Surya Roshni Limited (SURYAROSNI) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Surya Roshni Limited Q4-F526 Earning Conference Call. This conference call may contain certain forward-looking statements about the company which are based on beliefs, opinion, and expectations of the company as on date of this call. These statements are not guaranteed of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. I now hand the conference over to Mr. Raju Vista, Managing Director. Thank you, and over to you, sir.

Thank you very much, and once again, good evening, everyone. On behalf of Surya Roshni Limited, I once again extend a very warm welcome to everyone for joining us today evening. On this call, we were joined by Mr. B.B. Singhal, CFO and Company Secretary, Mr. Gaurav Jain, CEO, Steel Division, and Vashwamitra Pandey, CEO, Lighting and Consumer Durable. Mr. Naresh Singhal has also joined us, Executive Director, Steel and SGA, our Investor Relations and Advisor. I hope everyone had an opportunity to go through the financial results. Moving on to the overall financial performance highlight, in Q4 FY26, our consolidated revenues stood at 2163 crore, remaining broadly stable year on year. EBITDA for the quarter stood at 170 crore, with margins of 7.9%, reflecting sequential improvement driven by better realization and improved some product mix. Pay for the quarter stood at 98 crore. And for the full year FY26 consolidated revenue stood at 7,540 crore as compared to 40 crore as of March 30. We have declared a final dividend of Rs. 2.5 per share, demonstrating our ongoing commitment to delivering shareholder value. This is in addition to the interim dividend of Rs. 2.5 per share already distributed. Coming to the lighting consumer durable. The lighting and consumer durable segment deliver growth during Q4 FY26 with a revenue of 501 crore. I am particularly pleased to highlight that March 2026 was our A milestone that reflects the enduring strength of the Surya brand and depth of our distribution network. EBITDA for the water stood at 44 crores with margins of 8.8% broadly stable despite some input cost pressure. For FY26 as a whole, segment revenue grew by 7% year-on-year, 2 rupees 1809 crore, while EBITDA at 156 crore. Professional lighting business achieved double digit revenue, growth at 473 crore for the full year. Being 26% share in the total revenue of lighting segment and ended Q4 FY26 with an order book of 160 crores providing healthy near-term execution visibility. In wire and cable, the business closed at Rs.38 crores in FY26. We are now fully end-to-end manufactured in this category with our 180-meter real specs in the market and our DBT-enabled electrician loyalty program fully operational. Our FY27 revenue target for the wire and cable business is 260 crore firmly on trade with three years guidance of 500 to 600 crore roofless business. Overall, we are targeting value growth of 22 to 25% in lighting annually and consumer development segment overall over the medium term, supported by deeper distribution penetration and premiumization and continued investment in brand building. Coming to the steel pipe and strip segment, the steel pipe and strip segment deliver a resilient sequential performance during Q4 FY26 despite continued geographical geopolitical disturbances and volatility across market. Revenue for the... Quarter stood at Rs.1662 crore, even, as year-on-year performance was impacted by elevated steel prices, volatility, and the complete absence of export on account of the Middle East's current crisis. Please. Volume for the quarter. For the quarter, it stood at 126 crore with EBITDA per ton. For the full year FY26, for the steel business, the business reported revenue of 5731 crore, reflecting stable year-on-year performance. Overall volume, suit up at 9.04 lakh ton, a growth of 3% year-on-year on volume terms. The capacity utilization of 78 to 80% was maintained throughout the year, even in a challenging operating environment, and most importantly, the value added product contributed 43% of overall volume during the year FY26. On export, our business expended... The call is strengthening order visibility across North America and Europe. Export stood at 1.3%. The current order book of steel division is about 1000 crore plus, led by export, spiral and some domestic API orders, providing strong visibility for H1 F527, which is expected to be the highest ever. Looking ahead to FI26, we are targeting overall volume of 11 lakh tons, representing growth of nearly 21 to 22 percent. Over to FY26, supported by improving utilization level, phase commissioning of new capacities, and strong contribution from value-added products. We remain confident that the current global supply chain realignment presents a structural long-term opportunity for it. The Surya Roshni is a very efficient Indian manufacturers with integrated capabilities. And we are well positioned to capture.

