SONAM LIMITED (SONAMLTD)
₹76.67 +0.58% last close, 16 Oct
Q2 FY27 results
📅 Next results: 21 Oct 2026 (board meeting)SONAM LIMITED's board meets on 21 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, SONAM's revenue was ₹66.6 Cr (+75.6% year on year, +4.6% on the previous quarter), and net profit ₹3.0 Cr (+127.4% year on year); the operating margin was 7.7%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹66.6 | +75.6% | +4.6% |
| Operating profit | ₹5.1 | +100.3% | -9.4% |
| Net profit | ₹3.0 | +127.4% | +3.5% |
| EPS (₹) | 0.75 | +127.3% | +4.2% |
| Operating margin | 7.7% | — | — |
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📢 Recent Corporate Announcements
Sonam Limited has declared an interim dividend of Re. 0.30 per equity share for the financial year 2026-27. This payout represents 6% of the face value of Rs. 5 per share. The company has established August 4, 2026, as the record date to identify eligible shareholders. The dividend is scheduled to be paid to shareholders on or before August 21, 2026.
- Interim dividend of Re. 0.30 declared per equity share of face value Rs. 5
- Record date for determining eligibility is fixed as August 4, 2026
- Dividend payment to be completed by August 21, 2026
- Dividend yield is approximately 0.54% based on the current price of Rs. 55.2
- Board meeting concluded within 30 minutes (10:30 AM to 11:00 AM)
Sonam Limited has declared an interim dividend of ₹0.30 per equity share for the financial year 2026-27. This payout is based on a face value of ₹5.00 per share, representing a 6% dividend rate. The company has established August 4, 2026, as the record date for determining shareholder eligibility. The total payout is scheduled to be completed by August 21, 2026.
- Interim dividend of ₹0.30 per equity share declared for FY 2026-27
- Dividend represents 6% of the face value of ₹5.00 per share
- Record date for eligibility fixed as August 4, 2026
- Payment to be disbursed on or before August 21, 2026
- Board meeting concluded within 30 minutes, starting at 10:30 AM and ending at 11:00 AM
Sonam Limited reported a robust Q1 FY27 with revenue increasing 75.65% YoY to Rs 66.57 Cr and PAT surging 126.99% to Rs 3.00 Cr. Management attributed the exceptional profit growth partly to low-cost raw material inventory, which may not recur at the same intensity. Consequently, full-year revenue growth guidance is set at a more conservative 25-30%. The company is pivoting toward a 'value over volume' strategy, targeting premium clock segments priced between Rs 5,000 and Rs 15,000.
- Revenue for Q1 FY27 grew 75.65% YoY to Rs 66.57 Cr.
- Profit After Tax (PAT) increased by 126.99% YoY to Rs 3.00 Cr.
- Management maintains a full-year revenue growth guidance of 25% to 30%.
- Current manufacturing capacity utilization stands at 60% to 70%.
- Q2 FY27 revenue is projected to be between Rs 40 Cr and Rs 50 Cr.
Sonam Limited has released the recording link for its Analyst/Institutional Investor meeting held on July 21, 2026. This is a procedural disclosure under SEBI regulations to ensure transparency for all shareholders. The company, which operates in the wall clock and plastic granules trading segments, recently reported a quarterly revenue of ‡31.32 Cr for Sep 2025. Investors should look for management commentary regarding the 196 bps margin decline experienced in FY25 due to input costs.
- Recording link for the investor meet held on July 21, 2026, has been made public
- Promoter holding remains stable at 57.55% as of March 2026
- Company reported a net profit of ‡0.90 Cr on revenue of ‡31.32 Cr in Sep 2025
- Debt levels stand at ‡21 Cr against a net worth of ‡71 Cr (D/E of 0.30)
Sonam Limited has filed its latest investor presentation, providing an update on its wall clock manufacturing and plastic granules trading business. The company reported a revenue of ₹31.32 Cr and a PAT of ₹0.90 Cr for the quarter ended September 2025. With a debt of ₹21 Cr against a net worth of ₹71 Cr, the company maintains a conservative Debt-to-Equity ratio of 0.30. The presentation likely highlights the company's focus on Middle Eastern market expansion and its 30+ years of promoter experience in the Morbi hub.
