Surya Roshni Limited (NSE: SURYAROSNI) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
Raju Bista — Managing Director
B. B. Singal — Chief Financial Officer & Company Secretary
Analysts:
Unidentified Participant
Viraj — Analyst
Jatin — Analyst
Aditya Pal — Analyst
Keshav Garg — Analyst
Neil — Analyst
Raj Mehta — Analyst
Presentation:
operator
Ladies and gentlemen, Good day and welcome to Surya Roshni Limited Q1FY26 earnings conference call. This conference call may contain forward looking statements about the company which which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchtone phone.
Please note that this conference is being recorded. I now hand the conference over to Mr. Raju Bista, Managing Director of Surya Roshni Limited. Thank you. And over to you sir.
Raju Bista — Managing Director
Thank you very much. Am I audible?
operator
Yes sir.
Raju Bista — Managing Director
Thank you very much and good evening. Good afternoon everyone. On behalf of Sudar Rosni Ltd. Once again I extend a very warm welcome to everyone for joining us today in call. On this call we are joined by Mr. B.B. singhal, CFO and Company Secretary Mr. Gaurav Jain who is newly appointed as a CEO of Steel Business. Mr. Vasumitra Pandey, newly appointed CEO for Lighting and Consumer Delivery. Mr. Naresh Singhal, Executive Director, Steel Division and Nashville, our investor relation advisor. I hope everyone had an opportunity to go through the financial results of today. Moving on to the overall financial performance highlight, we are pleased to share the consolidated performance of Sureya Roshni Limited for the first quarter of FY financial year 26.
In Q1 FY 26 our consolidated revenue stood at 1605 crore down 15% year on year while EBITDA came in at 83 crore representing a 48% decline over last year. For the same quarter our EBITDA margin was at 5.14% compared to 8.37% in Q1 FY25 reflecting the impact of softer commodity prices, muted execution of certain government projects and seasonal demand factors linked to the early onset of monsoon in Steel Division. Company has implemented the SAP HANA software with effect from 1st of April 2025. However, there were initial disruptions in SAP implementation integration process and other teething troubles in April and few days in May also which resulted the sale loss to the tune of 25,000 to 30,000 metric ton in Q1 FY26 which approximately value about 180 to 200 crore.
The steel pipe and steel segment saw headwinds from delayed fund dispersion in domestic project market and raw material price volatility, but export volumes has grew by 23% year on year led by strong demand from the Middle east sector. The lighting and consumer durable business delivered a modest revenue increase supported by healthy double digit volume growth in LED lamps, baton and water heater product category despite pricing pressures in certain categories. While our top line and margin were under pressure this quarter, our diversified business mix, operational disciplines and healthy order book provide a solid foundation for recovery in the coming quarters.
We have continued to invest in strategic initiatives including capacity expansion, product innovation and brand building. Now we are zero debt company with a net cash surplus of 331 crore as of June 30th, 2025. Coming to Lighting and Consumer Durable in Q1FY26, our Lighting and Consumer Durable segment posted revenue of 397 crore up by 3% year on year basis driven by strong volume growth. Despite industry headwinds, EBITDA stood at 31 crore versus 35 crore last year with margin at 7.8% compared to 9%, a slight decline due to price erosion in consumer lighting. Early monsoon led demand volatility and moderated government procurement in professional lighting products.
Margin are expected to recover supported by festival demands, premium product offering and upcoming launches in professional lighting. We maintain an order book of above 100 crores. Our pipeline of 2, 3 new categories and a diversified product portfolio should help meet FY26 target despite slower government spending. Our 25 crore house domestic wire cable facility in Gwalior plant will launch on 18th August this month targeting about 150 crore in the first year and scaling to about 500 crore in next two to three years period. For FY26 we maintain in lighting division our double digit growth guidance. With capacity expansion, new product and alignment with government initiatives, we are well positioned to grow both domestically and internationally even in lighting.
Also focusing on premium product category, operational efficiencies and strong channel engagement onto the steel pipe and steel division in the Q1 FY26, our steel pipe and strip segment operated in a challenging environment marked by subdued domestic demand, raw material pricing, volatility and the early onset of monsoon. While revenue stood at 1207 crore down 20% year on year while EBITDA declined to 52 crore from 24 crore. EBITDA per turn was 2,922 to rupees per ton lowered by 52% year on year basis mainly due to lower high margin Product contribution, inventory losses from steel pipe segment and muted project demand.
