Surya Roshni Ltd Management Discussions

Company Review

Founded in 1973 as Prakash Tubes Private Limited, Surya Roshni (also referred to as the Company) has grown under the visionary leadership of Mr. J. P. Agarwal into a prominent market player, with an estimated turnover of Rs 7,435 crore for 2024-

25. Initially focussed on steel pipe manufacturing in Bahadurgarh, Haryana, the Company made its first major move into diversification in 1984 with its entry into the lighting industry. The Company continued to expand its portfolio by entering the PVC pipe market in 2010, and further diversified into consumer durables like fans and home appliances, in 2014-15. Today, the Companys flagship brands, Surya and Prakash Surya, are synonymous with superior quality and reliability, holding a significant presence both in India and more than 50 countries globally.

The Company stands out for its debt-free status, a streamlined balance sheet, and a deep-seated commitment to innovation, providing a solid financial foundation that enables it to maintain its leadership position in the industry. The Company dominates the steel pipes & strips segment, offering an extensive product range that caters to key sectors, including agriculture, infrastructure, oil & gas, water transportation, and construction. Surya Roshnis world-class manufacturing facilities are strategically located in Bahadurgarh (Haryana), Malanpur (Madhya Pradesh), Hindupur (Andhra Pradesh), and Anjar (Gujarat), where a state-of-the-art 3LPE coating line has been integrated to enhance product durability. To further strengthen manufacturing capabilities, the Company is increasing its capex investment from Rs 75 crore to Rs 125 crore at its Hindupur facility, aimed at ramping up production capacity by 2,00,000 tonnes annually. Additionally, Rs 75 crore is being invested at its Bhuj-Anjar facility to manufacture large diameter pipes, further enhancing its product offerings. The Companys new spiral plant in Gwalior commenced in February, 2025 and expand of its cold rolling operations at Bahadurgarh is as per schedule and to begin operations in H1FY26, respectively. With a total capex plan of Rs 500 crore over the next two years, Surya Roshni plans to increase its overall capacity from 12 lakhs tonnes to 19 lakhs tons, reinforcing its leadership and operational scale in the market.

The Companys lighting & consumer durables portfolio includes LED lamps, streetlights, tube lights (FTL), GLS lamps, and HID lamps, as well as fans and home appliances. Guided by the idea of Lighting Every City, Every Home, the Company has become Indias second-largest lighting manufacturer. The Companys Noida- based R&D facility drives continuous innovation in LED technology, keeping Surya Roshni at the forefront of the industry.

Surya Roshni has made significant inroads into the Fast-Moving Electrical Goods (FMEG) market, with a diverse range of fans and home appliances. Supported by an expansive dealer and distribution network, the Company ensures deep market penetration across Tier-II, Tier- III cities, and rural India. Combining brand strength, innovation, operational excellence, and prudent financial management, Surya Roshni as earned its reputation as an industry leader, focussed on sustained growth and delivering long-term value for stakeholders.

Industry Landscape and Trends

Indias economy is projected to grow by 6.4% in 2024-25, retaining its position as one of the fastest-growing major economies despite global uncertainties. Key drivers include strong domestic demand, increased capital expenditure, and a resilient services sector, contributing 55.3% to Gross Value Added (GVA). IT and computer services exports continue to grow in double digits, while the industrial sector is expected to expand by 6.2% in 2024-25, driven by electricity and construction. However, manufacturing growth may moderate to 5.3%, down from 9.9% last year, due to weaker global demand and reduced corporate investments.

The infrastructure sector, valued at approximately USD 223.59 billion in 2025, is projected to reach USD 353.11 billion by 2030, reflecting a CAGR of 9.57%. This growth is expected to drive higher demand for Surya Roshnis steel pipes, critical in construction and water supply. Meanwhile, Indias agricultural sector remains strong, maintaining a 5% average annual growth from 2016-17 to 2022-23, In Q2 2024-25, the sector grew by 3.5% growth, supported by irrigation infrastructure development, which increases demand for Surya Roshnis water management pipes.

The Indian oil and gas market, valued at USD 710.5 million in 2024, is projected to witness a CAGR of 5.23% by 2033. Technological advancements in exploration, extraction, and production are unlocking new reserves, reducing costs, and enhancing industry efficiency. This, alongside expanding infrastructure, is expected to increase demand for distribution pipes, creating opportunities for Surya Roshni.

Indias real estate market, valued at USD 332.85 billion in 2025, is anticipated to reach USD 985.80 billion by 2030, registering a CAGR of 24.25%. Government initiatives like the Jal Jeevan Mission, focussed on water infrastructure, create an annual market opportunity worth Rs 1 lakh crore. The rising demand for housing and infrastructure will likely boost pipe demand, further strengthening the Companys market presence.

(Source:https://www.mordorintelligence.com/industry-reports/infrastructure-sector-in-india,

https://pib.gov.in/PressReleasePage.aspx?PRID=2097886#:~:text=ln%20recent%20years%2C%20the%20agriculture,rate%20of%203.5%20per%20cent.)

Surya Roshnis solid brand presence and diverse product portfolio position it to seize to growth opportunities in various industries. The Companys reach in rural and semi-urban markets enhances its customer base and market share. The push for infrastructure development, particularly in agriculture, construction, and water sectors, presents growth opportunities through its steel pipes & strips division. Additionally, the rising demand for energy- efficient lighting drives growth in its lighting & consumer durables segment, supported by ongoing LED technology advancements.

A) Steel Tubes & Pipes

Global Overview

Steel tubes & pipes are integral cylindrical steel structures valued for their strength, durability, and resistance to corrosion, making them indispensable across various industries. Though similar in appearance, they each serve specific functions. Steel tubes, with their thinner walls, are primarily used in structural applications like frameworks, railings, and precision machinery. In contrast, steel pipes, characterised by their thicker walls, are designed for high-pressure systems, efficiently transporting liquids, gases, and other materials. Their reliable performance makes them crucial in construction, energy, and infrastructure projects.

The global market for steel pipes & tubes, valued at USD 171.8 billion in 2023, and at USD 182.62 billion in 2024 projected to reach USD 297.73 billion by 2032, expanding at a CAGR of 6.3% during the forecast period (2025-32). This growth is driven by rising energy demand, boosting petroleum exploration, drilling, and petrochemical plant projects. Moreover, expanding pipelines infrastructure projects, particularly in Europe, are fueling further demand.

Government-led fiscal stimulus and high business confidence are further driving demand for steel pipes in large-scale projects. Meanwhile, the industry is witnessing a shift towards sustainability, with a growing emphasis on recycled steel and eco-friendly production processes, aligning with the global focus on environmental responsibility. (Source:https://straitsresearch.com/report/ steel-pipes-and-tubes-market, https://www. researchandmarkets.com/ reports/5687741/2025-steel-tubes-market- outlook-report-industry)

Indian Overview

The Indian steel pipes & tubes market, valued at USD 32.88 billion in 2023, is projected to witness a CAGR of 6.43% from 2024 to 2030, reaching USD 37.69 billion by 2030. This expansion is driven by the rising demand for oil and gas, the growing transportation sector, and a resurgence in construction activities. Increased investment in R&D to enhance production facilities is also fuelling market growth. The oil and gas sector remains the largest contributor, with steel pipes playing a vital role in transporting gas and liquids across various applications.

