SURANAT&P - Surana Telecom

📊 NSE: SURANAT&P 🏢 Power Generation And Supply 📅 Last Updated: 12/14/2025 13:57

💰 Financial Performance

Revenue Growth by Segment

The Infra & Others segment grew by 347.7% YoY to INR 855.19 Lakhs in H1 FY26, while the Renewable Energy (Solar) segment experienced a 9.5% decline to INR 495.84 Lakhs compared to INR 547.89 Lakhs in H1 FY25.

Geographic Revenue Split

The company operates in both domestic and overseas markets; however, the specific percentage split between regions is not disclosed in the available documents.

Profitability Margins

The Net Profit Margin for FY25 was 298.67%, a significant increase from 49.18% in FY24. For H1 FY26, the consolidated Net Profit was INR 261.56 Lakhs, representing a 29.8% decline from INR 372.89 Lakhs in H1 FY25.

EBITDA Margin

Consolidated Segment Results (Profit before tax and interest) for H1 FY26 was INR 85.90 Lakhs, up 78.9% from INR 48.01 Lakhs in H1 FY25, though overall net profitability was impacted by lower other income.

Capital Expenditure

Historical depreciation and amortization for H1 FY26 was INR 106.46 Lakhs compared to INR 207.25 Lakhs in H1 FY25; specific planned future CapEx in INR Cr is not disclosed.

Credit Rating & Borrowing

The company maintains a 'Stable' outlook from CARE Ratings (as of November 08, 2023). Finance costs for H1 FY26 were INR 10.66 Lakhs, an increase of 9% from INR 9.78 Lakhs in H1 FY25.

⚙️ Operational Drivers

Raw Materials

Key raw materials include petroleum-based inputs for Petroleum Jelly and components for Telecom Jointing Kits; specific percentage of total cost per material is not disclosed.

Import Sources

Not specifically disclosed, though the company notes exposure to global demand/supply conditions and domestic markets.

Key Suppliers

Not disclosed in the provided financial statements or MDA.

Capacity Expansion

Current and planned capacity in MW or MT is not specified, though the company operates in the Renewable Energy (Solar) and Infrastructure sectors.

Raw Material Costs

Cost of Traded Goods for H1 FY26 was INR 650.57 Lakhs, representing approximately 48.1% of consolidated revenue, compared to just INR 27.75 Lakhs in H1 FY25.

Manufacturing Efficiency

Inventory turnover improved significantly, with inventory days dropping from 20 days in FY24 to 0 days in FY25, indicating a shift in operational model or liquidation of stock.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

82.80%

Growth Strategy

Growth is being driven by a massive expansion in the Infrastructure segment (347.7% growth in H1 FY26). The company is pivoting from its historical focus on petro/telecom products toward renewable energy and infrastructure services to capture market demand.

Products & Services

Solar power generation, Infrastructure services, Petroleum Jelly, and Telecom Jointing Kits.

Brand Portfolio

Surana Telecom and Power.

New Products/Services

The company has transitioned from manufacturing petro products to renewable energy and infrastructure; specific new product revenue contributions are not quantified.

Market Expansion

The company targets both domestic and overseas markets for its products and services.

Strategic Alliances

The group includes four subsidiaries and one associate company, Surana Solar Limited.

🌍 External Factors

Industry Trends

The industry is shifting toward renewable energy; the company's solar segment currently faces profitability challenges with a segment loss of INR 57.29 Lakhs in H1 FY26, while the infrastructure sector is showing rapid growth.

Competitive Landscape

The company operates in highly competitive sectors including solar power and infrastructure where pricing is largely market-driven.

Competitive Moat

The company relies on its long-standing presence since 1989 and diversification into infrastructure; however, it faces high competition and regulatory sensitivity in the solar space.

Macro Economic Sensitivity

Highly sensitive to global and domestic economic developments and demand/supply conditions affecting the price of finished goods.

Consumer Behavior

Demand is driven by government and industrial shifts toward green energy and infrastructure development.

Geopolitical Risks

Operations are subject to global demand/supply conditions and changes in international trade environments.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by government regulations affecting solar tariffs, infrastructure project norms, and petroleum product standards.

Environmental Compliance

Not specifically quantified in INR, but the company operates in the renewable energy sector which is subject to environmental norms.

Taxation Policy Impact

The company is subject to changes in Indian tax laws; H1 FY26 tax expense was INR 80.97 Lakhs on a consolidated PBT of INR 342.53 Lakhs (~23.6% effective rate).