Ladies and gentlemen, good day and welcome to Surya Roshni Limited., Q2 FY 2026 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero. On your touchstone phone, please note that this conference is being recorded. I now hand the conference over to Mr. Raju Bistar, Managing Director of Surya Roshni Limited. Please go ahead.
Thank you very much. Good evening, everyone. On behalf of Surya Roshni Limited., I extend a very warm welcome to everyone for joining us today. On this call, we are joined by my colleague, Mr. Vinay Suryaji, MD, Surya Roshni Limited., and Mr. B.B. Singal, CFO and Company Secretary, Mr. Gaurav Jain, CEO, Steel Operations, Mr. Vasumitra Pandey, CEO for Lighting and Consumer Durables Segment, also Mr. Naresh Singal, who is our Executive Director for Steel Operations, and SGA, our Investor Relation Advisor. Moving on to the overall financial performance of the company, in Q2 FY 2026, our consolidated revenue grew 21% year-on-year to INR 1,845 crore, while EBITDA rose 69% to INR 141 crore, with margin improving to 7.6%. PAT is more than double, rising 117% year-on-year to INR 74 crore, driven mainly by better realization, product mix, and operating leverage.
Our steel pipe and strip business reported about 24% revenue growth year-on-year, led by strong export and higher share of value-added product. Exports business were up by 45%, helping us achieving the highest-ever Q2 volume in the company history. EBITDA more than doubled to INR 102 crore, and profitability per ton improved by 73% year-on-year to about INR 5,013 per ton. The lighting and consumer durable business continued to deliver steady growth, with revenue up by 10% year-on-year to about INR 434 crore, supported by festive demand and double-digit volume growth in LED lamps, batten, and street light segments. Margin expanded to about 9% from 7.7% in Q1, reflecting better mix efficiency gain and cost control.
We are a zero-debt company with a net cash surplus of INR 250 crore as of September 30, 2025, and the Board of Directors has also declared an interim dividend of INR 2.5 per share, reflecting our continued commitment to shareholder value creation. Now, coming to lighting and consumer durable, in Q1 FY 2026, our lighting and consumer durable segment delivered a healthy performance, growing 10% year-on-year, supported by improved festive season demand and healthy contribution for both lighting and durable segment. EBITDA margin expanded sharply to 9% from 7.7% in this quarter, reflecting better operating leverage, a superior product mix, and disciplined cost management despite continued pricing pressure in few LED categories. The professional lighting business also maintained its strong momentum, growing by 25% in Q2 FY 2026, mainly driven by healthy demand across solar, facade, industrial, and outdoor lighting segments.
The order book remained robust at over INR 150 crore for lighting, providing good visibility for the coming quarter as well. We remain confident in achieving our full-year guidance for the lighting and consumer durable business to a top line in the range of about INR 1,900 crore and EBITDA of about INR 180 crore. Looking ahead, our focus will remain on driving innovation, expanding our product portfolio, and deepening our distribution, and exploring new avenues of growth in adjacent areas such as renewable energy. Now, moving on to the steel pipe and strip segment, in Q2 FY 2026, our steel pipe and steel segment delivered a strong performance marked by a healthy rebound in volume and a significant improvement in profitability despite an overall challenging operating environment. Revenue for the quarter grew by 24% year-on-year to INR 1,411 crore, mainly driven by a 26% increase in overall volume and a richer product mix.
EBITDA for the quarter more than doubled year-on-year to about INR 102 crore, with margin expanding sharply on the back of better realization, disciplined pricing, and improved operating leverage. On a per-ton basis, EBITDA stood at INR 5,013, representing a 73% year-on-year increase and a 72% improvement. Despite some pressure from falling steel price in July, our inventory was efficiently managed, and the notional inventory loss of about INR 500 per ton was largely offset through higher operating efficiency and realization. We achieved the highest-ever second-quarter volume in the company history of steel segment. From an operational standpoint, capacity utilization stood at about 80% during the quarter. Our export performance was particularly strong, recorded a 45% growth in volume and a 29% increase in value terms year-on-year basis.
Within product categories, API pipes grew by nearly 86% year-on-year, supported by robust demand from mainly private oil and gas players, while cold rolling and strip segment continued to perform well following the commissioning of the new Bahadurgarh mill. However, demand from GI pipe was largely catered to the agriculture segment, which was impacted by the extended monsoon and delay in government fund releases, particularly to state agencies, which slowed rural and infrastructure project execution. We also maintained a healthy order book of around INR 750 crore, comprising orders from the oil and gas segment, water and export segment as well, providing strong visibility for the second half of the year. With a solid order book, operational efficiency, and new capacity coming on stream, we are well-positioned to sustain performance improvement in the coming months as well.
Accordingly, we have prudently recalibrated our full-year volume guidance to around 1 million tons, reflecting a balanced outlook grounded in realistic near-term demand trends and the visibility of strong execution in the second half. Now, I would like to request our CFO, Mr. B.B. Singal, to share his thoughts on some financial numbers. Thank you.