In a bid to foster domestic manufacturing and safeguard consumer interests, the Indian government has mandated quality standards for steel pipes and tubes. This move is further supported by large-scale government initiatives, including PMAY, AMRUT, the Smart Cities Mission, alongside national projects like the National Infrastructure Pipeline and Sagarmala. These initiatives are significantly boosting demand for steel, particularly in the housing, infrastructure, and water management. The Union Budget for 2025-26 has allocated Rs 11.21 lakhs crore for infrastructure development, a 10.1% increase from the revised estimate of 2024-25. This includes Rs 1,16,292 crore for roads and bridges, prioritising expressways, national highways, and regional connectivity. The budget also emphasises strengthening tourism infrastructure, with plans to develop 50 new destinations, fostering regional growth and employment. Additionally, the extension of the Jal Jeevan Mission will provide potable water to 100 crore additional households, further boosting demand for steel pipes in water supply infrastructure.

As India works towards becoming a $5 trillion economy, the Ministry of Steel is dedicated to addressing the anticipated demand for 160 million tonnes of steel by building a competitive, efficient, and sustainable industry that adheres to international safety and quality standards.

The National Steel Policy (NSP) reinforces this by promoting self- sufficiency, capacity expansion, and globally competitive manufacturing capabilities, while boosting domestic steel consumption.

Opportunities and Growth Drivers Water

India faces a dire water shortage, exacerbated by the over-extraction of groundwater, declining freshwater reserves, and insufficient access to safe drinking water. Though India accounts for just 4% of the worlds freshwater, it supports 17% of the global population and consumes 25% of the worlds groundwater each year. This unchecked consumption, along with widespread water contamination, is pushing millions toward severe water stress. By 2030, the demand for water is expected to surpass available supply by 100%, and without better management,

India could suffer a 6% reduction in GDP by 2050.

In response to the escalating water crisis, the Indian government has launched extensive measures. The establishment of the Jal Shakti Ministry demonstrates a focussed commitment to addressing the nations water woes. Initiatives such as AMRUT, PMKSY, and Namami Gange aim to conserve water, improve irrigation efficiency, and rejuvenate critical water bodies.

The Jal Jeevan Mission has transformed rural water access, providing over 14 crore families with Functional Household Tap

Connections (FHTC) and ensuring access to safe drinking water in even the most isolated regions.

These collective efforts are focussed on enhancing water security, encouraging sustainable practices, and protecting the nations future water resources. Surya Roshni, with its established capacity for manufacturing GI pipes and its strong presence in rural India, is in an ideal position to capitalise on the growing demand for water infrastructure. With government-led initiatives pushing for enhanced water security, the Company stands to benefit from this rapidly expanding market, propelling both growth and meaningful impact.

Infrastructure

Indias infrastructure landscape is evolving rapidly, driven by transformative government initiatives and significant investments focused on strengthening connectivity, boosting operational efficiency, and accelerating economic growth. Programs such as the PM Gati Shakti National Master Plan (NMP),

Bharatmala, Sagarmala, and UDAN are being integrated into a digital platform to optimise logistics and reduce transportation costs. The National Infrastructure Pipeline (NIP), with a planned investment of USD 1.4 trillion by 2025, aims to develop state- of-the-art infrastructure, supporting the countrys growth. The Union Budget for 2025-26 has allocated

Rs 11.21 lakh crore for infrastructure, accounting for approximately 3.1% of GDP. This fund will cover both capital expenditure and grants-in-aid for the creation and enhancement of critical infrastructure. The government is also focused on expanding the national highway network to 2 lakh kilometers and increasing the number of airports to 220 by 2025, aiming to enhance the efficiency of transportation networks across the country.

Indias transportation sector is witnessing remarkable progress.

In 2024-25, the country achieved a national highway construction rate of 34 km per day, the second-highest pace recorded in the past decade.

By the end of 2024, the National Highway network had expanded to 1,46,195 km, reflecting a 60% increase over the past ten years. The length of high-speed corridors also grew significantly?from 93 km in 2014 to over 2,474 km by the end of 2024. However, during the first nine months of 2024-25, highway construction temporarily slowed to 21.28 km per day due to factors such as the Model Code of Conduct during elections and ribbon development along highways. Looking ahead, the government plans to introduce barrier-free tolling systems and strengthen road safety measures to enhance transportation efficiency.

The railways sector is also witnessing rapid modernisation. The Union Budget for 2024-25 allocated a record Rs 2,62,200 crore towards the sectors modernisation, safety, and capacity enhancement. The Mumbai- Ahmedabad High-Speed Rail Project, with a revised budget of Rs 1.08 lakhs crore, achieved 47.17% physical completion by October 2024, while the Dedicated Freight Corridor (DFC) network made substantial progress, with 2,741 km of the 2,843 km planned network completed by November 2024, significantly boosting freight transportation efficiency.

Simultaneously, urban infrastructure is being revitalised through the Smart Cities Mission, which had achieved 91% project completion by December 2024, showcasing significant progress in transforming urban landscapes. By January 2025, 7,479 out of 8,058 tendered projects were successfully completed, utilising Rs 1,50,002 crore of the total Rs 1,64,368 crore allocated budget. With over 8,000 projects launched and an investment of Rs 1.6 lakhs crore by July 2024, 17 cities have already achieved 100% completion of their respective projects, significantly enhancing urban infrastructure and the quality of life.

Amidst this large-scale transformation, Surya Roshni is strategically positioned to capitalise on Indias infrastructure expansion, backed by its robust manufacturing capabilities and extensive market presence. With cutting-edge steel pipes and GI pipes that are widely used in infrastructure projects, the Company is well-equipped to meet the rising demand for durable and reliable piping solutions. As the government continues to prioritise infrastructure development, Surya Roshni is poised to leverage its industry expertise and expand its market footprint, contributing significantly to the nations transformative growth journey.

Oil & Gas

Indias oil and gas sector is poised for continued growth, driven by rising demand, expanding infrastructure, and strategic government initiatives. Petroleum product demand is projected to grow, reflecting the countrys increasing energy needs.

Simultaneously, liquefied natural gas (LNG) imports surged to a record 26 million metric tons per annum (MMTPA) in 2024, accounting for over half of the countrys total gas consumption. With LNG demand expected to exceed 37 MMTPA by 2030 and potentially reach 88 MMTPA by 2050, India is on track to become the third-largest LNG importer globally, following China and Japan. By 2032, LNG is anticipated to make up nearly two- thirds of Indias gas consumption, highlighting its growing significance in the energy landscape. Due to this, expanding pipeline connectivity is expected to drive further growth, with the Petroleum and Natural Gas Regulatory Board approving the construction of 10,800 km of gas pipelines. This expanded network, set for completion by 2025-26, will enhance gas accessibility in the southern and eastern regions, boosting domestic consumption.