- Promoter holding remains steady at 57.55% as of March 2026
- Reported quarterly revenue of ₹31.32 Cr for September 2025
- Operating margins faced a decline of 196 bps in FY25 due to input and freight costs
- Maintains a moderate debt level of ₹21 Cr relative to ₹71 Cr net worth
- Working capital utilization remained at 76% for the 12 months ended July 2025
Sonam Limited reported a strong performance for the quarter ended June 30, 2026, with revenue from operations rising 75.6% YoY to ₹66.57 Cr. Net profit more than doubled to ₹3.00 Cr from ₹1.32 Cr in the year-ago period. The growth was largely driven by the trading segment, with purchases of stock-in-trade increasing to ₹45.40 Cr from ₹21.52 Cr. Operating margins showed improvement, and EPS rose to ₹0.75 from ₹0.33 YoY.
- Revenue from operations grew 75.6% YoY to ₹66.57 Cr from ₹37.90 Cr.
- Net profit surged 127.3% YoY to ₹3.00 Cr compared to ₹1.32 Cr in Q1 FY26.
- Purchase of stock-in-trade (trading activity) jumped 111% YoY to ₹45.40 Cr.
- Earnings Per Share (EPS) increased to ₹0.75 from ₹0.33 in the previous year's corresponding quarter.
- Total Comprehensive Income for the period stood at ₹4.36 Cr, aided by fair value gains on investments.
Sonam Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The company's Registrar and Share Transfer Agent, Bigshare Services, confirmed that 100% of the company's shares are currently held in dematerialized form. No requests for rematerialization (converting electronic shares to physical certificates) were received during the quarter ended June 30, 2026. This is a standard administrative disclosure required by SEBI.
- 100% of the company's shares are held in dematerialized form as of June 30, 2026
- Zero rematerialization requests were received during the April-June 2026 quarter
- Compliance certificate issued by Bigshare Services Pvt. Ltd. on July 7, 2026
Sonam Limited has informed the exchange of a scheduled meeting with analysts and institutional investors on July 15, 2026. This is a routine procedural disclosure under SEBI (LODR) Regulations. The company, a Morbi-based wall clock manufacturer, recently reported a Sep 2025 quarterly revenue of Rs 31.32 cr and a net profit of Rs 0.90 cr. With a debt-to-equity ratio of 0.30 and a net worth of Rs 71 cr, the company is maintaining a stable financial position while engaging with the investor community.
- Meeting with analysts/institutional investors scheduled for July 15, 2026
- Latest reported quarterly revenue (Sep 2025) stands at Rs 31.32 cr
- Promoter holding maintained at 57.55% as of March 2026
- Company operates with a moderate debt of Rs 21 cr against a net worth of Rs 71 cr
Sonam Limited reported a robust performance for Q1 FY27, with revenue from operations surging 76% YoY to Rs 66.52 Cr. Net profit grew even faster, jumping 127% YoY to Rs 3.00 Cr from Rs 1.32 Cr in the same period last year. The company's EPS improved significantly to Rs 0.75 from Rs 0.33. However, the results highlight a heavy reliance on trading, with 'Purchase of Stock-in-trade' (likely plastic granules) accounting for 73% of total expenses.
- Revenue from operations increased 76% YoY to Rs 66.52 Cr from Rs 37.80 Cr.
- Net profit surged 127% YoY to Rs 3.00 Cr compared to Rs 1.32 Cr in Q1 FY26.
- Purchase of stock-in-trade reached Rs 45.40 Cr, representing 73% of total quarterly expenses.
- Earnings Per Share (EPS) more than doubled to Rs 0.75 from Rs 0.33 YoY.
- Total Comprehensive Income for the period stood at Rs 4.36 Cr, aided by investment fair value gains.
Sonam Limited's board met on May 29, 2026, to approve the audited standalone financial results for the fiscal year ended March 31, 2026. The statutory auditors issued an unmodified opinion, indicating no major accounting discrepancies. Key governance actions include the re-appointment of promoter-director Mrs. Deepa Shah and the appointment of two independent directors. The company has set June 18, 2026, as the cut-off date for shareholder voting eligibility for the upcoming Annual General Meeting.
- Board approved audited standalone financial results for the quarter and year ended March 31, 2026.
- 25th Annual General Meeting (AGM) to be held on June 25, 2026, via video conferencing.
- Fixed June 18, 2026, as the cut-off date for determining shareholder eligibility to vote.
- Re-appointment of Mrs. Deepa Jayeshbhai Shah (Promoter Group) who holds 1,001,900 equity shares.
- Appointment of M/s. Dipesh Bhoot & Co. as Internal Auditor for the financial year 2026-27.
