SONAM LTD Q2 CONCALL : H1 REVENUE SURGES 183% YOY, EBITDA UP 121% & NET PROFIT JUMPS 204%; MARGIN PRESSURE REMAINS A CONCERN

• MANAGEMENT EMPHASIZES SUSTAINING REVENUE GROWTH, IMPROVING OPERATING EFFICIENCY & STRENGTHENING PROFITABILITY • MANAGEMENT DID NOT PROVIDE SPECIFIC FY27 REVENUE GROWTH, EBITDA MARGIN OR NET PROFIT GUIDANCE • H1 FY27 REVENUE SURGED 183% YOY TO ₹195 CR, COMPARED WITH ₹69 CR IN H1 FY26 • H1 EBITDA INCREASED 121% YOY TO ₹11.94 CR, COMPARED WITH ₹5.39 CR LAST YEAR • H1 NET PROFIT JUMPED APPROXIMATELY 204% YOY TO ₹6.75 CR, COMPARED WITH ₹2.22 CR LAST YEAR • REVENUE GROWTH OF 183% SIGNIFICANTLY OUTPACED EBITDA GROWTH OF 121%, INDICATING PRESSURE ON OPERATING PROFITABILITY • MANAGEMENT REPORTED EBITDA MARGIN OF 6.7% AGAINST 7.73% YOY, INDICATING A DECLINE OF 103 BPS • REPORTED EBITDA MARGIN REQUIRES RECONCILIATION, AS ₹11.94 CR EBITDA ON ₹195 CR REVENUE IMPLIES APPROXIMATELY 6.12% • MANAGEMENT HIGHLIGHTED THE IMPORTANCE OF IMPROVING MARGINS ALONGSIDE RAPID BUSINESS EXPANSION • MANUFACTURING & TRADING BUSINESSES CONTRIBUTED TO OPERATIONS, BUT THEIR INDIVIDUAL REVENUE & PROFITABILITY CONTRIBUTIONS WERE NOT CLEARLY DISCLOSED • Q2 OTHER EXPENSES WERE CITED AT ₹5.1 CR, COMPARED WITH ₹2.4 CR IN Q1, INDICATING A SIGNIFICANT SEQUENTIAL INCREASE • FREIGHT & LOGISTICS EXPENSES REMAIN IMPORTANT COST COMPONENTS, WITH POTENTIAL IMPLICATIONS FOR OPERATING MARGINS • MANAGEMENT INTENDS TO STRENGTHEN PRODUCT PORTFOLIO, INNOVATION & QUALITY TO SUPPORT LONG-TERM BUSINESS GROWTH • MANAGEMENT DID NOT DISCLOSE RELIABLE NUMERICAL TARGETS FOR CAPACITY UTILIZATION, CAPITAL EXPENDITURE, DEBT REDUCTION OR FUTURE ORDER GROWTH • STRONG REVENUE & PROFIT GROWTH REMAIN POSITIVE, BUT EBITDA MARGIN PRESSURE, UNCLEAR TRADING CONTRIBUTION, HIGHER EXPENSES & LIMITED FINANCIAL DISCLOSURES ARE KEY RISKS

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