To support the sectors expansion, the Indian government is introducing several strategic measures. These include potential relief in Goods and Services Tax (GST) on fuels, a Rs 35,000 crore LPG subsidy, and a reduction in Compressed Natural Gas (CNG) excise duty as part of the 2025 budget. Furthermore, the Oilfield (Regulation and Development) Amendment Bill, aimed at streamlining procedures and enhancing policy consistency, is expected to foster greater investment in oil and gas exploration and further boosting optimism in the industry. Aligned with its net-zero emissions goal by 2070, the government is also focused on increasing the share of natural gas in Indias energy mix. These initiatives underscore the governments commitment to strengthening the oil and gas sector while promoting sustainability and energy security, creating significant growth opportunities for industry players.

Surya Roshni offers a diverse range of products, including API, 3LPE- coated, and spiral pipes, catering to the evolving needs of the industry. Additionally, as we are established as a premium provider of high- quality solutions for the City Gas Distribution (CGD) sector, reinforcing its market leadership. The Company is witnessing a steady inflow of orders for API pipes and other value-added products, driven by robust demand from the oil and gas, CGD, and water transportation sectors. With its strong product portfolio and consistent order momentum, Surya Roshni is well-equipped to leverage emerging opportunities and strengthen its position in this growing market.

Automobile

The automobile industry is a key pillar of Indias economy, accounting for 7.1% of the countrys GDP and contributing 45% to Indias manufacturing sector. In 2024, the Indian automotive market was valued at USD 121.5 billion and is projected to nearly double, reaching USD 247.4 billion by 2033, with a CAGR of 7.13%. The sector also provides direct and indirect employment to over 37 million people. With the government aiming to increase the industrys GDP contribution to 12% by 2026, this growth is expected to create 65 million jobs and triple the turnover of the Indian car industry.

A key trend shaping the sector is the accelerated adoption of electric vehicles (EVs), as India aims for a zero-emission vehicle target by 2030. This shift is driving significant advancements in sustainable transportation. To support this transition, the government is strengthening EV infrastructure, focusing on expanding charging networks across the country. The Production Linked Incentive (PLI) scheme is further boosting domestic manufacturing, positioning India as a global leader in EV production.

The government is also promoting sustainability in the automotive sector through initiatives such as the PM- eBus Sewa Scheme and funding for renewable energy projects. These efforts aim to reduce greenhouse gas emissions and foster the adoption of cleaner technologies, thereby enhancing the overall automotive ecosystem.

With a production of around millions of vehicles across segments? including passenger vehicles, commercial vehicles, and two- wheelers?in FY 2024-25, India is on track to become the third-largest automobile market globally by 2026. This robust growth trajectory underscores the sectors pivotal role in shaping the countrys economic future.

Surya Roshni is well-positioned to cater to the evolving needs of the automotive sector. The Company offers a specialised range of CR sheets, tailored to meet the industrys specific requirements. With the rising popularity of electric vehicles (EVs), Surya Roshni is strategically poised to explore new growth opportunities by expanding its offerings in this rapidly growing segment.

Renewable Energy

Indias renewable energy sector is expanding rapidly, with total non-fossil fuel-based capacity reaching 217.62 GW as of January 2025. Solar power is a key driver, contributing 92.12 GW, while wind power accounts for 47.72 GW. In 2024 alone, India added 24.5 GW of solar capacity and 3.4 GW of wind capacity, further strengthening its renewable portfolio. The country is committed to ambitious targets, aiming for 500 GW of non-fossil fuel capacity by 2030 and achieving net-zero carbon emissions by 2070. To meet these goals, India must add approximately 56 GW of renewable capacity annually over the next five years.

The Indian government is actively supporting the sector through policy reforms, incentives, and financial investments. Key initiatives include tax rebates, subsidies, and the Green Energy Corridors (GECs) program, which facilitates the seamless transmission of solar and wind power. The Union Budget for 2025 prioritises energy security and transition, allocating significant funds for renewable infrastructure, electric vehicle adoption, and green hydrogen development. Notably, Rs 60 billion has been earmarked for Green Energy Corridors and Rs 6 billion for the National Green Hydrogen Mission, highlighting the governments commitment to advancing clean energy solutions.

The landscape is also witnessing the rise of innovative technologies to tackle key challenges. Energy storage solutions, particularly lithium-ion batteries, are becoming more cost- effective and efficient, mitigating intermittency issues associated with renewables. Additionally, the adoption of smart grids is accelerating, with advanced data analytics and AI enhancing energy production, distribution, and load management. These technological advancements are vital to ensuring the continued growth, stability, and reliability of Indias renewable energy sector.

Surya Roshni plays a vital role in supporting the solar panel industry by providing high-quality GI pipes that serve both structural and transportation needs. These durable and reliable pipes are essential for mounting solar panels and ensuring efficient infrastructure, making them integral to the expanding renewable energy market. With the sectors growing demand, Surya Roshni is well-positioned to capitalise on emerging opportunities in this space.

Growing Organised Players

A significant shift is underway in Indias steel market, with organised players gaining ground due to their superior quality control, larger production capacities, and ability to meet shifting market demands. The Covid-19 pandemic highlighted this trend, as organised companies showed strength in overcoming supply chain challenges, which boosted customer loyalty. With steel demand in India expected to rise by 8% in 2025, driven by infrastructure growth and sectoral expansion, this shift is empowering organised players with better pricing power and higher profit margins. As unorganised companies lose market share, Surya Roshni, known for its consistent high- quality products, is well-positioned to ride this wave, drawing greater investments for expansion and technological innovation.

Exports

Indias steel tube and pipe export industry is experiencing robust growth, fuelled by rising international demand and government-backed initiatives promoting domestic manufacturing. The global steel pipe market is projected to reach USD 278.32 billion by 2030, driven primarily by the oil and gas sectors increasing requirements. India is strategically expanding its presence in key export regions such as the Gulf, Europe, and the United States.

The Middle East is witnessing major infrastructure projects, while Europe and the U.S. are driven by growing energy needs. Surya Roshni, a leading player in the industry, has strengthened its global footprint by securing approvals to supply pipes in Canada and expanding its presence in Australia and New Zealand, particularly in the firefighting, construction, and fencing segments?positioning itself strongly in high-potential international markets.

The Indian governments push for domestic manufacturing through initiatives like Make in India and Atmanirbhar Bharat has further created a favourable environment for export growth. These initiatives aim to reduce import dependency, encourage local production, and enhance the overall manufacturing ecosystem, enabling companies like Surya Roshni to capitalise on emerging global opportunities.

