💰 Financial Performance

Revenue Growth by Segment

Revenue from Operations grew by 9.72% from INR 58.892 Cr in H1 FY23 to INR 64.614 Cr in H1 FY24, primarily driven by elevated sales volumes in the steel tubes segment.

Geographic Revenue Split

Not disclosed in available documents; however, the company is headquartered in Gandhinagar, Gujarat.

Profitability Margins

The company turned profitable at the pre-tax level, reporting a Net Profit before tax of INR 2.66 Cr for the half-year ended September 30, 2025, compared to a loss of INR 4.79 Cr in H1 FY24.

EBITDA Margin

EBITDA margin improved significantly by 441 bps from (6.33%) in H1 FY23 to (1.92%) in H1 FY24, reflecting improved operational efficiency despite remaining negative.

Capital Expenditure

Property, Plant, and Equipment (PPE) increased from INR 4.602 Cr as of March 31, 2023, to INR 8.445 Cr as of September 30, 2023, representing a historical capex of INR 3.843 Cr.

Credit Rating & Borrowing

Short-term borrowings were reduced by 100% from INR 34.568 Cr as of March 31, 2025, to zero as of September 30, 2025, significantly lowering interest obligations.

⚙️ Operational Drivers

Raw Materials

Steel (implied as the primary input for steel tubes) represents the core cost component, though specific percentage of total cost is not disclosed.

Capacity Expansion

The company is raising up to INR 98.064 Cr through warrants to expand the scale of operations and strengthen bargaining power; current installed capacity in MT is not disclosed.

Raw Material Costs

Not disclosed as a specific percentage of revenue; however, the company plans to use fundraise proceeds for working capital to improve procurement bargaining power.

📈 Strategic Growth

Expected Growth Rate

9.72%

Growth Strategy

Surani is executing a major fundraise of up to INR 98.064 Cr through the issuance of 72,64,036 fully convertible warrants at INR 135 per share. These proceeds are earmarked for working capital to scale operations, increase sales volume, and strengthen bargaining power with suppliers.

Products & Services

Steel tubes manufactured under certifications IS 1161:2014 and IS 4923:2017, used in construction and core infrastructure projects.

Brand Portfolio

Surani

🌍 External Factors

Industry Trends

The steel tube industry is benefiting from a shift toward standardized, certified products (ISO/IS standards), allowing SME players like Surani to serve major national infrastructure projects.

Competitive Landscape

Competes with other certified steel tube manufacturers; Ratnamani is noted as both a client and a potential industry peer.

Competitive Moat

Surani's moat is built on technical certifications (IS 1161, IS 4923) and a high-profile client list (Tata, Adani, L&T), which are difficult for unorganized players to replicate and ensure recurring B2B demand.

Macro Economic Sensitivity

Highly sensitive to Indian infrastructure and core sector spending, as evidenced by its Tier-1 client base in ports, power, and logistics.

Consumer Behavior

B2B demand is driven by the requirement for high-quality, certified steel components in regulated infrastructure and energy sectors.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by Bureau of Indian Standards (BIS) norms, specifically IS 1161:2014 and IS 4923:2017 for steel tubes.

Taxation Policy Impact

The company recognized a deferred tax liability of INR 14.93 Lakhs for the period ended September 30, 2025.

Legal Contingencies

Not disclosed in available documents; the secretarial audit reports general compliance with the Companies Act 2013.

⚠️ Risk Analysis

Key Uncertainties

Key risks include the successful deployment of the INR 98.064 Cr fundraise into working capital and the management of steel price fluctuations which impact core profitability.

Geographic Concentration Risk

Operations are concentrated in Gujarat, with the registered office and manufacturing presence in Gandhinagar.

Credit & Counterparty Risk

Trade receivables were INR 2.534 Cr as of September 2023; a provision for doubtful debts of INR 20.73 Lakhs was made in H1 2025, indicating active management of credit risk.