Surya Roshni tumbles on steep Q1 earnings decline

Surya Roshni slumped 8.94% to Rs 275.10 after the company posted a sharp drop in profitability for Q1 FY26, weighed down by softer commodity prices, muted government project activity, and seasonal demand weakness.

Net profit came in at Rs 34 crore, down 64% from Rs 92 crore in Q1 FY25. Revenue fell 15% year-on-year to Rs 1,605 crore from Rs 1,893 crore.

EBITDA stood at Rs 83 crore in Q1 FY26, down 48% from Rs 159 crore a year earlier, with margins contracting to 5.14% from 8.37% in Q1 FY25.

Profit before tax (PBT) stood at Rs 46 crore in Q1 FY26, down 63% from Rs 123 crore in Q1 FY25.

In the Steel Pipes and Strips segment, revenue was Rs 1,207 crore versus Rs 1,509 crore in Q1 FY25, registering a 20% YoY decline. EBITDA per metric tonne fell 52% YoY to Rs 2,922 in Q1 FY26. The Steel Pipes segment saw slower execution in government projects, early monsoon, and lower steel prices, though exports managed to deliver strong double-digit growth. The segment ended the quarter with an order book of around Rs 750 crore.

In the Lighting & Consumer Durables segment, revenue stood at Rs 397 crore compared to Rs 385 crore a year earlier, marking a 3% YoY growth. The Lighting & Consumer Durables segment posted modest revenue growth driven by healthy double-digit volume growth in LED lamps, battens, water heaters, and mixer grinders, despite pricing pressures in certain categories. For FY26, the company reiterated its double-digit volume and value growth guidance for this segment.

The company is banking on strategic initiatives such as new product launches, portfolio expansion, and commissioning of advanced manufacturing capacities to support growth and strengthen operating leverage in the remainder of the year.

The company had a cash surplus fund of Rs 331 crore as on 30 June 2025.

Surya Roshni is the largest exporter of ERW Pipes, largest producer of ERW GI pipes and one of the largest lighting companies in India.

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