68.9% in CY 2025, underscoring its position as the dominant market for ceramic tiles. Major economies such as China, India, and Japan continue to drive demand, supported by significant activity in residential, commercial, and industrial developments. In addition, a growing middle-class population, improving disposable incomes, and sustained infrastructure investments are further strengthening consumption across the region. Consequently, Asia-Pacific is expected to remain the primary growth engine of the global ceramic tiles market over the forecast period.

Indian Market Size

Indias tiles market is projected to grow from approximately Rs 53,000 Crores in FY 2025-Rs 26 to Rs 76,900 Crores by FY 2028-29. This expansion reflects a broader alignment of strong domestic demand, rising urbanization, and continued investments in housing and infrastructure.

Over the past two years, the Indian ceramic tile industry has further strengthened its global position. It has emerged as the worlds second-largest manufacturer, consumer, and exporter after China. However, the growth mix is gradually evolving, with exports facing headwinds due to anti-dumping duties in key markets such as Saudi Arabia, Qatar, and Taiwan. As a result, manufacturers are increasingly recalibrating their focus toward domestic housing, commercial real estate, and infrastructure projects, where demand visibility remains strong.

SANITARYWARE AND BATH FITTINGS MARKET

Global Market Size

The global sanitaryware market is poised for steady expansion. It is expected to grow from USD 57.62 billion in CY 2025 to USD 61.27 billion in CY 2026. The market is further projected to reach USD 83.35 billion by CY 2031, reflecting a CAGR of 6.34% over CY 2026 to CY 2031. Regionally, the Middle East and Africa are emerging as high-growth markets, underpinned by approximately USD 1.5 trillion in mega infrastructure and urban development projects. Asia-Pacific continues to command the largest share of global demand, supported by large-scale housing construction and renovation cycles.

In mature markets such as the United States and Western Europe, aging housing stock is fueling renovation-led demand. Homeowners are prioritizing performance upgrades, universal design features, and energy-eRs cient retrofits over new builds. This momentum is helping stabilize revenue streams amid cyclical fluctuations in new construction.

Indian Market Size

The Indian sanitaryware industry market was valued at USD 948.5 million in FY 2024-25, expanding at a CAGR of 7.9% between FY 2023-24 and FY 2028-30. Within this landscape, the faucets segment is also expected to witness steady expansion. The India faucets market is estimated at USD 1.89 billion in FY 2025-26, rising from USD 1.76 billion in FY 2024-25. It is further projected to reach USD 2.66 billion by CY 2031, reflecting a CAGR of 7.12% over FY 2026-2031.

GOVERNMENT INITIATIVES FOR TILE AND BATH FITTINGS MARKET

City Economic Regions (CERs)

In the Union Budget 2026-27, the government unveiled City Economic Regions (CERs), designed to cluster multiple urban centers, including Tier-I and Tier-III cities as well as prominent temple towns, into integrated economic ecosystems. Each CER will receive dedicated infrastructure funding of Rs 5,000 Crores over a five-year period, to strengthen connectivity, industrial linkages, and urban services.

This initiative aims to promote more balanced regional development by reducing pressure on metropolitan hubs. It is also expected to channel investments into emerging growth corridors. By enhancing infrastructure and economic integration across secondary cities, CERs are likely to unlock new residential and commercial real estate opportunities. This broadens housing demand beyond traditional metro markets.

Pradhan Mantri Awas Yojana (Urban) 2.0

In the Union Budget for 2026-27, the government allocated Rs 18,625.05 Crores to accelerate the expansion of the Pradhan Mantri Awas Yojana (Urban) 2.0 scheme. This enhanced outlay is intended to reinforce the delivery of affordable housing while sustaining the momentum of the governments mission to provide housing for all.

PMAY has played a pivotal role in addressing Indias housing shortage across both urban and rural regions. Through its credit-linked subsidy component, the scheme reduces the effective interest burden on eligible beneficiaries, enabling greater access to formal housing finance. Beyond homeownership, the scheme also supports the development of basic civic amenities, thereby significantly improving living standards and promoting inclusive urban growth.

