Financial Performance Overview
Suraj Limited reported challenging financial results for FY26 with consolidated revenue declining 10.94% to ₹205.85 crores and net profit falling 43.85% to ₹7.47 crores. Standalone performance showed similar trends with revenue at ₹205.85 crores (down 10.94%) and PAT of ₹7.26 crores (down 37.98%). The company attributed the decline to industry-wide challenges including raw material price volatility, margin pressure, fluctuating steel demand, higher energy and logistics costs, and competitive market conditions.
Key Financial Metrics & Ratios
Financial ratios deteriorated significantly across multiple metrics: Return on Equity fell to 5% (from 9%), Debt Service Coverage Ratio declined to 0.34 (from 0.47), and Net Profit Ratio dropped to 4% (from 7%). Inventory turnover declined 44.33% to 3.66 due to increased average inventory. The company maintained current borrowings of ₹60.30 crores with HDFC Bank at 8.00% p.a., secured by charges on current and fixed assets.
Corporate Actions & AGM Details
The Board declared and paid an interim dividend of ₹1.50 per equity share. The 33rd Annual General Meeting will be held on June 26, 2026 to adopt financial statements, reappoint Mr. Kunal Tarachand Shah as director, and seek approval for material related party transactions with TBS Metal Private Limited (₹100 crores annually) and Suraj Enterprise Private Limited (₹50 crores unsecured loans).
Operational & Ownership Structure
The company manufactures stainless steel seamless pipes, tubes, and fittings with applications in pharmaceuticals, dyes, oil, gas, and refinery industries. Promoters hold 75% of shares with major shareholders including Anilaben Ashokkumar Shah (19.43%), Chandrika Kunal Shah (15.79%), and Rekhaben Gunvantkumar Shah (12.76%). The company maintains investments in associate Suraj Enterprise Private Limited valued at ₹1,545.06 lakhs.
Contingent Liabilities & Disputes
Contingent liabilities stood at ₹22.65 crores, primarily comprising disputed excise/custom duty demands (₹16.81 crores) and sales tax disputes (₹5.76 crores). The company is engaged in various tax disputes with authorities, though no material adjustments were required in the financial statements.
Governance & Compliance
The company has complied with corporate governance requirements under SEBI LODR Regulations, with minor observations in secretarial audit report regarding technical submission issues. CSR spending exceeded requirements at ₹53.00 lakhs against ₹48.80 lakhs obligation. The statutory audit report contained no qualifications or adverse remarks.
Subsequent Events & Outlook
No material events occurred between March 31, 2026 and the report date (May 7, 2026). The company continues to face headwinds from raw material volatility and competitive market conditions while maintaining operations through its two manufacturing facilities in Mehsana, Gujarat.