For the quarter, the revenue was 2,163 crore as compared to 2,146 crore, a growth of 1% year-on-year basis. A beta and pet stood at Rs. 170 crore and Rs. 98 crore respectively as compared to Rs. 211 crore and Rs. 130 crore respectively. For FY26, the revenue was Rs. 7540 crore as compared to Rs. 7,436 crore, a growth of 1% Y-on-Y basis. EBITDA and PET stood at Rs. 541 crore and Rs. 286 crore as compared to Rs. 609 crore and Rs. 347 crore, respectively. In Lighting and Consumer Durable, for the quarter, the revenue stood at Rs.501 crore as against Rs.458 crore, a growth of 9% on 5-on-5 basis. EBITDA and PBT stood at Rs.44 crore and Rs.33 crore as compared to Rs.47 crore and Rs.37 crore. For FY26, the revenue stood at Rs. 1,809 crore as against Rs. 1,690 crore, a growth of 7% on Y-on-Y basis. EBITDA and PBT stood at Rs. 156 crore and Rs. 115 crore in FY26. Rs. 162 crore and Rs. 125 crore respectively in the same period last year. In the steel pipes and strips, during Q4 F526, the revenue was Rs. 1662 crore as compared to Rs. 1688 crore. Similarly, beta per metric transferred at Rs. 5,121 crore compared to Rs. 688 crore. 6,708 in the same period last year. Beta and PBT stood at Rs 126 crore and Rs 98 crore as against Rs 164 crore and Rs 138 crore respectively. For FY26, the revenue was Rs 5,731 crore as compared to Rs 5,749 crore. Similarly, beta per metric ton stood at Rs 4,553 compared to Rs 5,392. Beta and PBT stood at Rs 385 crore and Rs 269 crore in FY26 as against Rs 446 crore and Rs 341 crore respectively in the same period last year. Improved capacity utilization, working capital optimization, and cost rationalization enabled us to become a zero debt company and having cash surplus fund of Rs.337 crore in F526. In Q4 FY26, our net working capital cycle was 58 days, with a return on capital employed, ROCE, of 20.76%, and a return on equity, ROE. of 15.23% and on yearly basis, networking capital cycle was 66 days with a return on capital employed ROCE of 15.93% and a return on equity ROE of 11.21%. With this, I conclude the presentation and we can now open the floor for further questions and answers.

We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Aditya Pal from MSA Capital Partners. Please go ahead.

Hello, how are you?

Yes.

Hi, thank you so much for the opportunity. Sir, what happened this quarter? We have told you that our FI26 performance was better. In the last quarter, we have told you that Q4 will be very strong for us. We'll be doing close to five and a half thousand to six thousand of EBITDA-PATTA in our steel business, and even when I look at volumes, volume b, but then it cannot be the market as well because all our competitors have actually given a very strong Q4. It's not even, it's not even, When we see the difference, it's not like 2-3%. There's a humongous difference. So, and I've been asking this question again and again that, is there something on the ground where you're seeing a difference, what the competitors are doing, that they're able to grow, and we are not able to. So, if we can just talk about this, I have another question I'll ask after this.

Yeah, Mr. Paul, thank you very much. Look, mainly, what we had set the target, but we all know that the middle age crisis was in February, so immediately, our export was almost nil. In the export account, our supply was reduced by 12,000 tons, which was the material ready, and that was a major mistake. Thank you. Thank you. Overall, as the Middle East crisis was, there was a crisis in India and India, because of the raw material was a shortage. Otherwise, you will see throughout the year, which we have been in the whole year, the Steel Division, our first quarter FY26, because of the SAP implementation, it was a setback. So, if we consider it, otherwise, throughout the year, we have maintained our EBITDA and profitability and volume. And, I mean, I can give you this hope that FY26, whatever situation we have in Middle East crisis, Good morning, everyone, and welcome to the call. We are going. So, you mean that this year, you will get the growth in the bumper volume and the improvement on the EBITDA front.

Sir, I agree. I agree. But you said this same thing two quarters before us. And we said that, okay, Raduji will say it or you will say it right. But you said that 12,000% missed because of the state of Osmos crisis. These 12,000 tons have been booked in Q1?

Yes, I will tell you one more. This is good for us. There is an American market opened. There are already 65,000 tons of material booked. Every month, our 10,000 tons has already been added. So, you will see me in the comments. Last year, our exports were about 1.5 lakh tons. Thank you. This is a value-added product. Already, we have 43% total volume in value-added, or to sustain this volume in any company is very difficult for any company. In this case, we have about 9-10,000 per EBITDA per ton. This is the whole segment that we are exporting.