Infrastructure Risk Guarantee Fund

The introduction of a Partial Credit Guarantee for private developers, backed by a proposed Infrastructure Risk Guarantee Fund, is expected to serve as a significant risk-mitigation mechanism for lenders. By reducing perceived credit risk, the initiative aims to lower the cost of capital and facilitate greater funding flows into long-gestation and urban infrastructure projects.

Its core objective is to enhance confidence among private sector participants, particularly during the development and construction phases where project risks are typically higher. By improving credit assurance and easing financing constraints, the measure is likely to accelerate project execution and deepen private participation in infrastructure creation.

Swachh Bharat Mission

Indias nationwide sanitation push, spearheaded by initiatives such as the Swachh Bharat Mission, has placed hygiene and cleanliness at the center of public policy. This is particularly evident across underserved urban and rural regions. Large-scale construction of household toilets and community sanitation facilities has significantly expanded the base of basic bathroom infrastructure. These developments create sustained demand for tiles, sanitaryware, and bath fittings.

Threats

Geopolitical Tensions and Supply Chain Disruptions

Increasing geopolitical tensions and evolving trade restrictions are creating uncertainty in global supply chains. Export-import dynamics are becoming more complex, affecting raw material sourcing and finished goods trade. These disruptions add to operational unpredictability and can limit market access for manufacturers dependent on international trade flows.

Rising Energy Costs and Input Costs Volatility

The industry is facing significant cost pressures due to a sharp increase in energy prices, particularly natural gas, which currently constitutes 25% to 30% of total production costs and serves as a key input in kiln-firing processes. Recent 2026 supply disruptions in West Asia and the abrupt shutdown of production by major exporters such as Qatar have led to a nearly 70% spike in spot LNG prices, resulting in a substantial increase in overall production costs.

Shortage of Skilled Labor

Workforce preferences are shifting toward service and technology-oriented sectors, reducing the availability of skilled manufacturing labor and increasing wage costs. As a result, operational efficiency is declining, and maintaining production consistency is becoming more challenging.

Competitive Pressure from Low-cost Imports

Domestic manufacturers are facing intense competition from a growing influx of low-cost imports from countries like China and Vietnam. Despite the presence of anti-dumping measures, these players continue to strategically target Tier-2 and Tier-3 markets with competitive pricing, putting pressure on margins and market share of mid-sized domestic players.

INDIAN REAL ESTATE MARKET

Indias real estate market is on a steady growth track, with its value projected to rise from USD 585.09 billion in CY 2026 to USD 926.56 billion by CYRs 2031, at a CAGR of 9.63%. By asset class, residential real estate accounted for 70.1% of the market in CY 2025, reinforcing its structural dominance. However, the commercial segment is expected to witness a CAGR of 10.79% through CY 2025-2031.

COMPANY OVERVIEW

Somany Ceramics Limited (also referred to as ‘Somany or ‘the Company) continues to elevate its position as a distinguished force in the global ceramics and bath solutions industry. Known for its focus on innovation and premium quality, the Company serves residential and commercial markets with a broad range of ceramic and vitrified tiles, sanitaryware, bath solutions and construction chemicals.

During FY 2025-26, Somany achieved a key strategic milestone with the conclusion of its joint venture with Durabuild Care Private Limited., marking its entry into the construction chemicals and waterproofing segment. This strategic foray is anchored in an IP-led approach, granting access to a wide portfolio of proprietary formulations and a clear pathway to progressively enhance ownership. The segment also offers a structurally stronger margin profile, reinforcing the Companys focus on improving its earnings mix.

