Surya RoshniQ1 FY27
Surya Roshni Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹220P/E: 15.3Market Cap: ₹4.8K CrSector: Industrial Products
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
N/A
Order
No
Capex
Yes
1 of 4 growth signals are positive — mixed outlook.
Full analysisRevenue guidance
Category 2- →Steel Pipes segment expects volume growth of 20%-22% and value growth of 30%+ year-on-year.
- →Lighting business anticipates 20%-22% growth in sales with INR2,200 crore turnover in FY27 vs INR1,809 crore last year.
- →Overall company revenue guidance for FY27 is INR9,400-9,500 crore.
- →Volume is targeted to increase from 14 lakh tons to 16 lakh tons in pipe segment by end of FY27; expected to reach 20 lakh tons by FY28-29.
- →Annual capacity expansion planned at 2-3 lakh tons, with new DFT mills commissioning between August-December 2026.
- →Export volumes to grow, targeting 3 lakh tons for FY27, with US market share around 10%-11%.
- →EBITDA guidance stands at INR670-680 crore for FY27, maintaining previous estimates.
- →Long-term next 5-year CAGR expectation of 15%-18% growth.
- →Focus on increasing value-added product mix from ~47% towards 60%-80% in future.
Margin guidance
Category 3- →Surya Roshni expects around 22%-23% value growth and approximately 25% volume growth in the lighting segment for FY27.
- →Steel Pipes segment targets an EBITDA of INR 670-680 crore for FY27 with revenues around INR 9,400-9,500 crore.
- →Volume growth of about 20%-22% year-on-year in steel division, with export volumes increasing and capacity expanding.
- →EBITDA per ton guidance for FY27 is INR 4,600 to INR 4,700, with focus on cost reduction initiatives targeting per ton cost cut of around INR 1,100.
- →Capacity expansions will take total steel capacity to 16 lakh tons in FY27 and about 2 million tons by FY28-29.
- →Lighting business turnover expected to grow from INR 1,809 crore (last year) to INR 2,200 crore with EBITDA around INR 200 crore.
- →EBITDA contribution mix: Lighting INR 200 crore, Steel INR 670-680 crore in FY27.
- →15%-18% CAGR growth target for next 5 years with emphasis on value-added products and regional presence expansion.
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Fundraise plans
- →No explicit mention of any current or planned fundraising through debt or equity in the transcript.
- →The company remains a zero-debt entity with a net cash surplus of about INR155 crore as of June 30, 2026.
- →Capacity expansions (e.g., pipe segment expansion costing around INR100 crore and additional 15,000-ton capacity in Hindupur with INR60 crore investment) are being funded through internal accruals.
- →The management referenced working capital being tied up due to steel price fluctuations but did not indicate any need for external funding.
- →Discussions around corporate actions like buyback and demerger are ongoing, but no fundraising through equity or debt was indicated.
- →Overall, Surya Roshni is currently self-financing growth and does not signal plans for external fundraising.
Order book
No- →As of the current quarter, the steel segment order book stands at around INR 800 crore, down from INR 1,000 crore at the end of March.
- →Despite this decrease, the order book now has a higher proportion of exports with improved freight-related pricing.
- →The overall business maintains a consistent order book in the range of INR 800 crore to INR 1,200 crore regularly.
- →Combined lighting and steel businesses have an order book of approximately INR 1,000 crore.
- →Export order book includes fresh orders booked at higher freight rates, reflecting tariff adjustments.
- →There is confidence the order book amount will revert and stabilize in the range of INR 1,000 crore to INR 1,200 crore soon.
- →Export volume guidance includes 2.3 lakh tons currently, moving to 2.6 lakh tons in Q2, 2.8-2.9 lakh tons in Q3, and about 3.2 lakh tons in Q4.
Capex plans
Yes- →**Current Capex:** Approximately INR 100 crore is being invested to increase pipe segment capacity from 14 lakh tons to 16 lakh tons, funded through internal accruals (Page 15).
- →**Upcoming Capacity Expansion:**
- → - Capacity to reach 2 million tons by FY '28-'29 by adding 2-3 lakh tons annually (Page 4, Page 14-15).
- → - Expansion ongoing at three plants (Gujarat, Malanpur, Bahadurgarh) with commissioning of new DFT mills by Dec 2026 (Page 4).
- → - Additional capacity of nearly 3 lakh tons being added in Hindupur, South India, with a setup involving INR 60 crore investment and first mill commissioning by January 2027 (Page 15).
- →**Strategic Investments:** Focus on greenfield projects to strengthen regional presence; clarity expected in next board meeting (Page 14).
- →**Cost-reduction Initiatives:** Automation, energy efficiency, and plant replacement aimed at reducing per ton costs by INR 1,100 (Page 4).
How does Surya Roshni rank vs peers in Industrial Products?
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