Thank you.

Thank you. And when we had 9,000,000 tons, we were very reasonable to consider the volume growth. We will be able to buy a pipe from the pipe segment. And when our EBITDA was 385 crore, Good morning,

everyone, and welcome to the call. We are seeing new demand in India. We are seeing new demand in India because of the pipeline of city gas distribution. We are seeing new growth in the US. We are seeing new growth in the Middle East, because we are talking about that pipeline. So overall, we are talking about demand and how we capture that demand.

Do you think in India you are right, that there is an emergency room, or a city gas distribution, overall demand has been increased. But somehow, in the last year FY26, FY25, the numbers are looking at the numbers. FY26, when the water distribution program has been in the US, the water distribution program has been in the US, the water management program has been in the US and the US, and the budget is around 55,000 crores. Thank you. Welcome, somehow, we are maintaining it until now, and what will be America, will see a substantial improvement in the export business.

Okay, sir.

Wishing you all the very best. What do you want to talk about?

Thank you. Participants, you may press star and want to ask questions. Next question is from the line of Love Gupta from Counter Cyclical Investments. Please go ahead.

Thank you for the opportunity, sir. So, I wanted to understand, is there any update on the de-merger of the lighting and consumer durable business,

and, you know, what is the expected timeline, any progress on that front? No, I think that the crisis is going to end, and hopefully we will talk to the next board meeting and talk to the board, but the overall, the external environment is not so friendly. Thank you. And we have maintained this a little quality business, a little export-oriented, a little value-added, a little high-margin, it's all maintained. So overall percentage, you will see and compare it to peer. Still, pipe business, EBITDA percentage, I think it's very good. And I say that our bank ended up with just the shareholder, and our relationship is only with the shareholder. So, we also ensure that the corporate actions will be their own. But today, we have decided that the total profitability of the shareholder will get the dividend. And the one third is the growth of the business. And the one third is the growth of the business. So, one-third capex, one-third working capital, growth, and one-third shareholder, we have maintained this in the past 2-3 years.

Sir, the second question was that now we have 340 crore net cash surplus and our stock valuation is quite reasonable. So, there is some buyback, some plans, some...

We will come to you very soon.

Thank you.

Thank you. Participants, you may press star and want to ask questions. You may press star and want to ask questions. Next question is from the line of Viraj Mehta from Enigma Investment Partners, LLP. Please go ahead.

Yeah, hi, sir. Hello, sir. Sir, after Q3, we were not able to achieve that also, and this is, sir, like, third quarter in a row, that something comes from a loss. So, first of all, it is very disappointing a little bit that what we say is that we don't understand that it's not one quarter, but it's not one quarter. It's just a feedback to you. Sir, second, you said we will have 11,000,000 ton. So, there are two questions. One, if you are doing 10,000,000 ton incremental with sports, then are we doing 70-80,000 ton? This is not our aspiration as far as growth in domestic markets.

Thank you. Q1, I think the highest volume will be the highest volume. I mean, it's about 2,500,000 tons of volume in quarter one. And approximately 27-30% of our population will grow. What were you asking for?

Sir, I had another question. If you are talking about 9.2 lakhs to 11 lakh tons inside, while you are talking about 1.1 lakh tons of growth, volume, then you are talking about 70 lakhs in the domestic market. This is not a very low expectation. This is not a very low cost of growth.

Viraaj bhai, I'll tell you about $12,000,000, but then you asked me if you were going to get $12,000,000, so I'll tell you about it. I'll tell you about it, so I'll tell you about it. I'll tell you about it, so I'll tell you about it. Another question is that this is the government spending on oil and gas. So this year, we're going to be going on a little bit. This year, we're going to be less. I'm sorry, everyone, and welcome to the call. Thank you. Thank you. Good morning, everyone, and welcome to the call of the call

of the call of the call of the call of the call of the call of the call. And that is, in spite of higher exports, which is a large margin business, ATI, which is a large margin business, then how are you doing? I mean, I understand. I mean, it's about 10 to 50.

No, this is the same thing. We are going to say that there will be a little pressure on the oil and gas. Good morning, everyone, and welcome to the call. Thank you.