The initial focus is on waterproofing solutions, spanning concrete admixtures used during construction, specialized applications for wet areas and crack-resistant wall solutions. By leveraging its established dealer ecosystem and expanding into hardware and paint channels, Somany is well-positioned to scale this vertical efficiently and capture a meaningful share of this high-growth market. More broadly, the Company remains centered on profitable growth through calibrated improvement in product mix with emphasis on strengthening the GVT and Bathware segments. Supported by sustained government impetus in housing and infrastructure, Somany remains confident in the industrys long-term growth trajectory. It is well prepared to capitalize on emerging opportunities in the second half of the year and beyond.

STANDALONE FINANCIAL REVIEW

In FY 2025-26, the Company recorded revenue from operations of Rs 2,64,030 Lakhs, reflecting a growth of 2.8% compared to Rs 2,56,942 Lakhs in the previous financial year. Other income stood at Rs 2,697 Lakhs, contributing 9.1% to total revenues, reflecting Somanys continued strategic focus on its core business operations. Somanys total expenses increased by 1.6% from Rs 2,49,088 Lakhs in FY 2024-25 to Rs 2,52,959 Lakhs in FY 2025-26, highlighting the Companys growth trajectory.

Material costs, including the purchase of traded goods, accounted for 65.7% of revenue. These costs increased by 2.1%, from Rs 1,71,728 Lakhs in FY 2024-25 to Rs 1,75,266 Lakhs in FYRs 2025-26. Over the year, Somanys employee expenses constituted 10.2% of revenue and rose by 4.1%, increasing from Rs 26,198 Lakhs in FY 2024-25 to Rs 27,261 Lakhs in FY 2025-Rs 26. The Companys power and fuel costs increased by 9.1%, from Rs 20,557 Lakhs in 2024-25 to Rs 22,437 Lakhs in 2025-Rs 26.

Analysis of the Balance Sheet

Sources of Funds

As of the year ending on 31 March, 2026, Somanys capital employed increased from Rs 84,141 Lakhs in FY 2024-25 to Rs 93,210 Lakhs in FY 2025-26. The Companys net worth, also increased from Rs 80,028 Lakhs to Rs 89,073 Lakhs during the same period. At the close of the fiscal year, the Company had 4,10,12,806 equity shares of Rs 2/- each.

In addition, the Company has long-term debt of Rs 960 Lakhs, representing long-term debt-equity ratio of 0.01 as of 31 March, 2026. Somany also saw an increment in finance costs from Rs 756 Lakhs to Rs 1,077 Lakhs in FY 2025-26.

Applications of Funds

The Companys gross block, including CWIP, rose by 11.9% from Rs 74,841 Lakhs as of 31Rs March, 2025, to Rs 83,773 Lakhs as of 31Rs March, 2026, primarily on account of capacity balancing equipment. Depreciation and amortization also increased by 17.5%, up from Rs 5,312 Lakhs in FY 2024-25 to Rs 6,243 Lakhs in FY 2025-26. The long-term loans & advances made by the Company decreased marginally by 0.1% from Rs 5,346 Lakhs as of 31 March, 2025, to Rs 5,341 Lakhs as of 31 March, 2026.

Investments

The Companys non-current investments grew from Rs 32,558 Lakhs as of 31 March, 2025, to Rs 38,096 Lakhs as of 31 March, 2026, primarily driven by investment in new subsidiary and existing subsidiaries.

Working Capital Management

As of 31 March, 2026, the Companys current assets increased by 0.1% to Rs 65,788 Lakhs from Rs 65,753 Lakhs in the previous year. Further, the inventory levels of the Company, which include raw materials, work-in-progress, and finished goods, increased by 12.0% from Rs 19,089 Lakhs to Rs 21,372 Lakhs in FY 2025-26. The inventory turnover cycle increased to 30 days in FY 2025-26 from 27 days in FY 2024-25. However, the Companys debtors turnover cycle decreased from 51 days to 38 days, with debtors of Rs 27,003 Lakhs in FY 2025-26 compared to Rs 35,628 Lakhs in FY 2024-25. On the other hand, the current loans and advances made by the Company remained NIL as of 31 March, 2025 and 31 March, 2026.

