Surya Roshni Ltd Q1 FY27 Earnings Analysis

- FY27 revenue is projected at ₹9,400-₹9,500 crores (₹7,200 crores from Steel, ₹2,200 crores from Lighting), a 24-25% growth. - Steel division volume target for FY27 is 11 lakh tons, a 21-22% increase over FY26's 9.04 lakh tons. - Steel capacity to rise from 1.4 million tons currently to 1.6 million tons in FY27 and approximately 1.9 million tons by FY28-FY29. - Exports expected to nearly double from 1.36 lakh tons in FY26 to over 2.5 lakh tons in FY27, with strong order books in North America and Europe. - Value-added products to constitute a higher contribution, maintaining at 43% volume share in FY26 and expected growth ahead. - Lighting segment targets ₹200 crores EBITDA in FY27, with continued double-digit revenue growth anticipated. - FY27 EBITDA for Steel and Lighting combined expected around ₹680-700 crores, a 25-26% growth. - Moderate growth assumptions due to cautious outlook on government spending and external risks factored into guidance.

- For FY27, Surya Roshni Limited projects combined EBITDA of ₹680-700 crores, a 24-26% growth over FY26. - Steel division EBITDA expected around ₹470-480 crores on a volume of 11 lakh tons. - Lighting division EBITDA estimated at ₹200 crores. - Volume in steel pipes expected to grow from 1.4 million tons to 1.6 million tons in FY27, and further to 1.9 million tons by FY28-FY29. - Export volumes, particularly to North America, are expected to nearly double, providing higher-margin business and boosting EBITDA per ton. - Despite current challenges, management is confident FY27 will be the best year in the company’s 50-year history. - EPS and profits projected to grow significantly due to capacity expansions and value-added product mix. - Risks like government spending delays and raw material cost volatility have been factored into guidance.

- Surya Roshni has undertaken significant capacity additions over the last 1.5 years, increasing capacity by about 2 lakh tons. - Current capacity is around 1.4 million tons, expected to increase to 1.6 million tons in FY27. - Further capacity expansion to approximately 1.9 million tons is planned by FY28-FY29, adding around 3 lakh tons. - New capex projects will take about 9-10 months to impact volumes, with some benefits anticipated starting FY28. - Focus on high-value, export-oriented, and value-added products continues, supported by export orders (e.g., 65,000 tons booked for North America). - Capex allocation is structured: one-third for capex, one-third for working capital, and one-third returned to shareholders as dividends. - Discussions on strategic corporate actions like demerger of Lighting and Consumer Durables are ongoing but delayed due to external environment. Overall, Surya Roshni is entering a new phase of growth driven by this planned capacity expansion and targeted investments.

- There is no mention of any current or planned fundraising through debt or equity in the provided transcript. - The company has become a zero-debt company and holds a net cash surplus of around ₹337-340 crores as of FY26. - They are focused on utilizing cash surplus for business growth, capex, and shareholder returns rather than raising new funds. - A buyback of shares is being considered now that government regulations have become favorable, but no concrete plan has been announced yet. - No new debt or equity fundraising is indicated in the call, and the company emphasizes maintaining a strong balance sheet without debt.

- The Steel Division currently has an order book of approximately ₹1,000 crores. - This order book is driven by exports, spiral pipes, and some domestic API orders. - The order book provides strong visibility for the first half of FY27. - Lighting segment had an order book of ₹160 crores at the end of Q4 FY26, indicating healthy near-term execution visibility.