Overall volume flew volume fell 13% year on year with domestic product segments volume down nearly about 30% due to slower government project execution. Funding constant and software API and spiral pipe demand. The monsoon description causing causing buying in trade and actual user segments amid expectations of further steel pipes softening also weight and demand. In contrast export rose by about 23% year on year. Despite geopolitical challenges driven by strong Middle east shipment including Holo Section 5 aligned with our overseas growth strategy, we closed the quarter with a healthy 750 to 800 crore order book across oil and gas and water even in export also including large DIA coated pipe water for water infrastructure.
Execution of pending order is expected between July to September adding Q2 and Q3 recovery operationally. Our cold rolling mill was commissioned in June this year although its contribution to Q1 FY26 was minimal to about 6,000 tonnes during the month. But we’ll expand our product range and margin and as volume ramp up. Capacity utilization for overall steel segment was 68% in Q1 and should improve in the coming quarters. Our expansion program is on track. The 60,000 capacity of DFT forming technology mill at Anjar Bhuj will Commission by March April 26. I am pleased to announce that we have appointed Mr.
Surya Kumar Yadav T20 Captain of Indian Cricket team as a brand ambassador. A strong name synergize with data line with our brand building push. We continue to invest in publicity and marketing to strengthen our domestic and export presence. Looking ahead, we expect steel prices to remain broadly stable or see a slight uptick with no major downside. GI order should improve from quarter two as government project pick up. With a strong order book, growing export capacity enhancement and brand investment, we are confident that our performance will improve in from quarter two onwards. This was from my side.
Now I will request our CFO Mr. Bibi Singhal to share his thoughts on the result.
B. B. Singal — Chief Financial Officer & Company Secretary
Thank you respected MB sir and a very good evening to all the participants on the call. For the quarter the revenue was 1605 crore as compared to 1893 crore. Beta and Path stood at rupees 83 crore and rupees 34 crore as compared to rupees 159 crore and rupees 92 crore respectively in lighting and consumer durables. For the quarter the Revenue stood at rupees 397 crore as against rupees 385 crore, a growth of 3% year on year basis, Beta and PPT stood at rupees 31 crore and rupees 21 crore respectively. In the steel pipe and strips during Q1FY26 the revenue was 1207 crore as compared to 1509 crore.
Similarly, EBITDA per metric ton stood at rupees 2922 compared to rupees 6065. EBITA and PPT stood at Rs. 52 crore and rupees 24 crore. Improved capacity utilization, working capital optimization and cost rationalization enabled us to become a zero rent company and having cash surplus fund of rupees rupees 331 crore as of June 25th. With this I conclude the presentation and we can now open the floor for further questions and answers.
Questions and Answers:
operator
Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mr. Viraj from Enigma Investment. Please go ahead, sir.
Viraj
Yeah. Hello sir. Sir, my first question is. In your May 15 and May 14 presentation you had mentioned that we will grow by more than 20% in the full year. You had also mentioned that our EBITDA looks to be around 5,500. And this is when half the quarter was gone of last quarter. And we did not talk about any disruption from SAP implementation or lower sales coming due to government tightening the budgets. It’s just very contradictory. When half the quarter is gone and the tone is very different from what the results you have reported. Can you just elaborate how did things change so dramatically? Or we just missed completely the showdown.
Raju Bista
1St of April pipe division may particularly product meter kilograms pay forecast substantial growth in terms of volume or in terms of EBITDA.
Viraj
Sorry. Thank you for your answer. Sade Patso Rupee first quarter may.
Raju Bista
As. A forecast 35 to 38% or overall commitment Kia fulfill Kia or Salbar.
Viraj
Right sir. Second question. Lighting last year complete erosion.
Raju Bista
Simultaneously or lighting Division Particularly commercial B2B business. Particularly a project margins come originally dependency. In fact conventional lighting.
Viraj
Range provides kara.
Raju Bista
Domestic violence segment with Torah launching me also maybe because of late arrival of planted machinery. Quarter two May Pachpanzo Karna Perega Quarter three or four May Chancho Next quarter.
Viraj
Maker Loga Confident.
Raju Bista
Or Q2.
Viraj
Right sir. Or Sir. Last question. So it’ll be very helpful.
Raju Bista
Involvement.