Margins

The Companys EBITDA margin increased by 160 basis points, from 5.4% in FY 2024-25 to 7.0% in FY 2025-26. Similarly, the net profit margin also increased by 50 basis points, rising from 3.3% in FY 2024-25 to 3.8% in FY 2025-26.

Key Numbers

Particulars	FY 2025-26	FY 2024-25
Debtors Cycle (Days)	38	51
Inventory Cycle (Days)	30	27
Interest Coverage Ratio (x)	13.79	14.66
Current Ratio (x)	1.19	1.09
EBITDA/Turnover (%)	7.0	5.4
Debt-Equity Ratio (x)	0.02	0.02
Net Profit Margin (%)	3.8	3.3
Return on Net Worth (%)	11.7	11.2
Book Value per Share (Rs )	217.18	195.15
Earnings per Share (Rs ) (Basic)	24.16	20.89

CONSOLIDATED FINANCIAL REVIEW

In FY 2025-26, Somany recorded a growth in revenue from operations of 4.9%, reaching Rs 2,78,984 Lakhs, up from Rs 2,65,877 Lakhs in FYRs 2024-25. Other income stood at Rs 1,132 Lakhs, contributing 0.4% to the overall revenue mix, further underlining the Companys strategic focus on strengthening its principal lines of business.

The Companys total expenses increased by 4.1% from Rs 2,58,057 Lakhs in FY 2024-25 to Rs 2,68,730 Lakhs in FY 2025-26, which was aligned with the Companys growth. Material costs (including purchases of traded goods) which constituted 50.7% of the Companys revenues, increased by 9.1% from Rs 1,30,135 Lakhs in FY 2024-25 to Rs 1,41,991 Lakhs in FY 2025-26. The Companys employees expenses, accounting for 12.9% of the revenues, increased by 1.6% from Rs 35,474 Lakhs in FY 2024-25 to Rs 36,056 Lakhs in FYRs 2025-26. Additionally, the Companys power and fuel costs reduced by 6.3% from Rs 50,225 Lakhs in FY 2024-25 to Rs 47,079 Lakhs in FYRs 2025-26.

Analysis of the Balance Sheet

Sources of Funds

As of year, ending on 31 March, 2026, the Companys capital employed increased from Rs 1,17,193 Lakhs in FY 2024-25 to Rs 1,19,392 Lakhs in FY 2025-26. Additionally, the Companys net worth increased from Rs 77,166 Lakhs to Rs 84,238 Lakhs in the same period. The Companys long-fiterm debt decreased by 23.1% to Rs 11,451 Lakhs on 31 March, 2026.

The long-term debt-equity ratio reached 0.14x in FYRs 2025-26. Additionally, the Companys finance cost decreased by 9.0%, from Rs 5,243 Lakhs to Rs 4,772 Lakhs in FY 2025-26.

Application of Funds

As of 31 March, 2026, the Companys gross block, inclusive of CWIP, increased by 8.2% to Rs 1,56,873 Lakhs, compared to Rs 1,45,025 Lakhs a year earlier primarily on account of capacity balancing equipment. Depreciation and amortization saw an upward movement, rising 19.1% year-on-year from Rs 9,026 Lakhs to Rs 10,748 Lakhs mainly because of increase in block of assets. The loans and advances made by the Company decreased from Rs 389 Lakhs in FY 2024-25 to Rs 255 Lakhs in FY 2025-26.

Working Capital Management

As of 31 March, 2026, the Companys current assets increased by 1.0% to Rs 85,433 Lakhs, up from Rs 84,570 Lakhs in the previous year. Further, the Companys inventory, comprising raw materials, work-in-progress, and finished goods, increased by 4.3% from Rs 33,786 Lakhs to Rs 35,227 Lakhs in FY 2025-26. The inventory turnover cycle reduced to 46 days in FY 2025-26 from 47 days in FY 2024-25. Further, the Companys debtors turnover cycle decreased from 51 days to 40 days, with debtors of Rs 30,076 Lakhs in FY 2025-26 compared to Rs 36,882 Lakhs in FY 2024-25.