Thank you, respected MD sir, and a very good afternoon to all the participants on the call. For the quarter, the revenue was INR 1,845 crore as compared to INR 1,529 crore, a growth of 21% year-on-year basis. EBITDA and PAT stood at INR 141 crore and INR 74 crore as compared to INR 83 crore and INR 34 crore, a growth of 69% and 117% year-on-year basis, respectively. For the first half of FY 2026, the revenue was INR 3,450 crore as compared to INR 3,422 crore. EBITDA and PAT stood at INR 223 crore and INR 108 crore as compared to INR 242 crore and INR 127 crore, respectively. In lighting and consumer durable, for the quarter, the revenue stood at INR 434 crore as against INR 395 crore, a growth of 10% by year-on-year basis. EBITDA and PBT stood at INR 39 crore and INR 29 crore, a growth of 10% and 11% by year-on-year basis, respectively.
For H1 FY 2026, the revenue stood at INR 832 crore as against INR 781 crore, a growth of 7% by year-on-year basis. EBITDA and PBT stood at INR 70 crore and INR 51 crore as compared to INR 70 crore and INR 52 crore, respectively. In the steel pipes and strips, during Q2 FY 2026, the revenue was INR 1,411 crore as compared to INR 1,135 crore, a growth of 21% by year-on-year basis. Similarly, EBITDA per metric ton stood at INR 5,013 compared to INR 2,901, a growth of 73% by year-on-year basis. EBITDA and PBT stood at INR 102 crore and INR 70 crore as against INR 48 crore and INR 20 crore, a growth of 113% and 258% by year-on-year basis, respectively. For H1 FY 2026, the revenue was INR 2,618 crore as compared to INR 2,643 crore.
Similarly, EBITDA per metric ton stood at INR 4,037 compared to INR 4,653. EBITDA and PBT stood at INR 154 crore and INR 95 crore as against INR 172 crore and INR 117 crore, respectively. Improved capacity utilization, working capital optimization, and cost rationalization enabled us to become a zero-debt company and have a cash surplus fund of INR 246 crore in H1 FY 2026. In Q2 FY 2026, our net working capital cycle was 63 days, with an ROCE of 16.46% and a return on equity (ROE) of 11.90%. With this, I conclude the presentation, and we can now open the floor for further questions and answers. Thank you.
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Viraj Mehta from Enigma Investment Partners LLP. Please go ahead.
Yeah, hello. Thank you, Raj. Sir, my question [Foreign language ], sir, roughly INR 3.8 lakh [Foreign language ] first half [Foreign language ] INR 8 lakh [ Foreign language] so you are saying [Foregin language] ?
[Foreign language] gross [Foreign language] INR 410,000 lakh [Foreign language] Q1, Q2 [Foreign language] Q3 [Foreign language ] INR 260,000 lakh [Foreign language ] Q4 [Foreign language ] INR 300,000 lakh [Foreign language] INR 980,000 lakh [Foreign language] volume [Foreign language] originally [Foreign language] INR 1,050,000 [Foreign language] revise [Foreign language ] 60,000-70,000 ton capacity [Foreign language] Q1 [Foreign language] shortfall [Foriegn language] cover [Foreign language]
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See, US was one-off, and majorly [Foreign language] volume [Foreign language ], European country [Foreign language] Canada [Foreign language ] European countries Canada [Foreign language] Middle East [Foreign language] overall [Foreign language ] brand [Foreign language] , recognize [Foreign language] , so [ Foreign language] export [Foreign language] growth [Foreign language].
Right, right.
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Should you have any follow-up questions?
Yes, sir, just last one, one question, just one last question. [Foreign language]
I'll stop again, sir, but please join the queue. Thank you. Ladies and gentlemen, in order to ensure the management is able to address questions from all the participants in the conference, please limit yourselves to two questions per participant. Should you have any follow-up questions, you may rejoin the queue. The next question is from the line of Rachna from Simple. Please go ahead.
Hello, hello, hello, I am speaking.
Good evening.
G ood evening, sir. Sir, with the BEE transition in the fan industry January 2026 [Foreign language ], so how are we planning to take price increase in fans category? And given that the current competition intensity is high in fans, so how do you see the inventory level shaping up across channels?
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Yes, yes, go ahead.
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Thank you. The next question is from the line of Andrey Purushottam from Cogito Advisors. Please go ahead.
Yeah, I think you give guidance for your lighting division in terms of revenue and EBITDA. Could you give the same for the steel business as well, and so and therefore the total for this year?
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Thank you. The next question is from the line of Kiran from Table Tree Capital. Please go ahead.
Thank you sir for the opportunity. [Foreign language]
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Thank you. The next question is from the line of Aditya pal from MSA Capital Partners. Please go ahead.
Hi, thank you so much, sir. Am I audible?
Yes, yes, very clear.
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Thank you. The next question is from the line of Raj Mehta from Raj Mehta & Associates.
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Thank you। The next question is from the line of Savita from Golden Plant। Please go ahead।
Congratulations for the good performance.
Thank you boss
Second, I wanted to know like what sort of R&D expenses we are doing in electrical, because of and how much we are like to get affected with this issue going in the China.
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What is your import content in the lighting business from China? Any plans to localize that?
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We are quite exposed to that global bugari. What is the plan for localization?
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Thank you. Thank you very much, ladies and gentlemen. We will take this as the last question for today, due to time constant. And I now hand over the conference over to Mr. B.B. Singal for closing comments.
[Foreign language] Thank you everyone for well. We appreciate your interest in Surya Roshni Limited. I sincerely once again thank our MD sir and the CEO for sparing their valuable time and addressing queries raised by participants who attended the call. Any further queries, can you contact S&GA, our Investor Relation advisor. Thanks. Good evening.
Thank you very much.
Thank you very much on behalf of Surya Roshni Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.