Surya Roshni Limited reported a 3% YoY revenue growth to ₹1,927 crores for Q3 FY2026, with EBITDA at ₹148 crores. While the Steel division faced headwinds from inventory loss, both Lighting and Steel segments demonstrated sequential improvements. Management reaffirmed confidence in the full-year volume guidance and highlighted strategic moves to mitigate export challenges and leverage new opportunities in the API Pipe segment.
Q3 FY2026 Consolidated Financial Overview
For the quarter ended December 31, 2025, Surya Roshni Limited reported consolidated revenue of ₹1,927 crores, marking a 3% increase year-on-year. Consolidated EBITDA stood at ₹148 crores, yielding a margin of 7.7%. Consolidated Profit After Tax (PAT) for the quarter was ₹80 crores.
Over the nine-month period ending December 2025, revenue reached ₹5,377 crores, with EBITDA of ₹371 crores. The company remains a zero-debt entity, holding a net cash surplus of ₹245 crores as of the end of the quarter.
Lighting and Consumer Durables Segment Performance
The Lighting and Consumer Durable segment delivered stable results, achieving segment revenue of ₹476 crores in Q3 FY2026, representing 6% YoY growth and nearly 10% sequential growth over Q2 FY2026, driven by strong festival demand in consumer lighting.
EBITDA margin for this segment stood at approximately 8.8%. Management noted strong volume growth across LED bulb, Batten, and Down Lighter segments, alongside consistent traction in Professional Lighting for infrastructure applications like airports and railways.
Steel Pipe and Strip Segment Stability
The Steel Pipe and Strip segment reported revenue of ₹1,451 crores, supported by a dispatch volume of 2.37 lakh tonnes. EBITDA for the quarter was ₹106 crores, with margins around 7.3%.
Profitability was impacted by a one-time inventory loss of around ₹500 per tonne due to sharp steel price corrections in October and November. Despite this, EBITDA improved sequentially by about 4% quarter-on-quarter due to better operating leverage and partial recovery in realisations.
Export activity contributed almost 19% of the volume growth in Q3 FY2026, with export volumes growing almost 10% year-on-year. The segment order book stood at approximately ₹500 crores at quarter-end.
Financial Health and Operational Confidence
CFO B. B. Singal confirmed that improved capacity utilization and cost rationalization led to the zero-debt status. In Q3 FY2026, the net working capital cycle was 61 days, with a Return on Capital Employed (ROCE) of 17.57% and Return on Equity (ROE) of 12.65%.
Outlook and Guidance Discussion
Management stated they are moving ahead with an expected volume of 2,90,000 to 3,00,000 tonnes in Q4, targeting a full-year volume of 9,35,000 to 9,40,000 tonnes.
Looking ahead, management provided confidence targets for the Steel division in FY 2027, projecting a minimum EBITDA per tonne of ₹5,000, leading to an overall Steel division EBITDA of ₹540 crores to ₹550 crores.
The Lighting division expects turnover to reach ₹2,100 crores next year, with an anticipated EBITDA of ₹750 crores by FY 2027.
Addressing Market Concerns
Regarding the Q3 volume shortfall (below the 2.6 lakh tonne target), management attributed the main factor to a 35% degrowth in the API segment (Oil and Gas). However, restocking has begun since the end of December.
On export headwinds like EU quotas (CBAM), management confirmed that the Middle East and African markets are being leveraged to offset potential contractions, noting that the export of Hollow Sections is reviving. Furthermore, the company successfully dispatched its first order of 4,500 tonnes of ERW Casing Pipes, an alternative to Seamless Pipes previously used by ONGC.
Regarding recurring guidance misses, management acknowledged keeping targets slightly high but stressed that external factors like SAP issues, price correction in Steel, and geopolitical events were controlling factors. The commitment to shareholder value was reaffirmed, noting that the suggestion of a share buyback would be placed before the Board for consideration.
Source: BSE
