Surya Roshni Q4 FY26 earnings call

Surya Roshni reported a consolidated revenue of ₹2,163 crores for Q4 FY26, remaining broadly stable year-on-year, with an EBITDA of ₹170 crores (7.9% margin) and PAT of ₹98 crores. For the full year FY26, consolidated revenue stood at ₹7,540 crores, a marginal increase from ₹7,436 crores in FY25. However, full-year EBITDA decreased to ₹541 crores from ₹609 crores in FY25, and PAT fell to ₹286 crores from ₹347 crores in FY25. The company maintained a zero-debt status with a net cash surplus of ₹337 crores as of March 31, 2026, and declared a total dividend of ₹5.00 per share for FY26.

The Lighting & Consumer Durables segment delivered a Q4 FY26 revenue of ₹501 crores, showing 9% YoY growth, with an EBITDA of ₹44 crores (8.8% margin). March 2026 marked the highest-ever monthly sales for this segment. For the full year FY26, segment revenue grew 7% YoY to ₹1,809 crores, with EBITDA at ₹156 crores. The Professional Lighting business contributed ₹473 crores in revenue for FY26 and has an order book of ₹160 crores for Q4. The Wire and Cable business recorded ₹38 crores in FY26, with a target of ₹260 crores for FY27 and a three-year guidance of ₹500-600 crores. The segment aims for 22-25% annual value growth over the medium term^⏳.

The Steel Pipe and Strip segment's Q4 FY26 revenue was ₹1,662 crores, with a record quarterly volume of 2.6 lakh tons. EBITDA for the quarter was ₹126 crores, translating to ₹5,121 per ton, impacted by geopolitical disruption^🌐s and the absence of exports due to the Middle East crisis. For the full year FY26, the segment reported ₹5,731 crores in revenue and 9.04 lakh tons in volume (3% YoY growth), with EBITDA per ton at ₹4,553. Value-added products constituted 43% of the total volume. For FY27, the company targets an overall volume of 11 lakh tons (21-22% growth), revenue of ₹7,200 crores, and EBITDA of ₹470-480 crores, driven by new export markets like the US and improved utilization.

Surya Roshni has significantly expanded its manufacturing capacity, adding approximately 2 lakh tons in the last 1.5 years. The current capacity, which recently increased from 1.2 million tons to 1.4 million tons, is projected to reach 1.6 million tons by FY27 and further expand to 1.9 million tons by FY28-29. This expansion, coupled with improving utilization levels and a strong contribution from value-added products, is expected to drive the targeted 24-25% overall revenue growth and 25-26% EBITDA growth for FY27. The company is also focusing on the US market, which has opened up for exports, with 65,000 tons already booked and an expected 120,000 tons annually, offering high EBITDA per ton of ₹9,000-10,000.

The company maintains a disciplined capital allocation strategy, aiming to distribute one-third of its profits to shareholders as dividends, one-third for business growth, and one-third for capex and working capital. For FY26, a final dividend of ₹2.50 per share was declared, bringing the total dividend to ₹5.00 per share. The company is also re-evaluating a share buyback, which was previously considered but faced unfavorable government regulations. With a net cash surplus of ₹337 crores and zero debt, Surya Roshni emphasizes its strong financial position and commitment to shareholder value.

Management acknowledged several challenges impacting Q4 FY26, including the Middle East crisis which halted 12,000 tons of exports, a raw material crisis in India, and lower-than-expected government spending on infrastructure projects. For FY27, the company anticipates continued pressure from rising input costs, including a ₹30-40 crore impact from new labor laws, and increased fuel and power costs. Despite these, management expressed confidence in achieving its FY27 targets, stating that all risk factors have been considered in their projections, and that the year is expected to be the 'best year in history' for the company.