SURYAROSNI - Surya Roshni

📊 NSE: SURYAROSNI 🏢 Steel - Large 📅 Last Updated: 12/14/2025 13:57

💰 Financial Performance

Revenue Growth by Segment

In Q2 FY26, the Steel Pipe and Strip business grew 24% YoY, while the Lighting and Consumer Durable segment grew 10% YoY to INR 434 crores.

Geographic Revenue Split

Exports grew 45% in volume and 29% in value terms during Q2 FY26, contributing to the highest ever Q2 volumes in the company's history.

Profitability Margins

Q2 FY26 Gross Profit margin was 21.6%. Profit After Tax (PAT) margin improved to 4.0% from 2.2% YoY, driven by better realization and product mix.

EBITDA Margin

EBITDA margin improved to 7.6% in Q2 FY26 from 5.4% in Q2 FY25, with absolute EBITDA rising 69% YoY to INR 141 crores.

Capital Expenditure

The company plans to incur capex of INR 600 crores over the next 2-3 years, of which INR 400 crores is for greenfield expansion, funded entirely through internal accruals.

Credit Rating & Borrowing

Long-term bank facilities upgraded to CARE AA; Stable from CARE AA-; Positive. Short-term facilities reaffirmed at CARE A1+.

⚙️ Operational Drivers

Raw Materials

Steel coils and strips represent the primary raw material for the steel division; components for LED lamps and consumer durables are the primary inputs for the lighting division.

Capacity Expansion

Current steel segment capacity utilization is at 80% as of Q2 FY26. Full-year volume guidance is recalibrated to approximately 10 lakh tons.

Raw Material Costs

Raw material costs for H1 FY26 were INR 2,677 crores. Falling steel prices in July 2025 led to a notional inventory loss of INR 500 per ton, which was offset by operating efficiencies.

Manufacturing Efficiency

EBITDA per ton in the steel segment improved by 73% YoY to INR 5,013 per ton in Q2 FY26 due to higher operating leverage.

Logistics & Distribution

The company maintains an omni-channel presence and a strong distribution network to support steady growth in lighting and consumer durables.

📈 Strategic Growth

Expected Growth Rate

22%

Growth Strategy

Growth is driven by a higher share of value-added products like API pipes (which grew 86% YoY), aggressive export expansion (45% volume growth), and a INR 400 crore greenfield expansion plan.

Products & Services

API Pipes, ERW Pipes, GI Pipes, LED lamps, battens, street lights, and consumer durables.

Brand Portfolio

Surya

New Products/Services

API Pipes grew 86% YoY in Q2 FY26, significantly contributing to the value-added product mix.

Market Expansion

Focusing on strong export growth and technology upgradation to reinforce leadership in core segments.

Market Share & Ranking

The company is one of the most reputed and successful in the steel pipe and lighting sectors in India.

🌍 External Factors

Industry Trends

The steel pipe industry is seeing volumetric growth aided by infrastructure demand; the lighting industry is growing at ~8% with a shift toward LED and smart solutions.

Competitive Landscape

Faces competition from domestic steel pipe manufacturers and international pricing pressure from Chinese imports in lighting.

Competitive Moat

Durable advantages include cost leadership through backward integration, a strong household brand name ('Surya'), and an extensive distribution network.