Surya Roshni cuts FY27 EBITDA view for third straight quarter
Consolidated target falls to ₹680-700 crore from ₹750 crore. Steel division EBITDA is now ₹470-480 crore, not ₹540-550 crore.
— 2 earlier stories on Surya Roshni Ltd. →What's new
- Surya Roshni cut FY27 consolidated EBITDA guidance to ₹680-700 crore, down from a ₹750 crore target set in February.
- The steel division's EBITDA target was cut to ₹470-480 crore from ₹540-550 crore.
- The large ONGC pipe contract was pushed to FY28, and a capacity expansion milestone deferred to FY29.
Why this matters
This is the third consecutive quarter where Surya Roshni has missed or cut its own guidance. The steel division, its largest business, is under clear margin pressure from rising input costs it can't pass on. Management's new line about 'promising less and delivering more' is an admission that previous forecasts were built on sand.
What we're watching
- Whether steel input costs stabilise or keep eating into margins in Q1.
- If the ONGC opportunity actually arrives in FY28 as now promised.
- Execution on the capacity expansion, now a FY29 event.
The full read
Surya Roshni keeps cutting. The new FY27 EBITDA target is ₹680-700 crore, down from the ₹750 crore set just three months ago. It's the third quarter in a row the company has walked back its own numbers. The steel division takes the bulk of the hit: its EBITDA is now ₹470-480 crore, not the ₹540-550 crore promised in February. The reason is a simple cost squeeze. Input prices for API and spiral-welded pipes rose, and Surya couldn't pass the full increase to buyers. Two big projects have also slipped. The ONGC pipe contract is pushed to FY28. A capacity expansion is now a FY29 event, blamed on longer lead times. Management's comment about learning to 'promise less and deliver more' is the tell. It's not a strategy; it's a confession. The cuts are getting smaller, which could mean the floor is near. But three quarters of misses in a row means the targets no longer anchor anything.
Questions answered
- By how much was the FY27 EBITDA guidance cut?
- The consolidated target fell to ₹680-700 crore from ₹750 crore. The steel division's contribution was cut by ₹60-70 crore, down to ₹470-480 crore from ₹540-550 crore.
- Why is the steel division's performance deteriorating?
- Higher input costs, particularly in API and spiral-welded pipes, have squeezed margins. Management conceded it couldn't pass on the full cost increase to customers.
- What is the status of the ONGC project?
- The large seamless-to-ERW pipe transition from state-owned ONGC has been delayed to FY28. This was a key part of the original growth thesis.
- Is this a one-off or a pattern?
- It's a pattern. This is the third straight quarter of missed internal targets, prompting management to adopt a more cautious forward stance.
Story so far
All notes on SURYAROSNI →- 25 May 2026 · 5:23 PM IST Surya Roshni cuts FY27 EBITDA view for third straight quarter
- 42d ago Surya Roshni's FY26 profit drops 18%. Dividend stays flat.
- 42d ago Surya Roshni profit falls 24% in Q4. Full-year earnings down 18%.