B) Lighting & Consumer Durables

Lighting Global Overview

The global lighting market, estimated at around USD 136.89 billion in 2024, is set to increase to USD 252.65 billion by 2035, expanding at a CAGR of 5.72%. This growth trajectory is fueled by cutting-edge technological innovations, increasing consumer demand for energy-efficient lighting solutions, and favorable government regulations that promote sustainability.

One of the key catalysts behind this growth is the rapid adoption of LED lighting. The global LED market, estimated at USD 90.3 billion in 2024, is anticipated to nearly double, reaching USD 183.7 billion by 2033, at a CAGR of 8.2% from 2025 to 2033. The shift towards LEDs is driven by their exceptional energy savings, cost-efficiency, and longevity, which have made them the lighting choice of preference in both residential and commercial sectors. Increased environmental consciousness and stricter government regulations on emissions are also accelerating the transition to eco-friendly lighting solutions.

The construction industry is driving a substantial increase in demand for lighting solutions. As large- scale infrastructure projects and urbanisation efforts gain momentum, particularly in developing regions, the need for dependable and energy- efficient lighting continues to rise. Government-backed initiatives to promote construction are further fueling the growth of the lighting market.

Another key trend shaping the future of the lighting industry is the increasing demand for smart lighting solutions. These systems, featuring sensors and automated controls, optimise energy consumption by adjusting lighting levels based on available daylight and room occupancy. The global smart LED lighting market is set to reach USD 34.18 billion by 2025, indicating the rising preference for energy-efficient and intelligent lighting systems in both residential and commercial sectors.

Regional Market Insights

The Asia-Pacific region is expected to witness substantial growth, with the LED lighting market expanding from USD 19.26 billion in 2024 to USD 29.10 billion by 2030, at a CAGR of 7.12%, driven by rapid urbanisation and infrastructure development.

In North America, the market is projected to grow from USD 11.29 billion to USD 14.17 billion by 2030, at a CAGR of 3.85%, supported by the increasing adoption of energy- efficient solutions. Europe, with a strong focus on sustainability, is set to rise from USD 11.07 billion to USD 15.40 billion by 2030, reflecting a CAGR of 5.65%. Meanwhile, the Middle East and Africa are expected to experience steady growth, with the market increasing from USD 3.08 billion to USD 3.95 billion by 2030, at a CAGR of 4.21%, driven by infrastructure advancements and energy efficiency initiatives.

Indian Overview

The Indian LED lighting market, valued at about USD 5.0 billion in 2024, is expected to grow exponentially to USD 26.7 billion by 2033, with a CAGR of 19.35% from 2025 to 2033. This robust expansion is driven by the escalating demand for energy-efficient lighting, as businesses and homeowners increasingly replace traditional lighting with energy-saving LED technology. The key drivers of this transition include the need for reduced energy consumption, lower operational expenses, and the positive environmental impact LEDs bring, making them the go-to choice for both commercial and residential applications.

Key government programmes have been driving the widespread adoption of LED lighting across India. The UJALA scheme and the Street Lighting National Programme (SLNP) have been central to this shift, promoting energy-efficient solutions. These initiatives not only contribute to saving energy but also boost the market through mass deployment and cost-effectiveness.

The Smart Cities Mission and ongoing infrastructure projects are further boosting the demand for LED lighting in urban areas. Additionally, the expansion of the construction and real estate sectors is amplifying the need for energy-efficient lighting solutions in both new and existing developments.

Regionally, Northern India leads the market, followed by the Southern region, with both witnessing robust demand due to urbanisation, infrastructure development, and the increasing adoption of energy- efficient technologies.

Consumer Durables

Fan

The Indian ceiling fan market, projected to be worth 43.1 million units in 2024, is set for gradual growth to 52 million units by 2033, at a 2% CAGR from 2025 to 2033.

This steady growth is driven by rising housing upgrades in urban and rural locations, supported by government programs aimed at enhancing housing and fostering smart city infrastructure.

Energy-efficient ceiling fans are becoming increasingly popular, with star-rated models consuming as little as 30-35 watts, contributing to the markets growth. The increase in consumer interest is further fuelled by the growing demand for smart fans that offer innovative features such as integrated lighting, dust-reducing mechanisms, and antibacterial properties?making life easier and more functional for consumers.

As more disposable income flows into households, consumers are prioritising high-quality, visually appealing home appliances, making chic and feature-filled ceiling fans an increasingly popular choice among modern homeowners.

Domestic Appliances

The Indian home appliances market is on track to reach USD 33.63 billion by 2030, driven by higher disposable incomes, urban expansion, and improved living conditions. As people seek smarter, more efficient solutions for their homes, the demand for innovative appliances continues to rise.

This market growth is being further supported by government initiatives, such as the National Policy for Electronics and GST reforms, which are boosting domestic manufacturing and making appliances more affordable. These strategies are expanding production capacity and fostering innovation, making high-tech appliances increasingly accessible to consumers.

Amid the ongoing growth, the market is seeing a significant rise in demand for smart appliances, driven by a shift towards connected, high-tech solutions. The smart appliance segment is expected to clock in a CAGR of 8.27%, reaching ? 353.40 . billion by 2029. As consumers place greater emphasis on convenience and energy efficiency, smart devices featuring remote control, automation, and advanced energy management are gaining popularity.

At the same time, the trend of premiumisation is taking hold, with buyers increasingly seeking top-tier, innovative products packed with advanced features. This shift towards luxury products is being further propelled by the growing influence of online shopping platforms, which are becoming preferred channels for purchasing kitchen and home appliances. The ease of browsing, diverse selections, and competitive pricing available through e-commerce are driving rapid market expansion.

(Source: https://www.grandviewresearch. com/horizon/outlook/home-appliances- market/india)

PVC Pipes

In the midst of Indias rapid urbanisation and infrastructure expansion, the need for long-lasting and budget-friendly piping solutions is growing. PVC pipes have become a popular choice due to their corrosion resistance, lightweight structure, and simple installation that requires minimal maintenance. These qualities make PVC pipes ideal for urban and rural infrastructure projects alike, driving their widespread adoption in a variety of industries.

Indias PVC pipe market is experiencing strong growth, propelled by expanding infrastructure, increasing construction projects, and strategic government initiatives. According to Custom Market Insights (CMI), the market is set to reach USD 374.7 million in 2024 and is projected to grow to USD 1,237.8 million by 2033, with a CAGR of 14.2%. This growth is largely fuelled by the escalating demand for efficient water and sanitation systems, especially in rapidly developing urban areas.

A key driver behind this growth is the Indian governments emphasis on infrastructure development. Initiatives like the Smart Cities Mission and rural water supply projects are accelerating the adoption of PVC pipes nationwide. These programmes are designed to enhance water management and sanitation systems, positioning PVC pipes as essential components for modern infrastructure.

At the same time, the agricultural sector is significantly contributing to the rising demand for PVC pipes, especially in irrigation systems.

