01 — At a Glance
India’s Largest Pipe Exporter Proves Inventory Management Is Hard
- 52-Week High / Low₹359 / ₹199
- Q3 FY26 Revenue₹1,927 Cr
- Q3 FY26 PAT₹80 Cr
- Q3 FY26 EPS₹3.66
- Annualised EPS (Q3×4)₹14.64
- Book Value₹115
- Price to Book1.83x
- Dividend Yield2.02%
- Debt / Equity0.00x
- Net Cash Position₹245 Cr
The Honest Opening: Surya Roshni is India’s largest ERW pipes exporter with 60% market share and the second-largest in lighting. Revenue ₹1,927 Cr (+3% YoY). PAT ₹80 Cr (-11% YoY). The company is debt-free with ₹245 crore net cash. But—and this is a big but—they lost ₹12 crore in Q3 alone to a steel inventory correction that management is banking on reversing in Q4 with a ₹40–45 crore stock gain. This is not a typo. This is their actual guidance. Welcome to the volatile, fascinating, deeply confusing world of steel pipes.
02 — Introduction
A Company That Makes Things You’ll Never See But Always Need
Surya Roshni Limited. Incorporated in 1973. Been making steel pipes and light bulbs for 51 years. Never once has someone at a dinner party said, “Oh wow, I love Surya Roshni pipes!” Because no one sees pipes. Pipes live in walls. Inside infrastructure. Under roads. Literally everywhere except human consciousness.
And that’s precisely why this company is brilliant. It owns 51% of India’s automotive lubricants market? No, that’s Castrol. Surya Roshni owns 60% of ERW pipe exports. It’s the number one ranked GI pipe producer in states like Andhra Pradesh, Telangana, MP, Chhattisgarh, UP, and Jharkhand. In the lighting space, it’s #2 consumer lighting brand after Philips. Not glamorous. Not Fintech. Not blockchain. Just… stuff that works.
Then Q3 FY26 happened, and the company’s inventory of steel pipes got absolutely decimated when prices fell sharply in October-November 2025. Management disclosed a “one-time inventory loss of around ₹500 per tonne” which translated to ₹12 crore hitting the P&L. On the concall, they calmly announced they expect the opposite (a ₹40–45 crore stock gain) in Q4. This is what happens when you’re a steel converter operating on thin margins in a commodity business—you’re always at the mercy of price volatility.
Let’s break down this mess with data, sarcasm, and the kind of clarity that your typical sell-side analyst avoids.
Concall Insight (Feb 2026): Management stated: “Steel EBITDA per tonne will be a minimum of ₹5,000 per ton” next year. They also claimed “we can reach ₹750 crores EBITDA in FY27.” That’s 29% jump from FY26 guidance of ₹580–600 crore. Let that sink in. Either execution is about to get phenomenal, or margins are about to get volatile all over again.
03 — Business Model: Pipes, Bulbs, & Chaos
Two Separate Companies Held Together By An Accounting Document
Surya Roshni operates two completely different businesses under one roof. It’s like putting a nuclear scientist and a sommelier in the same office and expecting them to work in harmony.
Steel Pipes & Strips (~80% of revenue): They manufacture ERW pipes, spiral pipes, API grade pipes, black & CR strips. Sold under the brand ‘Prakash Surya,’ these products are exported to 50+ countries with Gulf Cooperation Council countries taking the lion’s share. They run factories across Haryana, Gujarat, MP, and Andhra Pradesh. Current capacity: 9.61 lakh MTPA (ERW), 2 lakh MTPA (Spiral), 1.15 lakh MTPA (CR sheets). They’re adding more. They’re always adding more. In Q3, they dispatched 2.37 lakh tonnes—steady growth QoQ. But pricing is a nightmare. One minute you’re selling at ₹48,000 per tonne, the next minute the market is ₹45,000 and your inventory just tanked.
Lighting & Consumer Durables (~20% of revenue): They make LED bulbs, tubelights, fans, and home appliances under the brand ‘Surya.’ Revenue ₹476 crore in Q3 (+6% YoY). They claim “very strong volume growth across LED bulb, Batten and Down Lighter.” They also launched wiring cables in August 2025. Management says demand is so strong they can’t supply enough. Which is great, except—and here’s where it gets funny—they’re now spending ₹10–12 crore per quarter on publicity to push the brand. That’s a big number for a company whose margin profile was already getting squeezed by input costs.
Distribution network: 21,000+ retailers and 250+ dealers for steel. 2,50,000+ retail outlets and 2,500 dealers for lighting. That’s a lot of people to keep happy when your product cycle is 90 days and your margins are 5–9%.
ERW Capacity9.61 L MTPASegment: 80%
LED Revenue Share62%Up from 56%
Export Market Share60%ERW Pipes
The Brutal Reality: Steel pipe margins are 5–8% OPM. Lighting margins are 8–9% OPM. Both are working capital intensive. Inventory holdings: 59 days for steel. Accounts receivable: 44 days. Days payable: 24 days. Your cash conversion cycle is basically bleeding you. The company manages it well enough, but any price shock turns the quarter into a guessing game.
04 — Financials Overview
Q3 FY26: The Numbers That Don’t Tell The Whole Story
Result type: Quarterly Results | Q3 FY26 EPS: ₹3.66 | Annualised EPS (Q3×4): ₹14.64 | Full-year FY25 EPS: ₹16.01
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 1,927 | 1,868 | 1,845 | +3.2% | +4.4% |
| EBITDA | 148 | 156 | 118 | -5.1% | +25.4% |
| EBITDA Margin % | 7.7% | 8.3% | 6.4% | -60 bps | +130 bps |
| PAT | 80 | 90 | 74 | -11.1% | +8.1% |
| EPS (₹) | 3.66 | 4.13 | 3.41 | -11.4% | +7.3% |
The Inventory Elephant in the Room: Yes, revenue is up 3% YoY. Yes, QoQ sequential improvement. But PAT is down 11% YoY. Why? Because management took a ₹12 crore stock loss in Q3 from the sharp steel price correction. Strip that out and Q3 PAT would’ve been ~₹92 crore. Management is banking on the inverse happening in Q4—a ₹40–45 crore stock gain. If that plays out, FY26 annual PAT will look fine. If it doesn’t, FY26 turns into a disappointment. This is what happens when you convert commodities for a living.
05 — Valuation: The Fair Value Knife Fight
Is ₹211 Expensive or a Screaming Bargain? (Spoiler: Neither.)
