Surya Roshni in FY26: steady revenue, softer margins, and a push toward value added growth

Surya Roshni Limited closed Q4 FY26 with consolidated revenue of ₹2,163 crore, up 1% year on year and 12% higher sequentially. Profitability was weaker versus last year, but improved versus the prior quarter. EBITDA for Q4 FY26 came in at ₹170 crore, down 19% year on year, while profit after tax was ₹98 crore, down 24% year on year but up 23% quarter on quarter.

For the full year, the picture was similar. FY26 consolidated revenue was ₹7,540 crore, up 1% over FY25. EBITDA fell 11% to ₹541 crore and PAT declined 18% to ₹286 crore. The numbers show a company that kept its top line stable through mixed end markets, but faced pressure on operating spreads. Management commentary points to two counterweights: improving realizations and product mix, and a deliberate effort to lift value added share across the portfolio.

Two operating engines shaped the year. Steel Pipes and Strips remained the larger contributor with FY26 revenue of ₹5,731 crore, while Lighting and Consumer Durables delivered FY26 revenue of ₹1,809 crore and continued to expand into adjacent FMEG categories such as fans, appliances, wires and cables, and PVC pipes.

Q4 FY26: stable revenue, sequential recovery in earnings

Q4 FY26 was a quarter where volumes and mix mattered more than headline growth. Consolidated revenue stayed broadly flat year on year, but recovered meaningfully from Q3 FY26, suggesting a stronger finish to the year. The company highlighted that better realizations and an improved product mix supported the sequential improvement in profits.

In Steel Pipes and Strips, Q4 FY26 revenue was ₹1,662 crore, down 2% year on year but up 15% sequentially. EBITDA in the segment was ₹126 crore, down 23% year on year and up 19% sequentially. Segment EBITDA per tonne was ₹5,121 in Q4 FY26 versus ₹6,708 in Q4 FY25, reflecting lower spreads compared to last year.

Even with margin pressure, operating momentum in steel was notable. The company reported its highest ever quarterly dispatch volumes of about 2.6 lakh tonnes in Q4 FY26. It also stated that value added products contributed about 43% of overall volumes in FY26, and that the hollow section category recorded the highest ever quarterly sales in Q4.

Lighting and Consumer Durables had a cleaner growth story in the quarter. Q4 FY26 segment revenue was ₹501 crore, up 9% year on year and 5% sequentially. Segment EBITDA was ₹44 crore, down 6% year on year but up 5% sequentially, with EBITDA margin at 8.8%.

Financial summary

Steel Pipes and Strips: volume strength, value added focus, export visibility

Steel remained the bigger business, and FY26 results show how spread cycles can outweigh revenue stability. FY26 segment revenue was ₹5,731 crore, flat year on year, while segment EBITDA fell 14% to ₹385 crore. EBITDA per tonne for FY26 was ₹4,553 versus ₹5,392 in FY25.

Management commentary makes it clear that performance was shaped by volatility in export markets and broader disruptions, but also by internal actions: disciplined inventory management, improving realizations, and growing contribution from value added products. The value added strategy is visible in the product portfolio itself, where GI pipes, API and spiral pipes, hollow sections, and coated variants address different end markets.

API pipes and 3LPE coated pipes sit at the center of this pivot. The company stated it has gained market share to about 10% of oil and gas transmission pipes, spanning cross country lines and city gas distribution. It highlighted the growth opportunity in water transmission and noted its 3LPE coating plant machinery has been procured from Selmers, Netherlands, with installed external coating capacity of 27,50,000 square meters. Accreditations from major project management consultants such as EIL and Mecon were also noted.

A key FY26 operational milestone was the commissioning of a new spiral project at Malanpur, Madhya Pradesh. The expansion outlay is ₹50 crore and is aimed at manufacturing spiral pipes for water projects, with capacity of about 24,000 tons per annum, targeted at markets in Rajasthan, Madhya Pradesh and Uttar Pradesh.

Exports remain a meaningful lever. The company described expanding footprints in newer geographies including the UK market, while strengthening order visibility across North America and Europe. It reported an order book of ₹1,000 crore led largely by exports, spiral pipes and domestic API orders, and indicated this provides strong visibility for H1 FY27.

