Surya Roshni Ltd Q2 FY26 – Zero Debt, ₹1,845 Cr Sales, 106% Profit Jump, and a Pipeline So Hot It Could Weld Itself
1. At a Glance
Surya Roshni Limited, the desi juggernaut of steel pipes and lighting, has done what most CFOs only dream of — gone practically debt-free while clocking ₹1,845 crore in sales this quarter and doubling profits year-on-year. At ₹276 a share and a market cap of ₹6,005 crore, Surya is looking less like a commodity player and more like that well-oiled manufacturing beast your portfolio secretly wishes it had married into.
A 106% jump in quarterly profit, a fat ROCE of 20.7%, and a dividend yield of 1.56% — all while its nearest competitors are busy financing “strategic” losses. From steel to light, Surya’s glow is spreading faster than Diwali discounts. With an enterprise value of ₹5,724 crore, it’s flexing an EV/EBITDA of 9.7x, which for a zero-debt company in a cyclical industry is basically a humblebrag written in balance sheet language.
You think 60% export market share in ERW pipes is impressive? Wait till you realise they also make ceiling fans that could probably cool down their EBITDA growth.
2. Introduction
There are companies that build brands. And then there’s Surya Roshni, a 50-year-old warhorse that built half of India’s plumbing, some of its infrastructure, and probably lit up your cousin’s wedding venue too. Incorporated in 1973, this company started with steel pipes, flirted with lighting, married diversification, and now manages to outshine half the industrial sector — without borrowing a paisa.
From being India’s largest exporter of ERW pipes to the #2 lighting brand, Surya Roshni’s evolution looks like that kid in school who aced both science and arts. The company’s steel pipes now contribute around 80% of revenue, while the lighting and consumer durables business — yes, they make everything from LED bulbs to wall fans — takes the remaining 20%.
And while the world debates “Make in India,” Surya’s already busy shipping from India. With exports to 50+ countries and a leadership position in GI Pipes across 10 states, this company is basically the Virat Kohli of the pipes world — consistent, aggressive, and annoyingly good at converting singles into centuries.
In FY24, it achieved what many balance sheets dream of — wiping off ₹1,090 crore in debt and ending the year with just ₹4 crore left. Even auditors probably cried tears of joy.
3. Business Model – WTF Do They Even Do?
Let’s break it down before you start thinking Surya makes solar panels (it doesn’t, yet).
The business rests on two sturdy legs — Steel Pipes & Strips (80%) and Lighting & Consumer Durables (20%).
Steel Pipes & Strips: The main hustle. Surya manufactures ERW, GI, API-grade, Spiral, and Structural Pipes — basically, every kind of pipe you didn’t know existed. The products serve water, oil & gas, and infrastructure sectors, all under the Prakash Surya brand. Its plants across Haryana, Gujarat, MP, and Andhra Pradesh churn out a combined 9.61 lakh MTPA of ERW pipes and 2 lakh MTPA of spiral pipes. That’s not steel — that’s pure operational testosterone.
Lighting & Consumer Durables: Remember when tube lights flickered like they were haunted? Surya fixed that. Since 1984, they’ve built India’s #2 lighting brand, manufacturing everything from LED bulbs to smart lighting systems at Kashipur and Malanpur. And just when they had enough brightness, they entered fans and kitchen appliances — because why not sell air and electricity together?
If you think “pipes and bulbs” sounds random, remember: both involve flow — one of water, the other of current. Surya’s business model is built on keeping both steady.
4. Financials Overview
Metric
Q2 FY26
Q2 FY25
Q1 FY26
YoY %
QoQ %
Revenue
₹1,845 Cr
₹1,529 Cr
₹1,604 Cr
+20.7%
+15.0%
EBITDA
₹118 Cr
₹76 Cr
₹70 Cr
+55.3%
+68.6%
PAT
₹74 Cr
₹36 Cr
₹34 Cr
+106%
+117.6%
EPS (₹)
₹3.41
₹1.66
₹1.54
+105%
+121%
Annualised EPS: ₹13.6 → implying a P/E of ~20x at CMP ₹276.
Commentary: The margin glow-up is real. EBITDA margin climbed to 6.4% after dipping to 4% last quarter, proving that Surya doesn’t just sell lighting — it knows how to switch its profit mode too. With a YoY profit jump of 106%, even the taxman probably double-checked the math.
5. Valuation Discussion – Fair Value Range
Let’s keep the maths clean:
P/E Method:
EPS (annualised) = ₹13.6
Industry P/E = 21.8
Fair Value = ₹13.6 × (15x to 21x) = ₹204 – ₹286
EV/EBITDA Method:
EV = ₹5,724 Cr
EBITDA (TTM) = ₹590 Cr (approx)
EV/EBITDA = 9.7x currently
Fair Value if re-rated to 8x–11x → ₹250 – ₹345
DCF (Simplified): Assuming FCFE growth of 10%, cost of equity 12%, terminal growth 4% → fair range ₹260 – ₹320
🎓 Fair Value Range: ₹250 – ₹320
Disclaimer: This range is for educational purposes only and not investment advice. Your broker, your risk.
6. What’s Cooking – News, Triggers, Drama
If Surya Roshni were a daily soap, this quarter would’ve been a season finale.
New Orders Galore: ₹174.78 crore order from Gujarat for spiral pipes, ₹75.4 crore from Gujarat Gas, ₹116 crore from GAIL, ₹81 crore from BPCL, and ₹215 crore from HPCL — someone please give their sales team a standing ovation.
Debt-Free & Loving It: As of FY24, total debt stands at ₹16 crore. To put that in perspective, that’s less than what Bollywood