As farmers strive for better water management, PVC pipes are becoming essential in minimising water wastage and boosting crop productivity. Government initiatives, such as the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), are further driving the adoption of PVC pipes, encouraging sustainable irrigation practices in rural India.

As the construction sector continues its rapid expansion and urbanisation picks up pace, the demand for PVC pipes is experiencing significant growth. With cities sprawling, the need for PVC in plumbing, drainage, and electrical installations for both residential and commercial properties is on the rise. This ongoing urban boom is likely to fuel continued demand for PVC pipes in diverse infrastructure and construction applications moving forward.

Heater

Indias water heater market is booming, driven by technological progress, shifting consumer needs, and increasing emphasis on sustainability. In 2024, the market stands at around USD 308.18 million and is anticipated to expand further, reaching USD 468.98 million by 2030. The electric water heater segment is set to grow to USD 575 million by 2033, while the total market is expected to skyrocket to nearly USD 2.13 billion by 2034, reflecting strong and sustained growth.

Indias varied climate is a major catalyst for the growing demand for water heaters, with both residential and commercial sectors relying on them year-round. As urbanisation picks up pace and disposable incomes increase, more consumers are opting for advanced home appliances, driving an increase in the demand for energy-efficient water heaters.

The market is increasingly gravitating toward energy-efficient alternatives, like tankless and heat pump water heaters, which provide lower operating costs and a smaller environmental footprint.

As environmental awareness rises, consumers are making eco-conscious choices, fuelling the adoption of sustainable technologies.

Government-led initiatives are playing a key role in influencing the market, with policies that prioritise the use of high-quality materials and foster the growth of solar water heating systems. As regulations on energy efficiency become stricter, the demand for solar water heaters is expected to grow, providing consumers with an opportunity to decrease energy usage and reduce their carbon footprint.

Opportunities and Growth Drivers

The Urban Shift

With rapid urbanisation taking centre stage, Indias economic landscape is undergoing a significant transformation, driven largely by the increasing middle class and rising consumer demand. As rural populations flocks to urban areas, purchasing power increases, further propelling the demand for consumer durables like electronics and household appliances. This trend presents a wealth of opportunities for businesses to innovate, but calls for robust infrastructure development to cater to the growing urban population.

The Rise of Rural Development

Recent strides in rural electrification, particularly through initiatives like the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya), have significantly improved electricity access in rural India. With more households now powered up and able to use essential appliances, this development is expected to boost economic activity and fuel demand in the consumer durables sector.

Government Initiatives Empowering Change

The Indian governments initiatives, like the promotion of LED lighting for street illumination and national monuments, are designed to boost energy efficiency and aesthetic appeal. These efforts have led to an increase in demand for LED lighting solutions, opening new opportunities for companies to innovate and cater to both government projects and the residential market. Surya Roshni, a key industry player, has capitalised on this trend by expanding its professional lighting range with a customer-centric approach.

PLI Scheme

For the year 2025-26, the PLI scheme allocation has increased to Rs 19,500 crore, reflecting a 76% rise from the Rs 11,037 crore allocated last year. This increase is primarily directed towards electronics, semiconductors, green energy, textiles, and battery storage, while the automobile industry faces a reduction in funding.

Operational Review

Steel Pipes and Strips

The Steel Pipes & Strips division at Surya Roshni has firmly established itself as a market leader, catering to the growing demands of key sectors such as construction, infrastructure, oil & gas, water, and agriculture. The division manufactures a diverse range of steel pipe products, meeting the evolving needs of both domestic and international markets.

With state-of-the-art manufacturing facilities across Haryana, Gujarat, Madhya Pradesh, and Andhra Pradesh, Surya Roshni is well- positioned to scale production capacity and capitalise on emerging growth opportunities. To support this, the Company is increasing its capex from Rs 75 crore to Rs 125 crore at its Hindupur facility, aiming to boost production by 2,00,000 tons per annum. Additionally, a Rs 75 crore investment is being made at the Bhuj, Anjar facility to manufacture large diameter pipes, strengthening its product portfolio. Further enhancing its infrastructure, Surya Roshni set-up a new spiral plant in Gwalior in February, 205 and is expanding its cold rolling capacity at Bahadurgarh by H1FY26. With a total capex plan of Rs 500 crore over the next two years, the Company plans to increase its capacity from 12 lakhs tons to 19 lakhs tons, reinforcing its leadership position in the market.

The Companys products, marketed under the Prakash Surya brand, are exported to over 50 countries, with a strong foothold in the Gulf Cooperation Council (GCC) nations, reflecting its expanding global presence. In the domestic market, Surya Roshni maintains a robust B2C presence, particularly in Tier II cities and rural regions, where it benefits from a well-established dealer and distributor network. This extensive reach, combined with consistent quality and reliability, strengthens the divisions position as a preferred partner for large-scale infrastructure and industrial projects.

Performance Highlight

Particulars	2024-25	2023-24
Revenue (Rs crore)	5,749.07	6,241.78
EBITDA (Rs crore)	446.45	435.89
EBITDA per Ton (?)	5392	5401
Cash Profit (Rs crore)	429.87	414.02
PBT (Rs crore)	340.87	325.42

Transition towards Higher Margin

Volume Share (%)

Product	2020-21	2021-22	2022-23	2023-24	2024-25
API & Spiral	12	18	17	17	17
GI Pipes	35	33	26	28	26
Black Pipes	23	24	33	32	30
Section Pipes	19	13	13	12	15
CR Strips	11	12	11	11	12

EBITDA/MT (?)

Product	2020-21	2021-22	2022-23	2023-24	2024-25
API & Spiral	7,630	9,136	12,134	10,495	9,300
GI Pipes	4,602	5,456	7,737	6,467	6,465
Black Pipes	2,216	2,884	5,021	4,488	4,833
Section Pipes	1,843	1,611	3,415	1,872	2,645
CR Strips	1,693	2,627	2,846	1,156	2,311

Product Offerings

Electric Resistance Welding (ERW Steel Pipes)

Surya Roshnis ERW steel pipes find extensive across various sectors, including construction, scaffolding, casing, bore well tubing, and industries like agriculture, water transportation, firefighting, and irrigation. These pipes are also integral in the long-distance transportation of liquids like water, gas, oil, and chemicals, adhering to both national and international quality standards.

Key Strengths

o Leading producer of ERW GI pipes in India

o 60% market share in ERW pipe exports

o Strong presence in South India, and a top three player in North India o Serves hilly regions such as Jammu & Kashmir, Uttarakhand, and Himachal Pradesh o Manufactures value-added pipes like coated, alkyd, grooved, and heat-treated pipes

o Trusted by top industry players such as IOCL, BPCL, and MGL o Accredited by major PMC committees, including EIL and Mecon

o Exporting to 50+ countries across the globe including USA, Australia, Canada, Mexico, Middle East, Europe and Africa

Key Strategies

o Commissioning a large-diameter section pipe facility (up to 300x300 mm) in Gwalior

o Expanding market share in Egypt for small gas paint pipes

o Increasing exports of value-added products like grooved pipes and coated pipes

o Geographical expansion to tap new markets

API Pipes

Surya Roshni offers a versatile range of API pipes, with coatings such as 3LPE, 3LPP, and FBE that provide exceptional durability and resistance to rust. These pipes are mainly used in the transportation of petroleum, natural gas, city gas distribution, and water transmission.

