Surya Roshni targets 80% in-house appliances by FY30

Surya Roshni Limited aims to manufacture 80% of its appliances in-house by financial year 2030 (FY30), from about 10% currently, supported by deeper component integration, a growing wires business and a ₹900 crore Professional Lighting target by March 2030. The plan follows Lighting & Consumer Durables revenue growth of 17% to ₹507 crore in the second quarter of financial year 2027 (Q2FY27).

How will Surya Roshni increase in-house appliance production?

Surya Roshni plans to raise in-house appliance production to 80% by FY30 from about 10% currently, starting with about 20% in fans. Management said the approach relies on greater manufacturing depth and backward integration, including printed circuit boards (PCBs) and diffusers, to improve control over cost, quality and speed to market.

PCB capacity is being increased from 25,000 square metres to 40,000 square metres, with machinery due within six weeks of the November 7, 2026 announcement. Management said it would decide by December 2026 whether to add another 20,000 square metres, as part of a path to 1 lakh square metres, and is evaluating integration into PCB laminates.

Surya Roshni already produces ventilation fans, induction cooktops and infrared cooktops at Kashipur. Its air-delivery testing laboratory is being accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL), while management said new appliances were scheduled for launch by January 2027. The company also cited an LED batten range of around 30 stock-keeping units from 10 watts to 60 watts, in lengths of one foot to four feet.

What is driving Surya Roshni’s consumer-business growth?

Surya Roshni’s Lighting & Consumer Durables segment reported its highest-ever second-quarter revenue of ₹507 crore in Q2FY27, up 17% year on year and 11% sequentially. First-half financial year 2027 (H1FY27) revenue rose 16% to ₹964 crore, even though Diwali falls in Q3 rather than Q2 in the current financial year.

Growth was spread across categories. Ceiling-fan and water-heater volumes each rose 26% year on year in Q2FY27, mixer grinders increased 20%, and table, pedestal and wall fans rose 18%. LED bulb volumes increased 11%, including 24% growth in higher-wattage bulbs; management said this mix caused category profitability to grow faster than volume.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by ₹1 crore year on year, while the segment’s EBITDA margin declined by 120 basis points. Profit before tax fell by ₹1 crore over the same comparison.

The EBITDA margin was unchanged from Q1FY27 at 7.8% but below 9.0% a year earlier. Management attributed the year-on-year movement to higher input costs, extended producer responsibility payments, working-capital requirements and greater brand spending. It said backward integration absorbed much of the cost rise and that it was implementing price increases more quickly.

How quickly are wires and Professional Lighting scaling up?

Surya Roshni’s Wires & Cables revenue increased from about ₹38 crore in Q1FY27 to about ₹50 crore in Q2FY27, taking H1FY27 revenue to about ₹88 crore. Management targets ₹250 crore of Wires & Cables revenue in FY27 and ₹500 crore within three years, while it targets about ₹900 crore in Professional Lighting by March 2030.

The wires business had about 40,000 members in its electrician loyalty programme in Q2FY27, up from 36,000 in August. Surya Roshni has added exclusive wire distributors and launched new products across thicknesses, while management said the Malanpur plant’s green-production certification and new wire-related retail counters supported the expansion.

Professional Lighting had an order book exceeding ₹200 crore at the end of Q2FY27, providing management with execution visibility for H2FY27. The presentation did not identify customers, individual project values or the timing of revenue recognition for the full order book.

Exports accounted for 3% to 4% of Lighting & Consumer Durables revenue in Q2FY27. Management expects the proportion to rise in H2FY27 through export and contract-manufacturing cooktop orders over the next three quarters, plus progressing Wires & Cables enquiries, but these are expectations rather than reported orders.

What FY27 and FY30 targets has Surya Roshni set?

Surya Roshni said it remains on track for FY27 Lighting & Consumer Durables guidance of 22% to 23% value growth and 25% volume growth, equivalent to about ₹2,200 crore of revenue and ₹200 crore of EBITDA. Management then targets about 20% value growth in FY28 and about 15% compound annual growth through FY30, with EBITDA margins of about 9%.

The targets follow H1FY27 segment EBITDA growth of 8% to ₹76 crore, slower than the 16% revenue increase to ₹964 crore. Consequently, the H1FY27 EBITDA margin declined to 7.8% from 8.4%, with management citing costs of copper, aluminium, steel and petroleum-based materials, alongside advertising, publicity and extended producer responsibility expenditure.

Advertising and publicity spending rose to about ₹10 crore in H1FY27 from ₹6.5 crore a year earlier, directed towards wires, gifting and appliances. Management said 3 megawatts of rooftop solar at Malanpur and Kashipur saves about ₹20 lakh to ₹21 lakh monthly, and that a decision on a further 1 megawatt was due by December 2026.

Why does H2FY27 matter for Surya Roshni’s plan?

Surya Roshni expects a better H2FY27 because Q3 and Q4 are traditionally the industry’s stronger quarters and Diwali falls in Q3 this year. Management cited factories running at full capacity, pre-festive demand, expanding distribution and the Professional Lighting order book of more than ₹200 crore as near-term support for that expectation.

The consumer plan sits alongside a group order book of about ₹1,400 crore, including about ₹1,200 crore in Steel Pipes & Strips. Consolidated revenue rose 33% year on year to ₹2,448 crore in Q2FY27, of which Lighting & Consumer Durables accounted for ₹507 crore and Steel Pipes & Strips for ₹1,941 crore, showing the consumer segment remains the smaller reported business.

Surya Roshni reported a net working-capital cycle of 63 days, return on capital employed of 15.74% and return on equity of 11.35% in Q2FY27. The company reported zero debt and a cash surplus of ₹75 crore as of September 30, 2026, while management noted that consumer-segment input-cost increases had also raised working-capital needs.

Conclusion

Surya Roshni’s consumer strategy combines deeper in-house appliance production with expansion in Wires & Cables and Professional Lighting. Q2FY27 segment revenue of ₹507 crore was supported by volume growth in fans, water heaters, mixer grinders and LED bulbs, while the longer-term manufacturing objective is to move appliances from about 10% in-house production to 80% by FY30.

The next disclosed milestones are the January 2027 appliance launches, December 2026 decisions on added PCB and solar capacity, and execution of the more than ₹200 crore Professional Lighting order book in H2FY27. Management’s FY27 targets of about ₹2,200 crore revenue and ₹200 crore EBITDA will also depend on its ability to manage material costs, working capital and planned brand expenditure.