Surya Roshni Limited disclosed significant increases in resource consumption and waste generation for the financial year ended March 2026, as detailed in its Business Responsibility and Sustainability Report (BRSR). The company’s total energy consumption rose to 677,293.33 Giga Joules, up from 561,660.25 GJ in the previous year. This increase was driven primarily by higher fuel consumption, which jumped to 332,266.21 GJ from 229,033.65 GJ, partially offset by a slight decline in renewable electricity usage.

Operational Metrics

The company’s revenue mix remains heavily weighted toward its steel business. Steel pipes and tubes accounted for 67.98% of total turnover, followed by lighting products at 23.99% and cold rolled strips at 8.03%. Exports contributed 13.90% to the entity’s total turnover.

Environmental Impact

Waste generation increased sharply to 10,427.46 metric tonnes, compared to 7,647.74 MT in FY25. Hazardous waste, including ETP sludge and zinc ash, constituted the largest share at 5,796.93 MT, up from 3,738.77 MT. The company recovered 4,246.43 MT through recycling, reusing, or other recovery operations, while 5,788.80 MT was disposed of via landfilling or other methods.

Greenhouse gas emissions also rose. Scope 1 emissions reached 20,591.64 metric tonnes of CO2 equivalent, up from 14,687.98 MT. Scope 2 emissions stood at 53,021.43 MT, slightly higher than the previous year’s 51,271.49 MT. Air pollutant emissions saw mixed trends: Sulphur oxides (SOx) increased to 26.52 tons/year from 5.95 tons/year, while particulate matter decreased to 10.08 tons/year from 23.73 tons/year.

What the Numbers Show

The divergence between renewable electricity consumption and total energy usage highlights a growing reliance on non-renewable fuels. While renewable electricity fell marginally, fuel consumption surged by over 45%, driving the overall 20% increase in total energy intake. This shift suggests that operational expansion or process changes in FY26 were more fuel-intensive than grid-electricity dependent.

Governance and Social Indicators

The company reported no complaints related to sexual harassment, discrimination, child labour, or forced labour during the year. It paid a fine of ₹7.2 lakh to stock exchanges for delayed compliance regarding director composition. Employee training coverage remained consistent, with 38.27% of employees trained on health and safety measures. The company sources 15.25% of its input material directly from MSMEs and small producers, up from 9.29% in the prior year.

Surya Roshni reported a 77% year-on-year surge in consolidated net profit to ₹60 crore for Q1FY27, driven by robust volume growth and margin expansion in its core Steel Pipe & Strips business. Revenue from operations rose 28% to ₹2,046 crore, while EBITDA expanded 46% to ₹120 crore. The Board of Directors, meeting on August 11, 2026, declared a final dividend of ₹2.50 per share for FY26 with August 21, 2026, as the record date, signaling strong cash generation capabilities amidst operational leverage.

The unaudited financial results were reviewed by statutory auditors Ashok Kumar Goyal & Co., who issued an unmodified limited review report pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board also approved the re-appointment of Jai Prakash Agarwal as Executive Chairman and Vinay Surya as Managing Director for five-year terms, subject to shareholder approval at the 53rd Annual General Meeting scheduled for September 15, 2026.

Financial Performance Highlights

The company’s top-line growth was supported by both operating segments, with Steel Pipe & Strips contributing the majority of revenue. EBITDA expanded to ₹120 crore, reflecting improved operational efficiency. The following table details the key consolidated and standalone financial metrics for Q1FY27:

Standalone revenue from operations stood at ₹2,046 crore (₹2,04,630 lakh), up from ₹1,604 crore (₹1,60,441 lakh) in the previous year’s quarter. Standalone profit after tax rose to ₹59 crore (₹5,948 lakh) from ₹34 crore (₹3,360 lakh).

Segment-wise Analysis

The Steel Pipe & Strips segment remained the primary growth engine, generating ₹1,590 crore in revenue, up 32% from ₹1,207 crore in Q1FY26. This segment delivered its strongest Q1 volume performance in recent years, growing 21% YoY to 2.28 lakh tonnes. Growth was led by section pipes (up 38% YoY), ERW API pipes (up 207% YoY), spiral non-API water pipes (up 36% YoY), pre-galvanised (GP) pipes (up 53% YoY) and cold rolled steel pipes (up 30% YoY). Value-added products contributed approximately 47% of overall volumes, while exports accounted for approximately 20% of segment volumes. The order book across trade, exports, API and spiral pipes stood at approximately ₹800 crore, including 78,000 tonnes of export API orders for the US market.

The Lighting & Consumer Durables segment recorded its ever-highest Q1 sales value with revenue rising to ₹456 crore from ₹397 crore, delivering an EBITDA margin of 7.9%. Growth was supported by sustained appliance demand and broad-based volume growth across LED bulbs, battens, downlighters, appliances and professional lighting. Professional lighting ended the quarter with an order book of approximately ₹150 crore. In Wire & Cables, enrollments under the Direct Benefit Transfer Electrician Loyalty Program reached 36,000.

Governance and Corporate Actions

The Board approved the re-appointment of Jai Prakash Agarwal as Whole-time Director designated as Executive Chairman for a period of five years from January 1, 2027, to December 31, 2031. Additionally, Vinay Surya was re-appointed as Managing Director for five years from October 26, 2026, to October 25, 2031. Both appointments are based on the recommendation of the Nomination and Remuneration Committee and require shareholder approval. During the quarter, 21,080 stock options were exercised under the SRL Employees Stock Option Schemes of 2018 and 2021, resulting in the transfer of an equal number of equity shares from the Surya Roshni Employees Welfare Trust to employees.

Forward-Looking Guidance and Capacity Expansion

Management reaffirmed its full-year FY27 guidance, targeting total revenue of ₹9,400-9,500 crore and consolidated EBITDA of ₹670-680 crore. For Q2FY27, the company expects EBITDA of around ₹150-160 crore. In the Steel division, volume targets are set at 2.6-2.65 lakh tonnes for Q2, with quarterly volumes expected to rise to 2.8-2.9 lakh tonnes in Q3 and 3.2 lakh tonnes in Q4. Export contribution is projected to increase from 20% to 25% of total steel segment sales, driven by new ERW API pipe orders in the US market.

Capacity expansion remains a key strategic pillar. Three new DFT mills are being commissioned across Gujarat, Malanpur, and Bahadurgarh plants between August and December 2026. The company plans to add 2-3 lakh tonnes of capacity annually, targeting 16 lakh tonnes in FY27 and approximately 2 million tonnes by FY28-29. An additional investment of ₹60 crore is being made in Hindupur, Andhra Pradesh, to expand capacity by nearly 3 lakh tonnes, with commissioning expected in January 2027. Total capex for current expansions is estimated at ₹100 crore, funded from internal accruals.

What the Numbers Show

The disproportionate growth in net profit (77%) relative to revenue (28%) indicates significant operating leverage. In the Steel Pipes & Strips business, EBITDA per tonne surged 37% YoY to ₹4,006 from ₹2,922, driven by capacity utilization reaching approximately 82% and a shift towards higher-margin value-added products. Meanwhile, the Lighting segment successfully passed on an input cost increase of ~7% during the quarter with minimal impact on profitability. The company’s balance sheet remains strong, with a net cash surplus of ₹154 crore as on June 30, 2026, and a Net Working Capital cycle of 72 days. Management noted that ocean freight headwinds impacted Q1 EBITDA by ~₹800 per tonne, but this effect is expected to normalize in subsequent quarters as new orders incorporate revised freight rates.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE335A01020/dd6bb3a8-4ebd-4c21-8c57-26979dfb1d40.pdf