SURYAROSNI Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
ConCallIQ research layer
Signal, with the source still visible.
Use the controls below to narrow the view, then follow the evidence into the next layer of context.
Revenue
₹1,927 Cr
verified against source
Revenue YoY
3%
reported change
EBITDA
₹148 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Surya Roshni delivered mixed Q3 FY26 results with consolidated revenue of ₹2,927 crore (up 3% YoY) but EBITDA margin contraction to 7.7% versus 8.5% year-ago due to steel price volatility and API segment weakness. Steel division volumes missed guidance at 2.37 lakh tons (shortfall of ~10-15% vs ambition) primarily due to 35% API volume decline from oil & gas sector weakness, though inventory losses of ~₹12 crore and ₹89 crore impact from API degrowth hurt EBITDA. Lighting segment performed better at ₹476 crore revenue (+6% YoY, +10% QoQ) driven by festive demand and LED volume growth. Management maintained full-year volume guidance of 9.35-9.40 lakh tons but faces execution risk in Q4 given Q1 SAP issues and Q3 steel headwinds. Forward guidance appears optimistic with FY27 targets of 11 lakh tons steel volumes and ₹750 crore combined EBITDA, contingent on government infrastructure spending, Jal Jeevan Mission revival, and successful ERW pipe penetration in oil & gas. Key concerns include persistent EBITDA margin pressure, market share questions from analysts, and shareholder returns via buyback/de-merger requests. Working capital efficiency improved (61 days cycle) with net cash surplus of ₹250 crore providing balance sheet flexibility for capex and potential capital return.
Colored figures show movement against the previous available record.
Guidance to track
- Management maintained volume guidance despite Q3 shortfall, projecting Q4 volumes of 2.0-2.3 lakh tons driven by restocking momentum from December 2025 and consistent record-breaking dispatches in January-February.
- Management committed to minimum 11 lakh tons for FY27, implying ~17-18% volume growth, contingent on infrastructure spending revival and API segment recovery.
- Management guided ₹5,000/ton EBITDA floor for FY27 full year, generating ₹540-550 crore EBITDA from steel division alone, versus ~₹480 crore estimated for FY26.
- Lighting and consumer durables expected to cross ₹2,100 crore turnover next fiscal year with ₹200 crore EBITDA, driven by wire launches and professional lighting expansion.
- Management provided assurance to shareholders of ₹750 crore combined EBITDA target for FY27, up from estimated ₹580-600 crore for FY26, enabling potential capital returns.
Risks flagged
- Oil & gas sector API pipe volumes declined 35% YoY in Q3, impacting ~₹89 crore of steel EBITDA. While management expects Q1 FY27 recovery with Jal Jeevan Mission tenders, the timing remains uncertain and analyst questioned whether weakness extends 2-3 quarters.
- Analyst raised concern that EBITDA has been flat for 3 years and management has consistently missed guidance targets. Steel EBITDA margin at ~₹4,800-4,900/ton is below historical levels, with management acknowledging headwinds from HR coil pricing and selective order avoidance.
- ~10,000 tons annually of European exports face disadvantage from CBAM; management offsetting via Middle East and Africa expansion but incremental costs remain. Analyst also raised green steel certification as potential mitigation requiring renewable energy adoption.
- Multiple analysts pressed on shareholder returns via buyback or de-merger given accumulated cash surplus and zero-debt status. Management acknowledged suggestions as valid but provided only verbal commitment to interim dividends and board discussions without concrete timeline.
Key quotes
- We are a zero debt company with a net cash surplus of ₹250 crore and we will try to ensure shareholders get advantage through interim dividends
- Minimum ₹5,000 per ton EBITDA full year FY27 and ₹540-550 crore EBITDA from steel division alone — this is a commitment we want to give to investors
- We are the first company in India whose ERW pipe has been approved by ONGC for seamless pipe replacement — this is a very big silver lining for Surya Roshni in terms of both volume and margins
Research modules