Surya Roshni Ltd Q4 FY26 Earnings Analysis

- Steel division volume guidance for FY 2026: minimum 11,00,000 tonnes, reflecting ~17-18% growth from current ~9.35-9.4 lakh tonnes. - Expected EBITDA per tonne in Steel division: minimum Rs 5,000 in FY 2026. - Projected Steel division EBITDA for FY 2026: Rs 540-550 crores. - Lighting division sales for Q3 FY 2026: Rs 476 crores; expected to grow 15% next year, targeting overall turnover around Rs 2,100 crores. - Lighting division EBITDA target for FY 2027: Rs 200 crores. - Total consolidated EBITDA expected to reach Rs 750 crores by FY 2027 after consistent growth. - CAPEX of around Rs 250 crores in existing plants to support growth. - Professional Lighting order book of Rs 150-160 crores with 3-4 month execution timeline aiding visibility. - Export market adjustment expected with compensation from Middle East and Africa to offset EU CBAM impact.

Future growth expectations for Surya Roshni Limited as per the discussion on page 11 include: - Steel division targets around 9.35 to 9.40 lakh tonnes volume for current year; aiming for 11 lakh tonnes in FY 2026 with 17%-18% growth. - EBITDA per tonne in Steel division expected to be at least Rs 5,000 in FY 2026. - Steel division EBITDA guidance of Rs 540-550 crores for FY 2026. - Lighting division revenue crossing Rs 1,800 crores this year; expected growth of 15% next year. - Overall turnover projected at around Rs 2,100 crores in FY 2026. - Lighting EBITDA targeted at Rs 200 crores in FY 2026. - Consolidated EBITDA expected to improve, aiming for Rs 750 crores by FY 2027. - Buyback of shares is under consideration to permanently increase EPS. - Market uncertainties and external macro factors acknowledged, but strong balance sheet and cash surplus provide confidence in growth. These points reflect a positive outlook for earnings, operating profits, and EPS growth going forward.

- Surya Roshni has ongoing internal projects worth Rs 160 crores. - A work order of about Rs 100 crores is expected to be issued within the next week or 10 days. - Total CAPEX for existing plants is around Rs 250 crores. - Capacity expansion is underway for the Wire business in the Lighting division due to strong demand. - Investments are being made to increase export volumes of Hollow Sections, especially targeting Middle East and African markets. - New DFT lines are being installed at plants in Anjar, Gwalior, Bahadurgarh, and Hindupur to support growth in Hollow section and Structural pipes. - The company is focusing strategically on shifting API Seamless Pipes to ERW technology, considered a significant future opportunity.

- Surya Roshni Limited currently operates as a zero-debt company with a cash surplus of Rs. 245 crores as of nine months FY 2026. - The company has expressed no immediate requirement to raise funds through debt or equity, as indicated by management's emphasis on a strong balance sheet and cash surplus. - Future capital expenditure (CAPEX) needs will be met internally; aside from necessary CAPEX, there is no intent to maintain large cash reserves by raising external funds. - Management is focused on optimizing working capital and cost rationalization without dependence on external fundraising. - No explicit plans for new fundraising through debt or equity were mentioned during the earnings call.

- As of the end of Q3 FY 2026, the order book for the Steel division stood at approximately Rs 500 crores. - The Lighting division had an order book of around Rs 150 crores to Rs 160 crores. - The Lighting division order book has an execution timeline of 3-4 months, with some orders extending till April. - New additions are expected in the Lighting order book. - The Lighting segment margins are better in the B2B infrastructure projects compared to Consumer Lighting. - Infrastructure-related Lighting orders include sectors like airports, railways, tunnels, stadiums, and façade lighting. - The company anticipates completing most orders within a quarter, with higher order inflow typically seen in the 4th quarter due to budget utilization.