Sonam Limited has announced the closure of its trading window for all designated persons starting July 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, regarding the upcoming un-audited financial results for the quarter ending June 30, 2026. The window will remain closed until 48 hours after the results are declared. This is a standard regulatory procedure and does not reflect changes in business operations.
- Trading window closure effective from July 1, 2026
- Closure pertains to the first quarter ending June 30, 2026
- Window to reopen 48 hours after the declaration of un-audited financial results
- Applicable to all promoters, directors, and designated persons
Sonam Limited has filed the Scrutinizer Report regarding the e-voting results for its 25th Annual General Meeting (AGM). The report confirms the voting outcomes for all resolutions proposed in the AGM notice as per regulatory requirements. This is a standard compliance procedure following the conclusion of the company's annual shareholder meeting. The filing ensures transparency in the corporate governance process by documenting shareholder participation and approval levels.
- Completion of the 25th Annual General Meeting voting process
- Submission of the formal Scrutinizer Report to the National Stock Exchange
- Covers e-voting results for all resolutions contained in the AGM notice
- Authenticated by Chairman and Managing Director Jayeshbhai C. Shah
- Ensures compliance with SEBI listing obligations and disclosure requirements
Sonam Limited successfully conducted its 25th Annual General Meeting on June 25, 2026, where shareholders considered the adoption of audited standalone financial statements for the year ended March 31, 2025. The meeting involved the passing of six key resolutions, including the re-appointment of Mrs. Deepaben Jayeshbhai Shah as a Whole-time Director and Mr. Suresh Somnath Dave as an Independent Director for a second five-year term. Significantly, the statutory and secretarial auditors issued reports with no qualifications or adverse remarks. The company also secured approvals for related party transactions and director remuneration.
- Adoption of Audited Standalone Financial Statements for the financial year ended March 31, 2025.
- Re-appointment of Mr. Suresh Somnath Dave as an Independent Director for a second term of 5 years.
- Appointment of Mrs. Tanishka Anilbhai Dhamejani as a Non-Executive Independent Director confirmed.
- Statutory and Secretarial Auditors reported zero qualifications, reservations, or adverse remarks in their reports.
- Approval granted for Related Party Transactions and the remuneration of Mr. Harshil Jayeshbhai Shah.
Sonam Limited reported a robust 64.21% year-on-year revenue growth reaching ₹171 crores for FY26, although PAT growth was more modest at 15.63% due to rising raw material and freight costs. The company is strategically shifting towards premium products with higher price points (up to ₹6,000) to improve margins. Management has provided a positive growth guidance of 25-30% for FY27, backed by a strong order book despite geopolitical challenges in export markets like Iraq. Working capital efficiency improved significantly with debtor days standing at 29 days.
- Revenue from operations increased by 64.21% YoY to ₹171 crores in FY26.
- Management guided for a 25% to 30% revenue growth in FY27.
- Debtors reduced from ₹10 crores in FY25 to ₹6.73 crores in FY26, reflecting better collection efficiency.
- Capacity utilization is currently at 50-60%, leaving significant room for growth.
- The company is expanding its presence on e-commerce platforms like Amazon, Flipkart, and Myntra.
Sonam Limited has scheduled its 25th Annual General Meeting (AGM) for June 25, 2026, to be conducted via video conferencing. To facilitate this, the company will close its Register of Members and Share Transfer Books from June 19, 2026, to June 25, 2026. The cut-off date to determine shareholder eligibility for voting on resolutions has been fixed as June 18, 2026. This is a standard regulatory compliance procedure for listed entities.
- 25th Annual General Meeting (AGM) scheduled for June 25, 2026, at 04:30 PM IST.
- Book closure period set from June 19, 2026, to June 25, 2026 (both days inclusive).
- Cut-off date for determining voting eligibility is June 18, 2026.
- The AGM will be held through Video Conferencing (VC) or Other Audio Visual Means (OAVM).
Financial Performance
Revenue Growth by Segment
Total Operating Income (TOI) grew 19.88% YoY to INR 105.06 Cr in FY25 from INR 87.64 Cr in FY24. Revenue is derived from Clock Sales (35-40%), Clock Movements (25-30%), and Trading Activities (30-40%) including plastic granules.
Geographic Revenue Split
Domestic sales contribute approximately 79% of revenue, while Export sales (primarily to Middle East countries like Dubai, Qatar, and Iraq) contribute 21% in FY25, down from 25% in FY24.
