Surya Roshni: 63% Profit Fall – When the Light Bulb Flickers and the Pipe Leaks
1. At a Glance
Q1FY26 wasn’t kind to Surya Roshni — revenue slipped 15.25% YoY, and net profit collapsed 63.64%. For a company that’s India’s largest ERW & GI pipe producer 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.
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