So, sir, this is a substantial decrease in EBITDA per time, because this year also, for the full year, we have done higher than that. In fact, in Q4, we have done 5,100. So, you know, there will be more traffic from EBITDA per time. But sir, no steel producer or pipe producer is not talking about it. My comment is different from the story. I don't have to understand that. If you have a problem with APL or Apollo, you don't have to talk about it. No one wants to talk about it. 400 rupees is not talking about it.

No, it's such a fact that in full year, if you look at it, it's not less than it is, it's more than it is, full year, number one. Number two, see, input cost is increased, and the new level is low, it's about 30-40 crore rupiah impact on every company, it's just not the cost of fuel and power, it's about the impact on every company. So, all the things we have considered, we have told you that we have told you that we have had a certain number of numbers, so we have considered them, and we have a certain number of numbers. And if you look at the whole year, there is a little improvement. Don't compare Q4 and Q1 to the whole year, because generally, Q4 is the highest quality of the quarter, because of many reasons, maybe the festival or closing year is the quarter.

You mean FY27, right?

Yes, FY27.

So, sir, last question. You said that in Q1, we will be able to get 2.65 lakhs in Q1. So, if I get 47-4800, then we will be able to get 125 crore EBITDA from this quarter. Thank you, sir.

Next question is from the line of Pratik Singhhania from Sage1 Investments. Please go ahead.

Sir, hi sir. Sir, if we look at our past 5 years' history, the cumulative growth of the entire 5 years, I won't talk about the year-on-year. Cumulative growth of our team segment is approximately 25% in the 4th year, which is approximately 6-6% of the volume growth. So, sir, India is growing so well, the rest of the competitors and companies are growing so well. What is the problem with us? Something is happening with us, which is only 6% of the CAGR growth in the past 4 years.

No, this is what we have done. We have been doing this for the COVID-19 pandemic. We have been doing this for the past year and now we are doing this for the past year. Thank you. Thank you. Thank you.

So, I'll give you the data of FI21 and FI26 data, and I'll give you the decision to the FI26. So, we have the weakest EBITDA pattern in FI26. First, we did FI21, then FI22 was 9,000. Then FI23 was 12,000, then FI24 was 10,000, then FI26 was 9,300. So, my name is 5,600. Sir, our value-added segment, which should grow, EBITDA per turn, this is our FI20 degree, and now it's about 5,600 rupiah.

No, if you look at IAPI spiral, the bottom of EBITDA is reduced. I'm calling an early number, sir. No, no, I'm sorry, I'm sorry, the first time it was almost a level, it was $10. One reason is that it's a tendering business that doesn't exist in our control. There's a lot of competition in the past years. There's a lot of pressure in government spending. Thank you. Thank you.

So, sir, how much our volume is in domestic, how much our volume is dependent on the government's spending? How much of our government has given us the government, which has given us the government, contracts, and construction? How much of our volume is in government-related spending? The total of the steel type of the segment is 15 to 16 percent.

I'm talking about your company. Yes, I'm talking about our company. I'm talking about the technique I'm talking about. Overall, our product segment, the government, API, or tender business contribution is 15-16% of our customers. So, so 15-16% if it's so low,

then you will need to interfere. Thank you.

Thank you.

Thank you, sir. I'll come back in the kitchen, sir.

Thank you. Participants, please limit your question to only two questions per participant. Should I have a follow-up question, we request you to rejoin the queue. Next question is from the line of Kiran from Table 3 Capital. Please go ahead.

Thank you for the opportunity. Sir, two questions are. First question, ONGC or other oil companies, which was our opportunity in terms of Uh, uh, seamless, uh, to ERW, right? Uh, it's supposed to be a large opportunity. Q3 mein, humne 4,500 tons kiye hain. There is just too much focus on oil and oil price and, you know, I don't know, exploration because of fire oil prices. So yeh joh seamless to ERW, even without any new capex honne wala hai, uh, which is a very large opportunity and there It's just tremendous value for us. Kuch traction ho raha hai sir. Ye FI 27 mein, will we be able to gain substantial volumes? Is that low pricing or high pricing? It's good.

Thank you.

Got it. Got it. So, the 11 lakh tons doesn't include any volumes from this opportunity?

No, no. It's not considered. It's not considered because we have capexed. It's almost 9-10 years ago. So, it's still in the FI 28th.

