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

Surya Roshni has laid out a comprehensive set of growth targets for FY27, spanning its lighting, wires and cables, and steel pipes businesses. The company's guidance reflects a multi-segment expansion strategy anchored by volume-led growth in lighting, a structured revenue ramp-up in wires and cables, and aggressive capacity additions in its pipes business.

Lighting Segment: Targeting Double-Digit Value and Volume Growth

Surya Roshni is aiming for 22% to 23% value growth and 25% volume growth in its lighting segment for FY27. These targets underscore the company's intent to grow both the top line and unit sales simultaneously, reflecting confidence in demand conditions within the domestic lighting market.

Wires & Cables: ₹250 Crore Revenue Target as Part of Three-Year Plan

In the wires and cables segment, the company has set a revenue target of ₹250 crore for FY27. This forms part of a larger ₹500 crore three-year plan, indicating that the FY27 target represents a key milestone within a structured, medium-term growth roadmap for this business vertical.

Exports and U.S. Market Contribution

Surya Roshni projects total exports of 3 lakh tonnes for FY27. Within this, the U.S. market is expected to contribute 1.2 to 1.25 lakh tonnes, making it a significant export destination. The following table summarizes the export targets:

Steel Pipes: EBITDA Guidance and Capacity Expansion

On profitability and capacity, Surya Roshni has provided detailed targets for its steel pipes business. The company aims for an EBITDA of ₹4,600 to ₹4,700 per tonne for FY27 and plans to increase annual capacity by 200,000 to 300,000 tonnes. The capacity expansion roadmap is outlined below:

The phased capacity build-out reflects the company's long-term commitment to scaling its steel pipes operations, with FY28-29 serving as the horizon for reaching approximately 2 million tonnes of annual production capacity.

Key Highlights

• Lighting segment targets 22%-23% value growth and 25% volume growth for FY27
• Wires & cables revenue target of ₹250 crore for FY27, part of a ₹500 crore three-year plan
• Total exports projected at 3 lakh tonnes for FY27; U.S. market to contribute 1.2 to 1.25 lakh tonnes
• EBITDA target of ₹4,600 to ₹4,700 per tonne for the steel pipes business in FY27
• Capacity to reach 1.6 million tonnes by FY27 and around 2 million tonnes by FY28-29