Surya Roshni Q4 FY26 PAT falls 24% YoY; stock drops 11%

Stock reaction: Surya Roshni ends sharply lower

Surya Roshni ended lower after the company reported a year-on-year decline in profitability for Q4 FY26. The stock tumbled 11.50% to settle at ₹218.45. The move came as consolidated profit after tax (PAT) fell 24.44% YoY to ₹98.30 crore from ₹130.09 crore in Q4 FY25.

Q4 FY26 headline numbers: profit down, revenue steady

For Q4 FY26, consolidated revenue from operations rose 0.81% YoY to ₹2,163.25 crore. Profit before tax (PBT) declined 25.34% YoY to ₹131.01 crore. EBITDA fell 19% YoY to ₹170 crore from ₹211 crore in the year-ago quarter.

The company reported an EBITDA margin of around 7.9% for the quarter. Management also highlighted sequential improvement in margins to 7.9% and a sequential rise in PAT.

Segment performance: lighting growth offsets steel softness

Surya Roshni’s Lighting and Consumer Durables segment reported Q4 FY26 revenue of ₹501 crore, registering 9% YoY growth. The company attributed the segment performance to demand across consumer lighting, professional lighting, and appliances categories.

In contrast, revenue from the Steel Pipes and Strips business fell 2% YoY to ₹1,662 crore during the quarter. The mixed segment trend meant consolidated revenue stayed largely stable even as profitability declined.

Full-year FY26: lower profit, marginal revenue growth

On a full-year basis, Surya Roshni’s consolidated net profit declined 17.54% to ₹285.81 crore in FY26. Revenue from operations increased 1.41% to ₹7,540.42 crore in FY26 over FY25.

Management described FY26 as a period marked by macroeconomic and geopolitical uncertainties, along with pricing pressure across certain segments.

Management commentary: sequential improvement and March sales milestone

Managing Director Raju Bista said consolidated revenue for Q4 FY26 stood at about ₹2,163 crore, stable YoY and improving 12% sequentially. He added that EBITDA was ₹170 crore for the quarter and margins improved sequentially to 7.9%.

Bista also said Q4 FY26 PAT of about ₹98 crore reflected a 23% sequential improvement over Q3 FY26, despite continued pricing pressure. He highlighted that March 2026 was Surya Roshni’s highest-ever sales month across every business category.

Wires and cables: small base, sharper targets

In wires and cables, the business closed FY26 with revenues of ₹38 crore. Management said it is now an end-to-end manufacturer in this category, with 180-metre reel packs in the market and a DBT-enabled electrician loyalty programme operational.

For FY27, management set a revenue target of ₹250 crore for wires and cables and reiterated a three-year guidance of ₹500 crore. The company also outlined distribution expansion targets of reaching 3 lakh billing points by March 2028 and 4 lakh by March 2030.

Steel Pipes and Strips: volumes and exports in focus for FY27

For the steel pipes and strips business, management cited steel price volatility, safeguard duty implementation, geopolitical uncertainties, and slower execution across certain government-led projects.

Looking ahead to FY27, the company is targeting overall volumes of approximately 11 lakh tonnes, representing growth of approximately 21%-22% over FY26 volumes. On exports, Surya Roshni is targeting to cross 2.5 lakh tonnes in FY27, compared with 1.41 lakh tonnes achieved in FY26.

Dividend and board process

The board recommended a final dividend of ₹2.50 per equity share of face value ₹5 for the financial year ended March 31, 2026. Separately, Surya Roshni informed BSE that a board meeting is scheduled on 25/05/2026 to consider and approve standalone and consolidated audited financial results for Q4 and FY26, and to recommend a final dividend, if any.

The company also scheduled an earnings conference call (group meet) to discuss financial and operational performance for the quarter and year ended March 31, 2026.

Key financial snapshot (consolidated)

Note: The table above reflects consolidated data as presented.

Market impact: what investors are reacting to

The immediate market reaction tracked the year-on-year decline in profitability metrics in Q4 FY26. EBITDA fell to ₹170 crore from ₹211 crore, while PAT slipped to ₹98.30 crore from ₹130.09 crore, even though revenue from operations rose marginally to ₹2,163.25 crore.

At the segment level, the quarter showed a clear split: lighting and consumer durables grew 9% YoY to ₹501 crore, while steel pipes and strips revenue fell 2% YoY to ₹1,662 crore. Investors also had updated operational targets to consider, including the FY27 steel volume target of about 11 lakh tonnes and export target of 2.5 lakh tonnes.

Why the quarter matters: signals from margins, mix, and targets

The company’s commentary emphasised sequential improvements in both margins and profit, with Q4 FY26 margins at around 7.9% and PAT up 23% sequentially versus Q3 FY26. But the year-on-year decline in EBITDA and PAT suggests pressure points remain, including pricing pressures cited by management.

Beyond near-term results, the company’s stated targets for wires and cables and the scale-up plan for steel volumes and exports provide reference points for tracking execution. The final dividend recommendation of ₹2.50 per share adds a shareholder-return detail alongside the operating updates.

Conclusion

Surya Roshni’s Q4 FY26 numbers showed steady revenue but weaker year-on-year profitability, and the stock fell 11.50% to ₹218.45. Management highlighted sequential improvement in Q4 and laid out FY27 targets across wires and cables, steel volumes, and exports. The next formal milestone is the scheduled board meeting on 25/05/2026 to consider audited results and dividend-related items, along with the earnings conference call for operational discussion.