Key Strengths

o Diverse API pipe range, including EN, BS, Australia, and Astra grades o Efficient use of offline capacities post-expansion for cost efficiencies o Accredited by major PMC bodies like EIL and Mecon

o ISO 9001, 14001, and 18001 certifications

o Market share of approximately 10% in oil & gas transmission o Increased opportunities in water transmission

o Procured a world-class 3LPE coating machinery from Selmers, Netherlands

o Installed 3LPE coating facilities of 27,50,000 sq. mtr. (external coating) o Strong Order Book in hand for API Pipes

Key Strategies

o Focus on value-added products for enhanced profitability o Water Transmission provides higher growth opportunities

Spiral Pipes

Surya Roshni manufactures spiral pipes, with diameters ranging from 18" to 104" and thicknesses up to 1" (25.4 mm). The pipes are coated for internal and external protection, serving industries like water, infrastructure, and oil & gas transportation.

Key Strategies

o Diverse product range to meet varied market demands o Efficient production and export capabilities

o Focus on Middle Eastern markets for larger-diameter API pipes

Cold Rolled Steel Strips (CR Strips)

Surya Roshni processes CR strips with a width of up to 720 mm and thicknesses ranging from 0.3 mm to 0.6 mm. These high-quality strips serve a broad range of applications, from automotive components and cycle rims to furniture, drums, barrels, and even umbrella ribs. Further, the Company is expanding its cold rolling capacity at Bahadurgarh which is to be operationalised and commenced production by H1FY26.

Key Strategies

o Consistent quality for a wide range of end-user segments o Sales across Delhi-NCR and North India

o Capitalising on small order sizes for year-round engagement

Outlook

The Companys growing steel export business strengthens its positive outlook, driven by significant orders on hand. Additionally, the anticipated increase in the contribution of value-added products is expected to enhance the divisions profitability. Overall, the division is well-positioned for sustained growth, supported by its strong market presence and emphasis on higher-value products.

Lighting & Consumer Durables

Lighting

Since making its debut in the lighting industry in 1984, Surya Roshni has grown into a market leader in both traditional and LED lighting. With advanced manufacturing units in Kashipur (Uttarakhand) and Malanpur (Madhya Pradesh), the Company is supported by its Surya Technology & Innovation Centre (STIC) in Noida, a hub for cutting-edge research and development. This consistent focus on innovation empowers Surya Roshni to deliver energy-efficient, high-performance lighting solutions that continuously evolve to meet customer demands.

With a diverse product portfolio,

Surya Roshni covers a wide spectrum of lighting needs, offering both traditional solutions like GLS bulbs and tube lights, as well as advanced LED products such as LED bulbs, tube lights, battens, down-lighters, and other luminaires. The Company is also making significant strides in smart lighting, offering intelligent LED products designed for professional sectors such as street lighting, infrastructure, and industrial, office, and retail applications. This transition into smart lighting underscores Surya Roshnis ongoing commitment to providing energy-efficient, innovative solutions for both home and business environments.

Transforming the Lighting Industry

o Sustained Growth: Consistent increases in sales volumes, revenue, and profitability.

o Product Portfolio Expansion:

A broadened product range, establishing a strong market presence in the organised sector. o Innovation: Launched new products in the past three years to meet evolving consumer and professional demands.

o Distributor and Retailer Loyalty:

Built strong relationships with distributors, dealers, and retailers, ensuring high levels of brand loyalty.

o Nationwide Reach: Developed a significant presence across India, especially in semi-urban and rural areas.

Performance Highlight

Particulars	2024-25	2023-24
Revenue (Rs crore)	1,690.25	1,571.94
EBITDA (Rs crore)	162.43	150.42
Cash Profit (Rs crore)	158.27	148.24
PBT (Rs crore)	124.54	119.57

o Brand Recognition: A well- established and trusted brand, both domestically and internationally.

o Energy Conservation:

Implemented initiatives to reduce energy consumption and promote sustainability.

Expanding Capabilities in Fagade Solutions

o Building a Strong Professional Lighting Team: Focusing on strengthening the expertise of the team dedicated to professional lighting solutions.

o Creating a Complete Ecosystem:

Partnering with vendors to provide comprehensive lighting solutions.

o Customised Products: Offering tailored lighting solutions designed specifically to meet the unique needs of clients.

Product & Solution Development

o Smart Lighting Solutions:

Introducing integrated smart lighting systems for advanced, energy-efficient, and flexible solutions.

o Expanding Product Offerings:

Providing specialised lighting products for infrastructure projects, monument lighting, airports, bridges, and more.

Strengthening Customer Relationships

o B2B Engagement: Actively participating in direct B2B projects, focusing on delivering high-quality, value-added lighting solutions and services.

o Commitment to Excellence:

Ensuring the delivery of superior lighting products that meet the highest standards of quality and performance.

Consumer Durables Fans

Surya Roshni entered the fan market in 2014 and reached the Rs 100-crore milestone faster than many competitors, marking an impressive start. The Companys fan offerings include everything from designer and BLDC fans to pedestal, table, and ceiling fans, along with exhaust fans for industrial and domestic use. Its premium smart fans are equipped with state-of-the-art features, such as anti-dust and anti- bacterial coatings, superior airflow, and energy efficiency, ensuring both comfort and sustainability.

Key Strengths o Strong Brand & Distribution Network: Leveraging a trusted brand and an extensive distribution network to ensure widespread availability.

o Pan-India Presence: Ensuring a strong presence across India for its fan products.

o Diverse Product Range: Offering a variety of fans to cater to different consumer needs.

o Premiumisation: Surya Roshni is strategically focusing on premium product categories to strengthen its presence in urban markets, where demand for high-quality, feature- rich appliances is on the rise.

Home Appliances

Since its entry into the home appliance market in 2015, Surya Roshni has focussed on providing exceptional value with an innovative and diverse product portfolio.

From water and room heaters to air coolers, steam irons, juicer-mixer- grinders, and induction cooktops, the Company offers a comprehensive range of products designed to meet the growing demands of modern households.

Key Strengths o Strong Brand & Distribution Network: Relying on a robust brand reputation and distribution network to reach a wide consumer base. o Wide Product Variety: Offering an extensive selection of products designed to meet diverse consumer needs.

o Ecosystem Development: Building a comprehensive ecosystem to cater to fast-growing consumer markets. o Market-Leading Quality:

Consistently delivering products with advanced features and high quality, setting the standard in the industry.