Margins

A continued focus on operational excellence helped Somany contain the margin impact. The EBITDA margin increase by 90 basis points to 9.3% in FY 2025-26, up from 8.4% in the previous year. Net profit margins followed suit, registering an increase of 60 basis points to reach 2.9%, compared to 2.3% in FYRs 2024-25.

Key Numbers

Particulars	FY 2025-26	FY 2024-25
Debtors Cycle (Days)	40	51
Inventory Cycle (Days)	46	47
Interest Coverage Ratio (x)	3.39	2.66
Current Ratio (x)	1.10	1.01
EBITDA/Turnover (%)	9.3	8.4
Debt-Equity Ratio (x)	0.30	0.39
Net Profit Margin (%)	2.9	2.3
Return on Net Worth (%)	10.1	8.1
Book Value per Share (Rs )	205.39	188.17
Earnings per Share (Rs ) (Basic)	19.80	14.65

HUMAN RESOURCES

Somany Ceramics continues to focus on creating an engaging and enriching workplace experience for its employees. The Company promotes a culture of learning, collaboration, innovation, and mutual respect, enabling employees to achieve both personal and professional growth. Through robust development initiatives, transparent communication, and a strong recognition-driven culture, Somany ensures that its workforce feels empowered, appreciated, and aligned with the organizations vision. During this financial year, the Company introduced an AI-Enabled Recruitment platform to streamline hiring processes and enhance candidate experience. Initiatives such as Focus Group Discussions, New Joiners Connect and a structured Mentorship Program were implemented to support smooth onboarding, employee engagement, and career development. The Company focused on employee wellbeing and environmental responsibility through initiatives such as Environment Day celebrations, tree plantation drives, International Yoga Day activities, and wellness sessions. These initiatives encouraged employees to adopt healthier lifestyles while fostering awareness toward sustainability and community wellbeing. The Company also strengthened its commitment toward nurturing young talent through the NAPS Apprentice Program, providing hands-on industry exposure and learning opportunities. Additionally, sessions on Women Empowerment and Financial Literacy were organized to promote awareness, inclusivity, and employee wellbeing. These initiatives collectively reflect Somanys dedication toward building a progressive, inclusive, and future-ready workplace.

As of 31 March, 2026, the Company had 2,001 employees on its payroll.

Audit Discipline

Somany has established a forward-looking risk governance framework designed to anticipate challenges rather than merely respond to them. Anchored in strong internal controls and clearly defined accountability, this framework reflects a culture rooted in precision, preparedness, and disciplined execution.

At its center is a distinguished Internal Audit Committee comprising eminent Independent Directors. Their role extends beyond statutory oversight. Through structured reviews and open dialogue, they identify emerging risks, evaluate critical findings, and present comprehensive insights to the Board every quarter. This consistent evaluation strengthens strategic clarity and empowers leadership to make timely, well-informed decisions in an evolving business landscape.

This oversight is reinforced by regular leadership forums, where senior executives collectively assess market shifts, forecast potential exposures, and design proactive mitigation strategies. Such ongoing engagement enhances organizational agility, ensures regulatory alignment, and strengthens the Companys ability to respond swiftly to evolving challenges.

For Somany, risk is viewed not as a limitation but as a catalyst for sharper thinking and better choices. Integrity, transparency, and accountability define its governance approach, enabling the Company to act with foresight and confidence. Guided by principled leadership and strategic vigilance, the Company continues to navigate uncertainty with clarity while fostering enduring stakeholder trust.

Cautionary Statement

The section comprises statements that indicate the Companys aims, projections, expectations, and estimations. These statements may be considered ‘forward-looking according to securities laws and regulations, and there is a possibility that the actual results may differ significantly from what is expressed or implied. Various factors such as economic conditions affecting supply and demand, fluctuations in raw material costs, alterations in Government rules and tax laws, economic developments, and other unanticipated factors could severely affect the Companys operations.