1. At a Glance
Q1FY26 wasn’t kind to Surya Roshni — revenue slipped15.25% YoY, and net profit collapsed63.64%. For a company that’s India’s largestERW & GI pipeproducer and #2 in the lighting segment, this quarter looked more like a tripping circuit than a power surge. Management reshuffles in both Steel and Lighting divisions add to the drama — either it’s a strategic refresh or the corporate version of musical chairs.
2. Introduction
Surya Roshni’s story is like two parallel Bollywood plots. One is a gritty industrial saga about steel pipes dominating domestic and export markets. The other is a glitzy consumer play in lighting and durables. When both scripts work, the box office (read: stock price) cheers. But right now, one reel’s running slow, and the audience is checking their watches.
3. Business Model (WTF Do They Even Do?)
- Steel Pipes Division– ERW pipes, GI pipes, 3LPE coated pipes, value-added steel products.
- Lighting & Consumer Durables– LED lamps, streetlights, appliances.
- Dual-segment strategy gives diversification, but also means getting punched by both construction and consumer cycles at once.
- Strong export base in pipes (60% market share in ERW pipe exports).
4. Financials Overview
Quarterly Numbers – Q1 FY26 (₹ Cr)
| Metric | Latest Qtr (Jun’25) | YoY Qtr (Jun’24) | Prev Qtr (Mar’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 1,604 | 1,893 | 2,146 | -15.3% | -25.3% |
| EBITDA | 70 | 151 | 202 | -53.6% | -65.3% |
| PAT | 33.6 | 92.0 | 130.0 | -63.6% | -74.2% |
| EPS (₹) | 1.54 | 4.25 | 5.98 | -63.8% | -74.2% |
P/E ~22.6 – clearly, the market is still valuing them like it’s last year.
Commentary:
A brutal quarter — revenue decline plus margin compression crushed profitability. Lighting might be dim, but pipes also lost water pressure.
5. Valuation (Fair Value RANGE only)
Method 1 – P/E
- EPS (TTM): ₹13.31
- Industry multiple range: 14x–20x → FV ₹186 – ₹266
Method 2 – EV/EBITDA
- EBITDA (TTM): ₹498 Cr
- Net debt ≈ zero → EV ≈ Market Cap ₹6,546 Cr
- EV/EBITDA ~13.1x; fair range 9x–12x → FV ₹230 – ₹307
Method 3 – DCF (simplified)
- Base FCF: ₹350 Cr, growth 5%, 5% terminal, 12% discount → ₹200 – ₹280
Educational FV Range (not advice): ₹190 – ₹300
6. What’s Cooking – News, Triggers, Drama
- CEO exits– Lighting & Consumer Durables CEO resigns. New CEO for Lighting: Vasu Mitra Pandey. New CEO for Steel: Kumar Gaurav Jain.
- Market slump– Both segments saw volume/margin pressure.
- Exports edge–