Key Developments in FY 2024-25

Lighting & Consumer Durables

o The lighting & consumer durables segment delivered a commendable performance throughout the year. This growth is particularly notable given the significant price erosion across the lighting industry.

o The professional lighting segment delivered about double-digit revenue growth in FY25 and street lighting volumes surging over 2.5 times. The segments order book remains robust at Rs 150 crore, signaling strong demand visibility for FY26.

o New affordable decorative products were launched, targeting aspirational consumers to enhance market penetration.

o Reaffirming its commitment to growth and innovation, the Company is investing Rs 25 crore in its Gwalior facility to establish a state-of-the-art House Wiring Cables (HWC) unit, strategically leveraging existing resources for maximum efficiency. The house wiring cables (HWC) market, driven by demand from 60% of our channel partners. The Company anticipates a 1% market share in this segment in its first year of operations.

o Investment under PLI scheme is as per plan and will benefit with in house manufacturing of components and reduces costs. We are eligible for 3rd year claim amount of Rs 4.50 crore.

Outlook

Surya Roshni Limited projects a good growth in its Lighting division for FY 2024-25, even as it navigates some price erosion challenges. The Company continues to launch new products in this segment, adapting to the ever-evolving needs of its customers. Additionally, Surya Roshni anticipates strong performance in the Consumer Durables segment, assuming the Indian economy continues on its current growth trajectory.

Business Growth Enablers

Manufacturing Facilities: Steel Tube and Pipe

Location	Products
Anjar	ERW and Spiral Pipes (GI, Black, Section) and API Pipes with 3LPE Coating
Hindupur	ERW (GI, Black and Section), along with GP Pipes
Malanpur	ERW (GI, Black and Section) Section Steel Pipes - DFT
Bahadurgarh	ERW Pipes (GI, Black, Section), API Pipes, CR Strips & Sheets

Surya Roshni persistently strengthens its manufacturing capabilities by equipping the facilities with advanced machinery, including slitting lines, pipe mills, galvanising units, finishing machines, and high-pressure hydro machines?all supported by efficient handling systems to optimise production.

To meet the rising demand for structural pipes across the infrastructure, construction, and industrial sectors, the Company is expanding its section pipe capacity through Direct Forming Technology (DFT), enhancing operational efficiency. Additionally, the Companys new spiral pipe plant in Gwalior in February, 2025 and the up-coming cold rolling expansion at Bahadurgarh facility is on track and to commence operations by H1FY26.

At Hindupur facility, we are increasing capital expenditure from Rs 75 crore to Rs 125 crore to scale up production by nearly 2,00,000 tons per annum.

This expansion will focus on large- diameter (8 to 20 inch) pipes, DFT mill pipes, and coated pipes?crucial for waterline and infrastructure projects. Meanwhile, an investment of approximately Rs 75 crore at Bhuj-Anjar facility will enable the production of large-diameter and DFT pipes, adding 60,000 tons of annual capacity and boosting the Companys export capabilities.

With steel prices at their lowest levels in nearly five years, the Company is operating in a stable cost environment with minimal risk of further declines. This position is favourable to expand its product portfolio, strengthen the Companys export business, and drive technology-led capacity enhancements?ensuring sustainable growth and profitability.

Key Drivers of Our Success

Strong Brand Presence: With its well-established labels, Prakash Surya for steel pipes & strips and Surya for lighting solutions, Surya Roshni has successfully built a solid brand reputation, gaining widespread recognition and customer trust in various markets.

Extensive Distribution Network:

The Companys products are readily accessible across India, due to its robust network of dealers and distributors. Backed by a decentralised network of branches and depots, we guarantee prompt and efficient delivery, ensuring that customer demands are met with precision.

Diverse Product Range & Global

Reach: With a broad spectrum of products spanning two primary sectors, Surya Roshni a broad presence both within India and in over 50 international markets. This diversification strengthens long- term sustainability while mitigating potential risks.

Dynamic Leadership Team: The Company is driven by a dynamic and diverse team of leaders, combining seasoned experience with fresh perspectives. United by a shared vision, they lead with transparency and strategically align the Companys efforts to achieve common goals.

Financial Performance Metrics

(Rs in crore)

	Standalone		Consolidated
Particulars	For the year ended 31st March		For the year ended 31st March
	2025	2024	2025	2024
Revenue from Operations	7,435.22	7,808.52	7,435.87	7,809.27
Other Income	31.48	13.78	29.68	13.89
Total Revenue	7,466.70	7,822.30	7,465.55	7,823.16
EBITDA	610.65	585.92	608.89	586.31
Finance costs	20.73	24.05	20.74	24.05
Cash Profit	589.92	561.87	588.15	562.26
Depreciation and amortisation expenses	122.74	117.27	122.74	117.27
Net Profit Before Tax	467.18	444.60	465.41	444.99
Tax Expenses	118.78	115.74	118.81	115.83
Net Profit After Tax	348.40	328.86	346.60	329.16
Other Comprehensive Income	(1.91)	(1.31)	(1.91)	(1.31)
Total Comprehensive Income	346.49	327.55	344.69	327.85
EPS (Basic in )*	16.03	15.24	15.95	15.26
EPS (Diluted in )*	16.01	15.11	15.93	15.13

*The Company has allotted the Bonus Shares of Rs 5/- each as on 2nd January, 2025. Therefore, effect of increase in number of shares is considered while calculating Basic EPS and Diluted EPS in above results and previous period figures are also restated for Basic EPS and Diluted EPS in accordance with Ind AS 33 Earnings per share

The Company maintained its leadership in the manufacturing of ERW GI Steel Pipes and continued to be one of largest Lighting manufacturing companies.

Key Financial Ratios

Ratio	Standalone		% Change	Consolidated		% Change
	2024-25	2023-24		2024-25	2023-24
Debtors Turnover (Days)$	45	34	32.35	45	34	32.35
Inventory Turnover (Days)$$	44	51	(13.73)	44	51	(13.73)
Interest Coverage Ratio&	29.46	24.36	20.94	29.37	24.37	20.52
Current Ratio*	3.37	3.06	10.13	3.37	3.06	10.13
Debt Equity Ratio**	-	-	-	-	-	-
Operating profit margin (%)#	7.79	7.33	6.28	7.79	7.33	6.28
Net Profit margin (%)	4.69	4.21	11.40	4.66	4.21	10.69
Return on Net Worth (%)@	15.06	16.34	(7.83)	14.97	16.34	(8.38)

$ Debtors (including unbilled revenue and non-current receivables)/(Revenue from operations/365)

$$ Inventory/(Revenue from operations/365)

& Interest (Finance cost)/EBIDTA

* Current Assets/Current Liabilities

** Debt (Working capital + Long Term Debts including Current maturity of long-term loans)/Equity

# Operating profit (excluding other income)/Revenue from operation

@ Profit for the year/Average Net Worth

There were significant changes in the below mentioned financial ratio. The detailed explanations are as follows: Debtor Turnover Days Ratio increased due to substantial increase in sales during the month of March, 2025

Risk Management

Surya Roshni implements a comprehensive risk management approach that includes: o Systematically identifying risks across operational, financial, regulatory, technological, and human resources categories o Thoroughly assessing risks based on impact severity and occurrence probability

o Clearly allocating risk management responsibilities

o Developing strategic mitigation plans designed to create value

o Continuously monitoring and reporting mechanisms

Strategic Risk Management Goals

o Identifying and Managing Material Risks: Addressing both current and potential risk exposures.

o Protecting Brand Value:

Implementing strategic control and operational policies to safeguard brand reputation.

o Establishing a Risk Management Framework: Ensuring a company- wide approach to risk management.

o Consistent Risk Assessment: Adopting best practices for risk evaluation across various functions.

o Promoting a Positive Risk Management Culture: Ensuring sustainable business growth with stability.

