Surana Telecom and Power Ltd Management Discussions

Surana Telecom and Power Limited was incorporated as a Private Limited Company on 14.08.1989 as Surana Petro Products Private Limited and was engaged in the business of manufacturing of Petro Products such as Petroleum Jelly and Telecom products such as Jointing Kits. Thereafter, the Company was converted into a Public Limited Company on 09.07.1993. In 1994, the Company ventured into the Telecom sector with the production of Optic Fibre Cables and consequently, name of the Company was changed to Surana Telecom Limited on 05.08.1994. In 2007 the Company diversified into the power sector with the manufacturing of low tension and high-tension power cables and setting up of 1.25 MW wind power generation facility. In order to reflect the diversity, the name of the Company was again changed to "Surana Telecom and Power Limited" on 11.10.2007. In 2008, taking cue from the increasing recognition for non-conventional energy and anticipating demand primarily in the field of Solar Photovoltaic cells, the company ventured into manufacturing of Solar Modules and other Solar photovoltaic products.

During the year 2009-2010, a Scheme of arrangement was entered by the Company with M/s Surana Ventures Limited which was sanctioned by Honble High Court of Andhra Pradesh on 28.06.2010 and became effective from 28.07.2010, pursuant to which the "Solar Undertaking" was merged with M/s Surana Ventures Limited (the name has been changed to Surana Solar Ltd). The Company is into the business of generation of solar energy. In the year 2011-12, the Company had set up 5 MW Solar Power Project in Gujarat, with this it has successfully ventured into Solar Power Generation. The Company and its subsidiaries own a total installed capacity of 15 MW across states in India.

In the current year, the Company has participated in solar tenders under Component C of the PM-KUSUM Scheme.

A) INDUSTRY STRUCTURE AND DEVELOPMENTS:

SOLAR ENERGY:

The global solar industry continued to witness steady growth during 2025-26, with solar power remaining the leading source of new renewable energy capacity. Continued improvements in technology, declining equipment costs, and increasing investments in energy storage and grid infrastructure have supported wider adoption across both developed and emerging markets. While some mature economies experienced slower growth due to infrastructure and policy-related challenges, demand remained strong globally as countries accelerated their transition towards cleaner sources of energy.

India further strengthened its position as one of the worlds leading solar markets, with installed solar capacity crossing 120 GW during the year. Growth was driven by healthy additions in utility-scale projects, rooftop installations, and distributed solar systems. Government initiatives such as the PM Surya Ghar: Muft Bijli Yojana and the Production Linked Incentive (PLI) Scheme continued to encourage investments in renewable energy and domestic manufacturing. At the same time, increased focus on energy storage, transmission infrastructure, and local manufacturing has strengthened the overall renewable energy ecosystem and improved long-term sector resilience.

Looking ahead, Indias commitment to achieving 500 GW of non-fossil fuel capacity by 2030 and net-zero emissions by 2070 provides a strong foundation for sustained growth. Supported by favourable policies, rising electricity demand, and growing participation from both public and private sectors, the solar industry is expected to remain one of the key drivers of the countrys clean energy transition.

B) OPPORTUNITIES AND THREATS:

The Indian solar industry continues to face certain challenges, including fluctuations in raw material prices, evolving global trade dynamics, grid integration constraints, land acquisition issues, and delays in project execution. Although domestic manufacturing capacity has expanded considerably, dependence on imported inputs for certain components continues to expose the sector to supply chain risks and pricing volatility. Increasing competition and pressure on project margins also remain key concerns.

Despite these challenges, the sector is well positioned for sustained growth. Continued policy support through initiatives such as the Production Linked Incentive (PLI) Scheme and the PM Surya Ghar: Muft Bijli Yojana, coupled with rising investments in domestic manufacturing, energy storage, and transmission infrastructure, is strengthening the renewable energy ecosystem. Technological advancements, improving manufacturing capabilities, and growing demand for clean energy are enhancing the competitiveness of the sector. In addition, Indias expanding role in the global solar supply chain and increasing exports of solar modules and related products present significant opportunities for long-term growth and value creation.

C) SEGMENT-WISE OR PRODUCT WISE PERFORMANCE:

During the year under review, the Company has recorded a total income of Rs. 9220.73 Lakhs and made a net profit of Rs. 2,468.09 Lakhs against total income of Rs.4418.57 Lakhs and net profit of Rs. 2453.94 Lakhs in the previous financial year 2024-25.

The following segment wise turnover in percentage wise during the financial year ended 31.03.2026:

Renewable Energy (Solar & Wind) -	6.05%
Trading & Others-	93.95%

D) BUSINESS OUTLOOK:

Solar power in India at current levels is cheaper than electricity generated through coal, natural gas or other fossil fuel options. Support from various central and states government for solar power industry is continuously increasing. The Government of India has set an ambitious target of achieving 500 GW of renewable energy capacity by 2030 which includes 280 GW of solar power. With this the market players in India now have enough incentive to move to clean sources of energy. In view of the huge demand for solar power and company having considerable resources in this line of activity, the Company expects to get benefits from the proposed huge installation of solar power capacity.

E) RISKS AND CONCERNS:

Your company being in the business of generation of solar energy have risks with land acquisition, tariff bidding, government policies etc. The Company has sufficient risk management policies in place that act as an effective tool in minimising the various risks that the businesses are exposed to during the course of their day-to-day operations as well as in their strategic actions.

