Surya Roshni Q2 FY27 Revenue Up 33% YoY

Consolidated Financial Performance Highlights

Surya Roshni Limited reported unaudited financial results for the quarter and half-year ended September 30, 2026.

Q2 FY27 Performance (Consolidated):

Revenue: ₹2,448 crore, up 33% YoY (from ₹1,845 crore in Q2 FY26) and up 20% QoQ (from ₹2,046 crore in Q1 FY27)
EBITDA: ₹143 crore, up 1% YoY (from ₹141 crore) and up 19% QoQ (from ₹120 crore)
EBITDA Margin: 5.8%, down 180 bps YoY (from 7.6%) and down 10 bps QoQ (from 5.9%)
Profit Before Tax (PBT): ₹103 crore, up 4% YoY (from ₹100 crore) and up 28% QoQ (from ₹81 crore)
Profit After Tax (PAT): ₹77 crore, up 3% YoY (from ₹74 crore) and up 29% QoQ (from ₹60 crore)

H1 FY27 Performance (Consolidated):

Revenue: ₹4,495 crore, up 30% YoY (from ₹3,450 crore)
EBITDA: ₹263 crore, up 18% YoY (from ₹223 crore)
EBITDA Margin: 5.9%, down 60 bps YoY (from 6.5%)
PBT: ₹184 crore, up 27% YoY (from ₹145 crore)
PAT: ₹136 crore, up 26% YoY (from ₹108 crore)

Margin moderation was attributed to higher input costs, extended producer responsibility (EPR) payments, and planned step-up in brand investment. Q2 FY26 benefited from one-time pre-buying by European and Canadian customers in Steel Pipes ahead of CBAM and quota implementation.

Segment-wise Performance

Lighting and Consumer Durables Segment

Q2 FY27 Performance:

Revenue: ₹507 crore, up 17% YoY (from ₹434 crore) and up 11% QoQ (from ₹456 crore) - highest-ever Q2 revenue
EBITDA: ₹40 crore, up 1% YoY (from ₹39 crore) and up 11% QoQ (from ₹36 crore)
EBITDA Margin: 7.8%, down 120 bps YoY (from 9.0%) and stable QoQ
PBT: ₹28 crore, down 6% YoY (from ₹29 crore) and up 16% QoQ (from ₹24 crore)

H1 FY27 Performance:

Revenue: ₹964 crore, up 16% YoY (from ₹832 crore)
EBITDA: ₹76 crore, up 8% YoY (from ₹70 crore)
EBITDA Margin: 7.8%, down 60 bps YoY (from 8.4%)
PBT: ₹51 crore, up 1% YoY (from ₹51 crore)

Volume Growth Drivers (Q2 FY27):

Ceiling fans: up 26% YoY
Water heaters: up 26% YoY
Mixer grinders: up 20% YoY
Table, pedestal and wall fans (TPW): up 18% YoY
LED bulbs: up 11% YoY (higher-wattage bulbs up 24%)

Wires & Cables revenue rose to ~₹50 crore in Q2FY27 from ~₹38 crore in Q1FY27, taking H1FY27 revenue to ~₹88 crore.

Professional Lighting has an order book of over ₹200 crore, providing strong execution visibility for H2FY27.

Steel Pipes and Strips Segment

Q2 FY27 Performance:

Revenue: ₹1,941 crore, up 38% YoY (from ₹1,411 crore) and up 22% QoQ (from ₹1,590 crore)
Sales Volume: 2.67 lakh tonnes (record quarterly), up 23% YoY and 17% QoQ
EBITDA: ₹103 crore, up 1% YoY (from ₹102 crore) and up 22% QoQ (from ₹84 crore)
EBITDA/MT: ₹4,105, down 18% YoY (from ₹5,013) and up 2% QoQ (from ₹4,006)
PBT: ₹75 crore, up 7% YoY (from ₹70 crore) and up 33% QoQ (from ₹57 crore)
Capacity Utilization: 84% (improved from 82% in Q1FY27)

H1 FY27 Performance:

Revenue: ₹3,531 crore, up 35% YoY (from ₹2,618 crore)
Sales Volume: 4.96 lakh tonnes, up 22% YoY
EBITDA: ₹188 crore, up 22% YoY (from ₹154 crore)
EBITDA/MT: ₹4,059, up 1% YoY (from ₹4,037)
PBT: ₹132 crore, up 40% YoY (from ₹95 crore)

Export Performance (Q2 FY27):

Export volumes: 64,408 tonnes, up 64% YoY and ~52% QoQ
Contribution: ~24% of segment volumes (vs ~18% in Q1)
US volumes more than doubled QoQ

Value-added products contributed approximately 48% of segment volumes in Q2FY27. Order book stands at ~₹1,200 crore, including ~1 lakh tonnes of export orders worth ~₹850 crore (of which ~80,000 tonnes are API pipes) for execution in H2FY27. Domestic API order book has built up to ~20,000 tonnes.

Management Commentary

Mr. Raju Bista, Managing Director:

Highlighted record performance with consolidated revenue growth of 33% YoY to ₹2,448 crore. Noted strong visibility for H2FY27 with combined order book of over ₹1,400 crore across both businesses. Company remains on track to deliver FY27 targets.

Mr. Vinay Surya, Managing Director:

Detailed manufacturing depth and backward integration initiatives. PCB capacity rising from 25,000 sq m to 40,000 sq m, with machinery due within six weeks. Decision on another 20,000 sq m due by December 2026. Aiming to make 80% of appliances in-house by FY30 (about 10% today). Wires & Cables targeting ₹250 crore in FY27 and ₹500 crore within three years. Professional Lighting targeting about ₹900 crore by March 2030.

Mr. Bharat Bhushan Singal, CFO:

Reported Net Working Capital cycle of 63 days, Return on Capital Employed (ROCE) of 15.74%, and Return on Equity (ROE) of 11.35%. Company continues to be zero-debt with cash surplus of ₹75 crore as on September 30, 2026.

Strategic Initiatives and Outlook

Steel Pipes Expansion:

Three new DFT mills: Anjar (Gujarat) commissioned in October 2026, Malanpur (Gwalior) in December 2026, Bahadurgarh in January 2027
Hindupur: First 60,000 TPA mill operational by March 2027, two more during FY28
Installed capacity to reach ~16.5 lakh tonnes by March 2027
Capex: ~₹150 crore in FY27 and ~₹150 crore in FY28 (funded through internal accruals)
Targets: 14 lakh tonnes in FY28 at EBITDA/MT of ~₹4,500-4,600; 20 lakh tonnes by FY30

Lighting & Consumer Durables Guidance:

FY27: 22-23% value and 25% volume growth (~₹2,200 crore revenue, ₹200 crore EBITDA)
FY28: ~20% value growth
Through FY30: ~15% CAGR with EBITDA margins of ~9%

Cost Initiatives:

Manpower, fuel and energy initiatives saved ~₹500 per tonne
Targeting ₹1,100 per tonne reduction on full-year basis
Rooftop solar: 3 MW at Malanpur and Kashipur saving ~₹20-21 lakh/month
Additional 1 MW at Bahadurgarh by mid-January 2027 (taking steel solar capacity to ~4 MW)
1 MW more planned at Hindupur

Financial Position

Zero-debt company
Cash surplus: ₹75 crore as on September 30, 2026
Net Working Capital cycle: 63 days
ROCE: 15.74%
ROE: 11.35%