Surya Roshni has established a well-defined risk management framework to identify and address both internal and external risks, including financial, operational, sectoral, and sustainability challenges, with a special focus on ESG considerations. The Company employs comprehensive systems and processes to monitor and assess risks consistently.

As part of its broader risk management approach, Surya

Roshni places great emphasis on business continuity, anticipating and mitigating potential disruptions to operations. In compliance with regulatory requirements, the Company has established a Risk Management Committee responsible for creating a comprehensive policy aimed at building effective continuity measures.

The Risk Management Committee identifies potential risks, evaluates their impact, and implements effective controls, ensuring timely risk assessment and mitigation across financial, operational, and project domains. Formed in accordance with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements, 2015, this committee strengthens the Companys commitment to effective risk governance.

Risk Mitigation Framework

Below is a detailed overview of the key risks and the strategies we have in place to mitigate them:

Risk Type	Risk Definition	Risk Mitigation
Technology Risk	Risk of losing relevance due to the rapid pace of technological progress.	To maintain its technological edge, the Company invests in cutting-edge R&D, staying ahead of industry trends and developing new products that align with market demands.
Financial Risk	Fluctuations in interest rates have the potential to impact the Companys financial stability.	Through careful monitoring of interest rate changes, Surya Roshni adapts with smart financial instruments?utilising MCLR, alternative benchmarks, and pre-payment strategies to maintain cost efficiency.
Regulatory Risk	Non-compliance with strict legal and environmental regulations could damage the Companys reputation.	To guarantee compliance with all applicable regulations, the Company is supported by a team of experienced professionals and legal consultants.
Forex Fluctuation Risk	Exchange rate volatility can impact the profitability derived from international dealings.	To protect its financial stability, Surya Roshni has introduced a foreign exchange hedging policy, effectively mitigating the risks posed by currency fluctuations.
Human Resources Risk	A talent retention gap may lead to operational setbacks and disrupt the smooth functioning of industrial relations.	The Companys strategy centres on attracting and nurturing top talent, with consistent management evaluations to ensure ongoing leadership success.
Commodity Price Risk	Changing commodity prices may create challenges in cost management and influence the Companys profitability.	By utilising dynamic supply channels and a comprehensive risk framework, Surya Roshni effectively manages commodity price fluctuations, with a focus on value-added offerings to limit exposure.
Marketing & Competition	Tight market competition and suboptimal EBITDA margins in certain segments could impact growth.	The Company pursues an assertive growth approach, emphasising cost efficiency and the introduction of high- margin, value-added products to sustain profitability.
Operational & Credit Risk	A lag in debt recovery could negatively affect cash flow and hinder working capital flexibility.	Surya Roshni enacts strong credit policies and capitalises on channel financing to streamline payments and reduce credit risk.

Business Continuity Plan (BCP)

Surya Roshni has put in place a comprehensive Business Continuity Plan to effectively navigate operational disruptions. Through business impact analysis, the Company identifies potential risks and prioritises recovery strategies for key functions. The BCP is designed to ensure quick recovery, minimal downtime and sustained operational resilience.

Internal Control Systems

Surya Roshnis internal control framework is integral to maintaining a sound governance structure.

The internal audit department consistently assesses the efficiency and compliance of these systems. Key features include:

o Budget Control: Regular assessments of financial performance and expenditure. o Management Information Systems (MIS): Clear organisational guidelines and authority levels for business transactions.

o Internal Financial Controls:

Safeguarding assets, preventing fraud, and maintaining accurate accounting records. o External Audits: Comprehensive audits across branches and specialised areas like taxation to ensure audit and control effectiveness.

Corporate Social Responsibility

Surya Roshni is committed fulfilling its role as a responsible corporate citizen and recognises the importance of promoting social development.

The Company firmly believes that enhancing societal capacity is vital for achieving sustainable growth. Therefore, Surya Roshni focusses on societal well-being and ecological responsibilities as central pillars of its Corporate Social Responsibility (CSR) initiatives.

The Companys CSR policy, outlined in Annexure IV of the Boards Report, delineates its key objectives. Surya Roshni fulfils its CSR responsibilities through the Surya Foundation, engaging in various initiatives.

These initiatives include the Rural Development Programme (Adarsh Gram Yojana Project), healthcare promotion (including preventive healthcare), and other projects specified under Schedule VII of the Companies Act, 2013.

Surya Roshnis CSR activities are diverse and include programmes like Swachhata Abhiyan, Teachers Personality Development Camp (TPDC), TPDC - MP, and TPDC - Bhuj, among others. Through its dedicated CSR arm, the Surya Foundation, the Company prioritises health, skill development, and education. In the past year Surya Roshni spent Rs 7.96 crore on corporate social activities on a consolidated basis, amounting to not less than 2% of the average net profits over the preceding three financial years. Committed to fostering social development, the Company strives to create a positive impact on society, aiming to make a meaningful difference in peoples lives.

Human Resources and Industrial Relations

At the heart of Surya Roshnis success lies a committed and driven workforce that fosters a positive and performance-oriented work environment. The Company places strong emphasis on cultivating

a culture that prioritises both employees and customers while aligning with strategic objectives.

Its employee value proposition is built around growth-attracting, nurturing, and retaining top talent through continuous support and opportunities for advancement.

Surya Roshni motivates and recognises excellence through its Surya Parivar programme, a key part of its broader rewards and recognition framework. The Company has also fostered strong industrial relations by encouraging active worker engagement through a mix of formal and informal communication platforms, as well as dedicated training initiatives. As of 31st March, 2025, Surya Roshni employed 3,328 individuals on its direct payroll.

Cautionary Statement

This report contains forward- looking statements regarding Surya Roshnis business operations, financial performance, and growth prospects. Such statements are based on current expectations and beliefs but are subject to various risks and uncertainties, including changes in global commodity prices, technological advancements, and economic conditions. Actual results may differ significantly from those anticipated. The Company disclaims any obligation to update forward- looking statements and urges stakeholders to consider the risks and uncertainties inherent in these projections.