F) INTERNAL CONTROL SYSTEM AND ITS ADEQUACY:

The Company has adequate Internal Control Systems and Procedures with regard to purchase of Stores, Raw Materials including Components, Plant and Machinery, equipment, sale of goods and other assets. The company has clearly defined roles and responsibilities for all managerial positions and all operating parameters are monitored and controlled. The Company designs and maintains accounting and internal control systems to provide reasonable assurance at reasonable cost that assets are safeguarded against loss from unauthorized use or disposition, and that the financial records are reliable for preparing financial statements and maintaining accountability for assets.

The company has an Internal Audit System commensurate with its size and nature of business. M/s Sekhar & Co., a firm of Chartered Accountants, are acting as Internal Auditors of the Company. Periodic reports of Internal Auditors are reviewed in the meeting of the Audit Committee of the Board. Compliance with laws and regulations is also ensured and confirmed by the Internal Auditors of the company. Standard operating procedures and guidelines are issued from time to time to support best practices for internal control.

G) FINANCIAL PERFORMANCE & OPERATIONAL PERFORMANCE:

A. FINANCIAL PERFORMANCE:

Capital Structure:

The Equity Share Capital of the Company as on 31^st March 2026 is Rs.1357.59 lacs comprising of 13,57,59,963 Equity Shares of Re. 1 each fully paid.

Other Equity:

The Other Equity of the Company for the current year is Rs. 16638.81 lacs and in the previous year was Rs. 14092.52 lacs

Property, Plant and Equipment:

During the year, the Company has sold Property, Plant and Equipment amounting to Rs.438.65 lacs as against Rs. 3122.24 lacs in the previous year. The total net block of assets as on 31.03.2026 is Rs.1753.58 lacs as against Rs. 1983.87 lacs in the previous year.

Inventories:

Inventories, as on 31^st March, 2026, is Nil in the current and previous year.

Trade Receivables:

Trade Receivables amounting to Rs.4158.33 lacs as on 31^st March, 2026 and Rs. 88.54 lacs in the previous year.

Cash and Cash Equivalents

Cash and Cash Equivalents, as on 31^st March, 2026, amounting to Rs. 6.70 lacs as against Rs. 233.50 lacs in the previous year.

Bank balances other than cash

Bank balances with Scheduled Banks, as on 31^st March, 2026, amounting to Rs.127.62 lacs as against Rs. 121.70 lacs.

Loans (Noncurrent):

Loans and Advances amounting to Rs.15868.12 lacs as on 31^st March, 2026, as against Rs. 7982.16 lacs in the previous year.

Other Current Assets:

Short Term Loans and Advances amounting to Rs.62.09 lacs as on 31^st March, 2026, as against Rs. 135.54 lacs in the previous year.

Current Liabilities:

Current Liabilities amounting to Rs.1544.60 lacs as on 31^st March, 2026, as against Rs. 250.34 lacs in the previous year.

B. OPERATIONAL PERFORMANCE:

Turnover:

During the year 2025-26, the Net turnover of the Company was Rs.5403.30 lacs and Rs. 821.63 lacs in the previous year. Other Income as on 31^st March, 2026 is Rs.3817.43 lacs as against Rs. 3596.94 lacs in the previous year.

Depreciation and Amortization:

The Company has incurred a sum of Rs.208.82 lacs towards depreciation and amortization for the year and Rs. 398.99 lacs in the previous year.

Net Profit:

The Net Profit of the Company after tax is Rs.2468.09 lacs as on 31.03.2026 and Rs 2,453.94 lacs in the previous year. Earnings per Share:

Basic Earnings per Share for the year ended 31.03.2026 is Rs. 1.82 for Face Value of Rs.1 and Rs 1.81 per share for the year ended 31.03.2025.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

Ratios	2026	2025	Change (in %)
Current Ratio	2.86	10.54	(72.87)
Debt Equity Ratio	0.40	0.06	100.00
Debt Service Coverage Ratio	17.88	141.67	(87.38)
Return on Equity Ratio	0.13	0.15	(13.66)
Debtors Turnover (no. of days)	1.30	9.28	(86.00)
Net Capital Turnover Ratio	1.33	1.51	(11.92)
Net Profit Margin	0.65	0.68	(4.41)
Return on Capital Employed	0.17	0.20	(15.58)

Notes:

1. Current Ratio: Change in the Current ratio is due to decrease in the Current Assets on account of realisation of current assets.

2. Debt Service Coverage Ratio: Change in Debt Service Coverage ratio is due to repayments made for the year.

3. Inventory Turnover: Inventory turnover is zero due to no inventory in current Financial Year.

4. Debtor Turnover: Change in Trade Receivables ratio is due prudent credit policy of the company.

5. Return on capital employed: Decrease in Return on Capital employed is due to decrease in EBIT & borrowings.

HUMAN RESOURCE DEVELOPMENT AND INDUSTRIAL RELATIONS:

The Company believes that the quality of its employees is the key to its success in the long run and is committed to provide necessary human resource development and training opportunities to equip them with skills, which would enable them to adapt to contemporary technological advancements.

Industrial Relations during the year continues to be cordial and the Company is committed to maintain good industrial relations through negotiations, meetings etc.

CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis describing the Companys Objectives and Expectations may be "Forward-Looking Statements" within the meaning of applicable Securities Laws and Regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys Operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, technological obsolescence, changes in the Government Regulations and Policies, Tax Laws and other Statutes and incidental factors.