Any current/future new fundraising through debt or equity?

Surya Roshni Limited is funding its ₹500 crores capex entirely through internal accruals; no new debt is planned. The company has a cash surplus of around ₹160 crores as of Q1 FY25 and is keeping the surplus as fixed deposits. There is no indication of planned equity fundraising or debt issuance in the current documents. The lighting and consumer division requires minimal additional capex (₹5 crores next year), with most investments focused on the steel division. The company aims to maintain a zero-debt status, optimizing working capital, and generating internal cash flows for expansio

Any current/future capex/capital investment/strategic investment?

₹500 crores capex planned over FY25 and FY26, fully funded from internal accruals. ₹100 crores capex in FY25 for: - Spiral unit in Gwalior (60,000 tons capacity increase) - Cold rolling and 8-inch ERW pipe mill in Bahadurgarh (50,000 tons capacity increase) Remaining ₹400 crores capex includes: - Large-dia pipe unit in Hindupur (~₹75 crores, +1 lakh tons capacity) - LDP pipe unit in Anjar (~₹75 crores, +1 lakh tons capacity) - New greenfield plant near Mumbai, Maharashtra (~₹250 crores) – expected to ramp up in FY26 Q3/Q4 Lighting and consumer division capex minimal;

Future growth expectations in sales/revenue/volumes?

Lighting & Consumer Durables segment: - Expected revenue growth of 12%-15% for FY25 driven by rising consumer aspirations and government infrastructure/industrial capex. - Focus on higher margin products and cost management to achieve EBITDA target of ₹180 crores. - Volume growth around 20% in downlighters and batons; professional lighting segment growing at 18%-20%. Steel Pipe segment: - Anticipated volume growth of 12%-15% in FY25. - Capacity expansion adding 110,000 tons annually (50,000 tons from Bahadurgarh cold rolling & ERW mill; 60,000 tons from Gwalior spiral pl

Future growth expectations in earnings/operating earnings/profits/EPS?

**Lighting Division:** - Target EBITDA for FY25: ₹180 crores, focusing on higher-margin products, cost management, and leveraging PLI benefits. - EBITDA margin expected to reach 12% within two years (improved from 10% currently). - Q1 FY25 lighting EBITDA grew 5%, with margin expected to increase over the year. **Steel Division:** - Expected volume growth of 12%-15% in FY25. - EBITDA per ton expected to improve from current ~₹6,000 up to ₹7,000-₹8,000 in coming years, driven by value-added products. - Full impact of capacity expansions (110,000 tons/year) to be seen from Q3 FY25.

Current/ Expected Orderbook/ Pending Orders?

Surya Roshni Limited has an order book of approximately ₹600 crores. This order book is largely from the oil and gas segment. The company is expanding capacity with a focus on higher value-added steel products. Capacity enhancements include a combined 50,000 tons annual increase from Bahadurgarh unit’s cold rolling and ERW mill. An additional 60,000 tons capacity expansion is underway with a spiral plant in Gwalior, expected to be operational by Q3. Full impact of the combined 1,10,000 tons capacity increase will be seen next year starting Q3.

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Surya Roshni LtdQ2 FY24Industrial Products

Surya Roshni Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹262P/E: 16.6Market Cap: ₹5.3K CrSector: Industrial Products

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Order

N/A

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Lighting & Consumer Durables segment:
→ - Expected revenue growth of 12%-15% for FY25 driven by rising consumer aspirations and government infrastructure/industrial capex.
→ - Focus on higher margin products and cost management to achieve EBITDA target of ₹180 crores.
→ - Volume growth around 20% in downlighters and batons; professional lighting segment growing at 18%-20%.
→Steel Pipe segment:
→ - Anticipated volume growth of 12%-15% in FY25.
→ - Capacity expansion adding 110,000 tons annually (50,000 tons from Bahadurgarh cold rolling & ERW mill; 60,000 tons from Gwalior spiral plant) starting Q3 FY25.
→ - Focus on higher value-added products increasing EBITDA/ton from current ₹6,000-7,000 to a target of ₹8,000.
→ - Order book strong at ₹600-700 crores, mainly from oil and gas sector.
→Overall:
→ - EBITDA growth expected to be more than 20% for the next 2 years.
→ - Incremental capacity and product mix enhancements to drive sustainable growth.

Margin guidance

Category 3

→**Lighting Division:**
→ - Target EBITDA for FY25: ₹180 crores, focusing on higher-margin products, cost management, and leveraging PLI benefits.
→ - EBITDA margin expected to reach 12% within two years (improved from 10% currently).
→ - Q1 FY25 lighting EBITDA grew 5%, with margin expected to increase over the year.
→**Steel Division:**
→ - Expected volume growth of 12%-15% in FY25.
→ - EBITDA per ton expected to improve from current ~₹6,000 up to ₹7,000-₹8,000 in coming years, driven by value-added products.
→ - Full impact of capacity expansions (110,000 tons/year) to be seen from Q3 FY25.
→ - Steel EBITDA target for FY25: ₹675-700 crores.
→ - Q1 FY25 EBITDA/MT stood at ₹6,065, up 38% YoY.
→**Overall Company:**
→ - EBITDA growth expected >20% for next two years.
→ - Q1 FY25 EBITDA grew by 36% YoY.
→ - Focus on expanding value-added and professional lighting segments backed by government infrastructure spends.

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Fundraise plans

→Surya Roshni Limited is funding its ₹500 crores capex entirely through internal accruals; no new debt is planned.
→The company has a cash surplus of around ₹160 crores as of Q1 FY25 and is keeping the surplus as fixed deposits.
→There is no indication of planned equity fundraising or debt issuance in the current documents.
→The lighting and consumer division requires minimal additional capex (₹5 crores next year), with most investments focused on the steel division.
→The company aims to maintain a zero-debt status, optimizing working capital, and generating internal cash flows for expansions.

Order book

→Surya Roshni Limited has an order book of approximately ₹600 crores.
→This order book is largely from the oil and gas segment.
→The company is expanding capacity with a focus on higher value-added steel products.
→Capacity enhancements include a combined 50,000 tons annual increase from Bahadurgarh unit’s cold rolling and ERW mill.
→An additional 60,000 tons capacity expansion is underway with a spiral plant in Gwalior, expected to be operational by Q3.
→Full impact of the combined 1,10,000 tons capacity increase will be seen next year starting Q3.

Capex plans

Yes

→₹500 crores capex planned over FY25 and FY26, fully funded from internal accruals.
→₹100 crores capex in FY25 for:
→ - Spiral unit in Gwalior (60,000 tons capacity increase)
→ - Cold rolling and 8-inch ERW pipe mill in Bahadurgarh (50,000 tons capacity increase)
→Remaining ₹400 crores capex includes:
→ - Large-dia pipe unit in Hindupur (~₹75 crores, +1 lakh tons capacity)
→ - LDP pipe unit in Anjar (~₹75 crores, +1 lakh tons capacity)
→ - New greenfield plant near Mumbai, Maharashtra (~₹250 crores) – expected to ramp up in FY26 Q3/Q4
→Lighting and consumer division capex minimal; ₹25 crores invested via PLI scheme mostly completed.
→Capacity expanding from 12 lakh tons to 19 lakh tons by FY26, focusing on higher-margin, value-added steel products.
→Commercial operations for major capex to commence by Q3 FY25 and FY26, enabling volume growth and margin improvement.

How does Surya Roshni Ltd rank vs peers in Industrial Products?

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