1. At a Glance
Surya Roshni is India’s largest exporter of ERW pipes, largest manufacturer of GI pipes, and the second-largest player in the domestic lighting segment. With a legacy dating back to 1973, the company blends steel pipes with LED bling—delivering steady profits, but facing headwinds from slowing sales growth.
2. Introduction with Hook
Imagine a company that sells both pipes for your house and lights to make your house look good. That’s Surya Roshni. It’s like Ambuja Cement launching a nightclub chain—oddly useful.
- 60% share in India’s ERW pipe exports
- 28% CAGR profit growth over 5 years
- But sales growth is crawling at 6.3% over the same period
Steel + LEDs = Profits? Read on.
3. Business Model (WTF Do They Even Do?)
Two Engines of Revenue:
1. Steel Pipes Division (74% of FY25 Revenue):
- ERW, GI, 3LPE-coated pipes, spiral welded pipes
- Largest exporter of ERW pipes in India
- Products used in oil & gas, water transmission, city gas distribution, housing
2. Lighting & Consumer Durables (26%):
- LED bulbs, luminaires, street lights, fans, and home appliances
- 2nd largest player in LED lighting in India
Revenue Mix FY25:
- Domestic: ~72%
- Exports: ~28%
Moats:
- Strong dealer-distributor network
- In-house R&D + integrated backward supply chain
- Brand recall across India’s pipe and lighting markets
4. Financials Overview
Key Metrics (FY25):
| Metric | Value |
|---|---|
| Revenue | ₹7,435 Cr |
| Net Profit | ₹348 Cr |
| EBITDA Margin | 8% |
| ROCE | 21% |
| ROE | 15% |
| Debt | ₹16 Cr |
| EPS (Diluted) | ₹16.01 |
5-Year Trends:
- Profit CAGR: 28%
- EPS growth: 3.6x from FY20
- EBITDA doubled since FY20
Surya Roshni’s financials are as lean as its LED tubes—low debt, high returns.
5. Valuation
Current Market Price: ₹327
P/E: ~20x
Book Value: ₹113
Price to Book: ~2.88x
Fair Value Estimate (FY26E):
| Method | Range ₹ |
|---|---|
| DCF (base case) | 340 – 370 |
| EV/EBITDA (9x) | 360 – 400 |
| PE Method (20x FY26 EPS ₹20) | 360 – 400 |
EduVal™ Range: ₹340 – ₹400
Valuation says it’s not cheap, but not overpriced either. A mid-cap grinder.
6. What’s Cooking – News, Triggers, Drama
- Order wins: ₹75.4 Cr from Gujarat Gas for coated ERW steel pipes in June 2025
- Credit Rating Upgrade: CARE AA (Long Term), A1+ (Short Term) in June 2025
- Capex Focus: Upgrading coating facilities for high-margin products
- Export Push: Expanding to Latin America, EU, and Southeast Asia
- Lighting Segment Stress: Price erosion in LEDs impacting margins
The steel side is piping hot; the LED side’s fighting price wars.
7. Balance Sheet
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Share Capital | 109 |
| Reserves | 2,355 |
| Total Borrowings | 16 |
| Other Liabilities | 752 |
| Fixed Assets | 841 |
| CWIP | 57 |
| Total Assets | 3,233 |
Key Points:
- Virtually debt-free
- Net worth crossed ₹2,400 Cr
- Low capex burden → Free cash flow engine unlocked
8. Cash Flow – Sab Number Game Hai
| Cash Flow Item | FY25 (₹ Cr) |
|---|---|
| CFO (Operating) | 393 |
| CFI (Investing) | -328 |
| CFF (Financing) | -80 |
| Net Cash Flow | -15 |
Insights:
- Strong cash generation every year post-COVID
- Investing heavily in plant upgrades (likely for coating/lighting)
- Paying off debt, distributing more dividends (34% payout)
9. Ratios – Sexy or Stressy?
| Ratio | FY25 | FY24 | FY23 |
|---|---|---|---|
| ROCE | 21% | 21% | 23% |
| ROE | 15% | 15% | 17% |
| OPM | 8% | 7% | 8% |
| Net Profit Margin | 4.7% | 4.2% | 5.6% |
| Debt/Equity | 0.01 | 0.01 | 0.02 |
Verdict:
Toned and tight—no red flags, just slow growth.
10. P&L Breakdown – Show Me the Money
| Year | Sales ₹ Cr | EBITDA ₹ Cr | PAT ₹ Cr | EPS ₹ | Dividend % |
|---|---|---|---|---|---|
| FY23 | 7,996 | 614 | 335 | 15.41 | 11% |
| FY24 | 7,809 | 572 | 329 | 15.11 | 16% |
| FY25 | 7,435 | 579 | 348 | 16.01 | 34% |
Takeaway:
Revenue flattish, margins stable, profits inching up, and dividend party is on.
11. Peer Comparison
| Company | P/E | ROCE % | OPM % | Rev (Cr) | PAT (Cr) | Mcap (Cr) |
|---|---|---|---|---|---|---|
| APL Apollo Tubes | 61 | 22.8 | 5.8 | 20,689 | 757 | 46,235 |
| Welspun Corp | 20 | 21.2 | 12 | 13,977 | 1,206 | 24,378 |
| Ratnamani Metals | 36 | 21.6 | 15.8 | 5,186 | 541 | 19,702 |
| Surya Roshni | 20.4 | 20.9 | 7.8 | 7,435 | 348 | 7,108 |
Insight:
Surya is cheaper than its premium peers, offers solid ROCE, and is a dark horse in exports.
12. Miscellaneous – Shareholding, Promoters
Promoter Holding: Stable at 62.47%
FIIs: Rising to 4.67% from 0.86% in 2022
DIIs: Also growing to 1.69%
Public Holding: 31.16%
Fun Fact:
FIIs seem to be finding value here quietly. Something brewing?
13. EduInvesting Verdict™
Surya Roshni is the guy who topped class in both math and art. Its steel division brings in the cash, while lighting helps with brand shine. While sales growth has plateaued, profitability continues to improve, margins are stable, and debt is nearly nonexistent.
If it can push value-added exports and squeeze better margins from the lighting biz, it could break out of its sideways trend.
EduNote™:
Mid-cap compounder with export muscle, stable earnings, and improving shareholder returns. Just don’t expect it to move like an LED strobe—this is a slow-burn story.
Metadata
– Written by EduInvesting Analyst Team | 18 July 2025
– Tags: Surya Roshni, Pipes, Steel, Lighting, Export, Value Investing, Midcap, India Manufacturing
