NewsEarningsSurana Telecom Reports Strong Q1 Results, Reappoints Managing Director, and Divests Stake in SubsidiarySurana Telecom Reports Strong Q1 Results, Reappoints Managing Director, and Divests Stake in Subsidiary
Surana Telecom & Power reported a 72.60% YoY increase in standalone profit for Q1, reaching ₹271.84 crore. Consolidated net profit rose 34.60% to ₹244.87 crore. The company reappointed Narender Surana as Managing Director for three years and proposed Sanjana Jain as an Independent Director for its subsidiary. The board approved divestment of 7% stake in Aryavaan Renewable Energy Private Limited, which will cease to be a subsidiary post-transaction.
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Surana Telecom & Power , a key player in the renewable energy and infrastructure sectors, has announced robust financial results for the first quarter, along with significant management changes and strategic decisions.
Financial Performance
The company reported a substantial increase in standalone profit for Q1, reaching ₹271.84 crore compared to ₹157.53 crore in the same quarter last year, marking a 72.60% year-on-year growth. Total income also saw a healthy rise, climbing to ₹530.02 crore from ₹469.95 crore in the previous year, representing a 12.80% increase.
The consolidated financial results paint an equally positive picture:
| Particulars (in ₹ crore) | Q1 FY2026 | Q1 FY2025 | YoY Change |
|---|---|---|---|
| Revenue from Operations | 414.36 | 437.70 | -5.30% |
| Total Income | 741.86 | 706.67 | 5.00% |
| Profit Before Tax | 299.57 | 224.54 | 33.40% |
| Net Profit | 244.87 | 181.90 | 34.60% |
The company's performance was particularly strong in its 'Infra & Others' segment, which reported a profit before interest and tax of ₹71.78 crore, up from ₹40.43 crore in the same quarter last year.
Management Changes and Strategic Decisions
The Board of Directors has reappointed Narender Surana as Managing Director for a further period of three years, effective from May 23, 2025, to May 22, 2028, subject to shareholder approval. Mr. Surana, with over 37 years of experience in the telecom cable, metals, and solar industry, has been a key figure in the company's growth and strategic direction.
The Board has also proposed the appointment of Sanjana Jain as an Independent Director on the board of Aryavaan Renewable Energy Private Limited, a material unlisted subsidiary of the company. Mrs. Jain, a qualified Company Secretary with expertise in corporate law matters, is set to bring valuable insights to the subsidiary's governance.
In a significant strategic move, the company's board has approved the divestment of its 7% equity stake in Aryavaan Renewable Energy Private Limited, a material subsidiary. This transaction requires shareholder approval through a general meeting before execution. Upon completion, Aryavaan Renewable Energy will cease to be a subsidiary of Surana Telecom. The buyers are Arun Kumar Kedia and Navkar Solar Power Systems LLP, who belong to the promoter/promoter group. The consideration will be determined at fair value by an independent chartered accountant as per Income Tax Act provisions.
Aryavaan Renewable Energy contributed 6.27% to Surana Telecom's net worth and 22.92% to its turnover in FY 24-25. The transaction qualifies as a related party transaction.
Segment Performance
The company operates in two primary segments:
Renewable Energy (Solar): This segment generated revenue of ₹326.77 crore in Q1, contributing significantly to the company's overall performance.
Infra & Others: This segment reported revenue of ₹88.59 crore, showing steady performance.
Surana Telecom & Power's focus on renewable energy aligns with the growing global emphasis on sustainable power sources, positioning it well for future growth opportunities in the renewable energy and infrastructure sectors.
Historical Stock Returns for Surana Telecom & Power
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.71% | -13.63% | +11.32% | +6.06% | -14.60% | +450.67% |
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