Profitability Margins
PBILDT margin declined by 196 bps to 12.37% in FY25 from 14.33% in FY24 due to higher raw material and freight costs. PAT margin remained stable at 6.03% in FY25 compared to 6.26% in FY24.
EBITDA Margin
PBILDT margin was 12.37% in FY25. In Q1FY26, the margin declined significantly to 6.75% (from 11.42% in Q1FY25) primarily due to a higher proportion of low-margin trading sales.
Capital Expenditure
The company has no debt-funded capital expenditure planned for the near to medium term, aiming to maintain its current comfortable capital structure.
Credit Rating & Borrowing
CARE Ratings reaffirmed 'CARE BBB-; Stable / CARE A3' in September 2025. Interest coverage ratio improved to 6.27x in FY25 from 4.41x in FY24 due to lower debt levels and moderate profitability.
Operational Drivers
Raw Materials
Key raw materials include Plastic Granules (High Impact Polystyrene - HIPS, General Purpose Polystyrene - GPPS), Glass, and Time Movement Parts.
Import Sources
The company is a net importer of plastic granules, glass, and clock movement parts, though specific country-wise import percentages are not disclosed.
Capacity Expansion
Current installed capacity is not specified in units, but the company operates a manufacturing facility in Morbi, Gujarat, and has no immediate plans for debt-funded expansion.
Raw Material Costs
Raw material costs are a significant driver of margins; PBILDT margins fell 196 bps in FY25 largely due to volatility in commodity prices for plastic and glass.
Manufacturing Efficiency
Average fund-based working capital utilization remained moderate at 76% for the 12 months ended July 2025.
Logistics & Distribution
Distribution is impacted by global freight costs; higher freight expenses were a primary factor in the 196 bps decline in FY25 operating margins.
Strategic Growth
Expected Growth Rate
8%
Growth Strategy
Growth is driven by the promoters' 30+ years of experience in the wall clock industry and the strategic location in Morbi, Gujarat. The company is expanding its trading segment (plastic granules) and leveraging established domestic and export networks in the Middle East.
Products & Services
Wall Clocks, Clock Movements, and traded Plastic Granules (HIPS/GPPS).
Brand Portfolio
Sonam, Sonam Quartz.
Market Expansion
The company is focused on deepening its presence in Middle Eastern markets including Dubai, Qatar, and Iraq.
Market Share & Ranking
Not disclosed; the industry is noted as highly fragmented with many mid-sized players.
Strategic Alliances
None disclosed; the company has no subsidiaries, associates, or joint ventures.
External Factors
Industry Trends
The wall clock industry is evolving with new technologies and changing consumer preferences; it remains highly competitive with pressure from cheap imports.
Competitive Landscape
Faces intense competition from large integrated domestic players, numerous mid-sized companies, and low-cost imports.
Competitive Moat
Moat is based on the 'Morbi Hub' advantage (access to labor/raw materials) and long-standing promoter relationships, which are sustainable but face pressure from fragmented competition.
Macro Economic Sensitivity
Highly sensitive to global commodity prices (plastic/glass) and international freight rates.
Consumer Behavior
Shifting towards technologically advanced timepieces and evolving aesthetic preferences in home decor.
Geopolitical Risks
Exposure to trade dynamics in the Middle East, which accounts for the bulk of its 21% export revenue.
Regulatory & Governance
Industry Regulations
Operations are subject to standard manufacturing norms and Companies Act 2013 requirements; the company is ISO 9001:2008 accredited.
Environmental Compliance
ESG risks were noted as 'Not Applicable' in the CARE credit rating report.
Taxation Policy Impact
Current tax liabilities stood at INR 57.58 Lakhs as of September 30, 2025.
Legal Contingencies
No proceedings are pending against the company under the Benami Transactions (Prohibition) Act, 1988. No other material litigation was disclosed.
Risk Analysis
Key Uncertainties
Volatility in raw material prices and lack of forex hedging could impact profitability by 2-3% in adverse scenarios.
Geographic Concentration Risk
79% of revenue is concentrated in the Indian domestic market; exports are concentrated in the Middle East.
Third Party Dependencies
High dependency on external suppliers for plastic granules and clock movement parts.
Technology Obsolescence Risk
Risk of traditional wall clocks being displaced by smart devices and evolving digital home decor trends.
Credit & Counterparty Risk
Working capital intensive with GCA days between 140-200; receivables are managed with 45-90 day credit cycles.
