Surya Roshni Q2 Review: IDBI Capital Maintains 'Hold' On Muted Earnings — Check Target Price

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

Surya Roshni Ltd.’s Q2 FY26 performance was below expectations. Revenue grew 21% YoY to Rs 18.4 billion, driven by a 24% YoY increase in steel pipes segment, while LCD segment grew by 7% YoY to Rs 4 billion.

Consolidated Ebitda margin expanded 142 bps YoY to 6.4%, driven by steel pipe segment. Ebitda/tonne for steel pipes increased by 73% YoY to Rs 5,013/tonne, led by improved product mix (API pipes), pricing discipline and operational efficiencies despite a Rs 500/tonne inventory loss.

Management has further lowered its volume guidance for the steel pipe segment to 0.98 million tonne due to the shortfall in Q1 and expects a consolidated Ebitda of Rs 620-625 crore (previously Rs 700 crore).

We cut FY26E/FY27E Ebitda estimates by 14%/1% and derive target price of Rs 308 based on SOTP method. We maintain our Hold rating on the stock.

Click on the attachment to read the full report: 

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.