Viraj
Up drastic Improvement. Thank you. Best of luck.
operator
Thank you. The next question is from the line of Mr. Jatin from Swan Investment. Please go ahead.
Jatin
Thank you for the opportunity contribution as compared to last year or previous quarter.
Raju Bista
So FY26 trade contribution or train segment lose Kia.
Jatin
Okay. Next quarter growth in month of July or category wise.
Raju Bista
Overall company as a whole.
Jatin
Right. Pass as compared to 1.9 lakh ton in Q1. Okay.
Raju Bista
Previous year May 1.74. Okay. 1.65 last for second quarter. 6 point some few thousand tons books we have.
Jatin
What is the scenario that we are seeing it? Second half will be much stronger.
Raju Bista
So now coming to Q2 overall order book overall environment domestic because of monsoon or agriculture. Something which is looking much more on the aggressive side. So we’ll wait for the Q2. Thank you.
Jatin
Thank you.
operator
Thank you. The next question is from the line of Mr. Aditya Pal from MSA Capital Partners. Please go ahead.
Aditya Pal
Hi. Thank you so much for the opportunity Steel pipe industry and Hamlogna Mutamoti market share lose way so Hamlog distribution distributors.
Raju Bista
So particular quarter because of ARP Otherwise. Not just that single single competitor but Charlie May as yay is the best in the industry. Is it a distribution problem solve connect. Recovery margin Vala Torah export or Torah in product category particularly. Correct.
Aditya Pal
Wishing you all the very best before the FY26 perfect.
Raju Bista
Thank you so much.
Aditya Pal
That will be very helpful. So all the very best. Thank you for letting me.
Raju Bista
Thank you sir.
operator
Thank you. The next question is from the line of Mr. Keshav K but before we take that question participants if you wish to ask a question you may press star and 1. The next question is from the line of Mr. Keshav Garg from Counter PMS. Please go ahead sir.
Keshav Garg
35% volume growth last year FY25 expectation. But sir Amara Q2 volume disappointment GST collection year to date FY26 kind of capacity that is coming on stream.
Raju Bista
We will be able to achieve what you are planning to achieve. Because of. Various reasons maybe technical issues or this company particularly Club or Hamari case of Erpkarani. Steel pipe segment. Hardly few companies.
Keshav Garg
Right sir? Right sir. Steel prices, economy, demand or industry. Best of luck.
operator
Thank you. The next question is from the line of Mr. Neil from Equity Capital. Please go ahead.
Neil
Hello.
operator
Yes sir. Please go ahead.
Neil
For each product category.
Raju Bista
Volatility, Jada predict Nikar Sate or Uski Vajra fluctuation atah so HR kolka price they think 4948 cash for children to measure limbs keyboard Mainly because of that Reason only.
Neil
Okay. Okay sir then.
operator
Thank you. Participants, if you wish to ask a question you may press star and one on your touchstone telephone. The next question is from the line of Mr. Raj Mehta from Raj Mehta Associates. Please go ahead sir.
Raj Mehta
But conservative basis in case there’s a quarter one may spending government spending. Government spending pick up nine to. Thank you very much.
Raju Bista
The future. Because of tariff uncertainty log orders. Globally clarity uncertainty particularly 5 city but section 232 domestic consumption immediately pharmaceutical maybe 75% additional bold development trade dialogue. Just because sustainable demand. Okay answer manager domestic regarding Pujata government spending for last I think aggressively government spending or a quarter maybe government spending capacities optimal capacity domestic related Koibi risk future. Or water pipe segment. Kabi APNA experience Kia Hajab Koitna order book Milta Toska cancellation Onika chances. Honestly speaking or. Market share. Number one number two opening and dominating player. Okay answer up which competitors Learnings learning industry aggressively. Central India Western Bombay side me Amari present.
Raj Mehta
Okay sir. All the best and I hope.
operator
Thank you ladies and gentlemen. Due to time constraints that was the last question. I would now like to hand the conference over to Mr. B.B. singhal for closing comments.
B. B. Singal
Thank you everyone for joining us today on this earnings call. We appreciate your interest in Sura Roshni Limited. I sincerely once again thanks over MD sir and the CEOs for sharing their valuable time addressing queries raised by participants who attended the call. For any further queries if any relation advisor thanks. Good evening once again thank you Jay. Thank you very much.
operator
Thank you sir. On behalf of Surya Roshni Limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.