Surya Roshni Shines Bright: Q2 & H1 FY26 Performance Overview

Surya Roshni Limited, a diversified Indian conglomerate with strong footprints in steel pipes, lighting, and consumer durables, has reported a robust financial performance for the second quarter and first half of fiscal year 2026. The company's consolidated revenue for Q2 FY26 surged to ₹1,845 crore, marking an impressive 21% year-on-year growth. This strong top-line expansion was complemented by a remarkable increase in profitability, with Profit After Tax (PAT) more than doubling to ₹74 crore, a significant 117% rise compared to the previous year. This stellar performance was primarily attributed to improved realizations, a favorable product mix, and enhanced operating leverage across its business segments.

The first half of FY26 also demonstrated sustained momentum, with consolidated revenue reaching ₹3,450 crore. The management's strategic focus on value-added products, operational efficiencies, and market penetration has clearly paid dividends, positioning Surya Roshni for continued growth despite a dynamic operating environment. The company's ability to navigate market pressures, particularly in the steel sector, while simultaneously expanding its high-margin offerings, underscores its resilient business model and effective execution capabilities.

Segmental Performance: Steel Pipes Lead the Charge

The Steel Pipe and Strips business emerged as a key growth driver, reporting a robust 24% YoY revenue growth in Q2 FY26. This segment achieved its highest-ever Q2 volumes, significantly boosted by a 45% YoY increase in export volumes. The company's strategic emphasis on value-added products and strong export momentum, particularly from European and Canadian markets, contributed to a substantial improvement in profitability. EBITDA per ton for the steel segment surged by 73% YoY to ₹5,013, reflecting enhanced efficiencies and disciplined cost control. Despite some pressure from falling steel prices in July, the company effectively managed its inventory, largely offsetting notional losses through improved realizations.

The Lighting and Consumer Durables segment also delivered a healthy performance, with revenue growing 10% YoY in Q2 FY26. This growth was fueled by strong double-digit volume increases in key product categories such as LED lamps (+37%), battens (+36%), downlighters (+22%), and streetlights (+104%), benefiting from festive season demand. The segment's EBITDA margins expanded to 9.0% from 7.7% in Q1 FY26, driven by operational efficiencies and a favorable product mix, even amidst continued pricing pressures in certain LED categories. The professional lighting business, in particular, grew 25% YoY, supported by strong demand across solar, façade, industrial, and outdoor segments, maintaining a robust order book of over ₹125 crore.

Strategic Initiatives and Future Outlook

Surya Roshni is actively pursuing several strategic initiatives to sustain its growth trajectory. The company has commissioned a new spiral pipe manufacturing project at Malanpur, M.P., with an outlay of ₹50 crore, adding 24,000 tons per annum to its capacity to cater to water projects. Significant capacity expansions are underway in the steel segment, including a 36,000-ton increase in cold rolling at Bahadurgarh and a 60,000-ton increase in spiral plant capacity at Gwalior. Greenfield projects are expected to add another 5 lakh tons, aiming for a total capacity of 1.95 million tons in the next 1.5 to 2 years.

In the lighting segment, the company has completed its PLI-linked investments of ₹25 crore for LED component manufacturing, fostering backward integration and reducing import dependency. The soft launch of its domestic wires business in August 2025 has received positive market feedback and is on track to achieve a revenue target of ₹150 crore for FY26. Furthermore, Surya Roshni is investing ₹10 crore in installing 3 MW of captive rooftop solar capacity at its lighting facilities, aiming to meet 40% of their power requirements and reduce fixed costs by 7-9% through manpower optimization.

Financial Prudence and Shareholder Value

Surya Roshni continues to maintain a strong financial position, operating as a zero-debt company with a net cash surplus of ₹246 crore as of September 30, 2025. This financial prudence provides a solid foundation for future growth and strategic investments. The Board of Directors has also approved an interim dividend of ₹2.50 per share, reflecting its commitment to rewarding shareholders and consistent value creation. The company's healthy capacity utilization across plants and a robust order book of ₹875 crore across both segments provide strong revenue visibility for the second half of FY26.

Looking ahead, Surya Roshni remains confident in maintaining its growth momentum. The management anticipates a much-improved outlook for H2 FY26, driven by a pick-up in government project execution, revival in agricultural demand, and strengthening construction steel demand. The company's focus on innovation, deepening distribution, enhancing exports, and exploring synergistic diversification opportunities in renewable energy are expected to drive sustained performance and reinforce its market leadership.