Somany CEO: 1 in 5 Indian tile plants face shutdown as gas costs squeeze Morbi cluster
Somany Ceramics flags 20% of India's tile plants at closure risk as rising gas prices and costly European kilns drive consolidation across Morbi's 850-unit cluster. Company posts ₹817.93 cr Q4 FY26 revenue (+6.36% YoY), commits ₹600 cr capex over 30 months targeting low double-digit growth.
What happened
Somany Ceramics CEO predicts 20% of India's tile plants will shut as rising gas prices and costly European equipment force consolidation in Morbi cluster.
Key facts
- 20% of plants to shut
- ₹817.93 crore Q4 FY26 revenue
- 6.36% YoY growth
- ₹600 crore capex over 30 months
- 72 million sq ft sold
- 79% capacity utilization
- 84% revenue from tiles
- 98% domestic
- 850 Morbi plants
Why this matters
Distressed Morbi tile assets will hit the market over the next 12-24 months—build a target list of sub-scale plants with modern kilns trading below replacement cost.