Lighting and Consumer Durables: growth with brand spend and category expansion

Lighting and Consumer Durables delivered the clearer growth trajectory in FY26, with revenue up 7% to ₹1,809 crore. Profitability was slightly lower. FY26 segment EBITDA was ₹156 crore versus ₹162 crore in FY25, and EBITDA margin declined to 8.6% from 9.6%.

The segment narrative is shaped by two simultaneous moves. First, it is defending and growing its lighting base. The company positions itself as the number 2 consumer lighting brand in India, with deep distribution reach into semi urban and rural markets. Second, it is broadening into adjacent FMEG categories and building a longer runway, including fans, home appliances, wires and cables, pumps, and PVC pipes.

Distribution is a recurring theme in the presentation. The company cited over 3,00,000 retail outlets and a secondary network of 300 plus RTF and 2,500 plus DSPs supporting the primary network. The focus is not just reach, but also secondary demand generation, transparent channel policies, and a decentralised branch and depot system to improve delivery and feedback loops.

On the product side, FY26 saw launches across multiple lines. In consumer lighting, new products included LED downlighters and battens, and HID lamps. In consumer durables, new launches included products such as Chill 150 Ltr, Chill 100 Ltr, Infrared Plus, and Indicook Pri X. Wires and cables saw a new product launch in FY26, with the company stating it launched in August 2025.

Backward integration under the PLI scheme is another important part of the medium term story. The company reported commencement of a manufacturing facility for LED components under the PLI scheme for the Large Investment category. The target segment includes components such as LED drivers, mechanicals, housing, packaging, modules, and wire wound inductors. It stated it has already invested cumulative incremental minimum investment in plant and machinery of ₹25 crores, has received the third year claim, and is eligible for the fourth year claim. The incentive range mentioned is 4% to 6% on sales over the base year for a period of five years subsequent to the base year.

PVC pipes are still a smaller part of the mix, but the presentation frames them as a sizeable opportunity linked to housing, Nal se Jal, AMRUT, and Swachh Bharat Mission. The company reported PVC pipe revenue of ₹102 crore in FY26 versus ₹94 crore in FY25, and stated it has reached capacity of 12,500 MTPA.

Segment comparison snapshot

Balance sheet and cash flow: leaner leverage, higher cash, working capital control

A notable strength in the FY26 narrative is balance sheet positioning. The company highlighted a net cash surplus of ₹337 crore as on 31 March 2026. The consolidated balance sheet shows cash and bank balance of ₹453 crore at Mar 26 versus ₹296 crore at Mar 25, while working capital borrowings were ₹65 crore at Mar 26 versus ₹3 crore at Mar 25.

Across the last five years, the company also presented a sharp reduction in debt from FY22 to FY25, with FY26 debt shown at ₹65 crore at the consolidated level. It also disclosed that investment in the form of FDRs was ₹407 crore as of 31 March 2026.

Cash generation stayed healthy. FY26 cash generated from operations was ₹520 crore versus ₹526 crore in FY25. Net cash inflow from operating activities was ₹400 crore in FY26 versus ₹394 crore in FY25. Investing cash flow was an outflow of ₹284 crore in FY26, consistent with ongoing capex and growth investments.

For investors, the cash flow statement supports an important point: despite lower profitability year on year, the business continued to generate operating cash, while funding capacity addition and integration initiatives.

What to watch: value added mix, spreads, and execution in new categories

FY26 is best read as a year of stable revenue and strategic progression, but with margin headwinds. In steel, EBITDA per tonne declined versus last year, and the consolidated gross profit margin also moved lower to 23.0% in FY26 from 24.2% in FY25. That said, the company is actively managing mix and capacity to raise the share of higher margin products. It is also leaning on exports and projects such as API, coated pipes, and spiral pipes for water infrastructure.

In Lighting and Consumer Durables, the direction is consistent: strengthen brand and distribution, and build adjacency categories into meaningful contributors. The segment has grown revenue steadily from FY22 to FY26, but margins dipped in FY26. The next phase depends on whether backward integration under PLI and category scale up can defend profitability while keeping growth steady.

The presentation ends with a set of key takeaways that summarize management intent: strong market positions across both segments, investment in brand and distribution, momentum in value added products, rigorous financial control, and robust demand drivers. The most useful investor lens is to treat FY26 as an execution year, where the company protected revenue through a tougher spread environment and continued laying the groundwork for higher value growth in FY27 and beyond.