Sir, the second question is, from a growth perspective, if I see the EBITDA, and I'm sure the feedback from all the other previous participants are also well taken, in terms of EBITDA, we have stagnated for 4-5 years now, sir. So, we are now again at 535, 540 crore. So, we are going to jump to 540 crore to 700 crore in FI27. So, hope that happens, sir. And how much confidence we have that we will jump to 700 crore. That is point question number one. Question number two, we are listening to getting steel from steel companies these days has become very difficult across the industry because there is just too much steel demand or steel prices are very high and so on and so forth. So because we are one of the largest buyers of HR coil, what is our impact in Q1, Q2 in terms of steel buying? So these are two questions. One is EBITDA stagnation to 700 crores. What are the risks and how confident you are? Point number two, steel buying, is there any constraint in the market? Because multiple industrial companies are talking about this constraint that they're not getting steel as much as they require.

Good morning, everyone. Good morning, everyone, and welcome to the call. Good morning, everyone, and welcome to the call.

Got it. Thank you so much. Thank you.

Participants, please limit your question to only two questions per participant. Should I have a follow-up question, we request you to rejoin the queue. Next question is from the line of Saaket Kapoor from Kapoor & Co. Please go ahead.

Yeah. Namaskar Rajuji. My voice is still coming. Hello. For our stream pipes. You also expect the EBITDA to be 400-480 crores. Is this the right number?

Right, right. Yes.

Okay, so the remaining EBITDA number of 200 crores will be in our lighting segment.

I will tell you a little bit about this year. Overall, the lighting. And in this case, there will be approximately 72 crore in the steel division, and in the lighting division, there will be approximately 200 crore. So, it will be approximately 9,400 crore to 9,500 crore overall revenue in this year. Company as a whole करीब 24% से 25% की ग्रोथ करेंगे हम लोग, और इसी तरह से बिटा के अंदर में करीब स्टील डिविजन में 480 करोड के है, लाइटिंग में करीब 200 करोड के है, मतलब ये 680 करोड के आसपास कराएगा, इसमें भी जो है 25-26% की ग्रोथ रहेगी. So, this is something that we have already considered, because we have seen some gas, some new labor law, that has 40-50 kronka impact on every company. So, we have considered that number. So, this number, we have 700,000.

So, we have two points that we have high-value products in which our Furt and EBITDA will remain significantly higher. But overall, Furt and EBITDA will be 4,700 per 10. Thank you.

Good morning, everyone, and welcome to the call. Thank you. Thank you. Good morning, everyone, and welcome to the call. So, in this three months, there has been a lot of impact in every industry, and every industry has been affected by it.

Thank you sir. Thank you sir. Thank you sir.

Thank you. Next question is from the line of Yogesh from Magnus. Please go ahead.

Thank you so much for taking my question, sir. Just as you mentioned, what did you say to the previous participant? We have done a lot of capacity additions over the last one and a half years. And before that, we didn't have so much focus on the capacity additions. And our focus was on cash generation and being debt-free. So if you can elaborate, that in the next 1-2 years, we are entering the capacity additions in the cycle of capacity additions. And given that our cash flow has a lot of right cash flow and the balance sheet position is very strong, so can we see a massive capacity addition from the business in the next two years? And over the last two years, how many capacity additions have been? These details will be very good for you.

Thank you sir.

So, now 1.2 is our capacity, and it will be 1.9 in two years.

We have reached 4 million, 1.2 was 1.2 something, now 1.4 something, already our capacity has been enhanced. In the next year, in the next year, we will be 1.6 million tons.

Okay, so 1.2, say 1.6, okay, and, okay, thank you, that was my question.

Thank you. Ladies and gentlemen, we'll take that as our last question for today. I now hand the conference over to Mr. B.B. Singhal for his closing comments. Thank you, Anupam.

Thank you for joining us today on this earnings call. We appreciate your interest in Surya Roshni Limited. I sincerely once again thank our ambitors and the CEOs for spending their valuable time and addressing queries raised by participants who attended the call. For any further queries, if any, you can contact SGA, our Investor Relations Advisor. Thank you. Good evening. Thank you.

He's saying profit. Thank you.

Thank you. On behalf of Surya and Lakshmi Limited that conclude this conference, thank you for joining us, and you may not disconnect your lines.