India’s solar energy sector is witnessing rapid growth, driven by the country’s ambitious renewable energy goals. As the world’s third-largest emitter of carbon dioxide, India is increasingly turning to solar power to reduce its carbon footprint and transition to cleaner energy. With abundant sunlight, favorable government policies, and significant investments in solar infrastructure, India has become a global leader in solar capacity installation.
The sector not only promises a cleaner future but also creates jobs, boosts economic growth, and reduces dependency on fossil fuels. India’s commitment to solar energy positions it as a key player in the global green energy transition. In this push, one company is gaining the most as its order book has gone up significantly.
Government Subsidies
Government policies are significantly supporting the solar sector through incentives like subsidies, tax benefits, and favorable regulations. Initiatives such as the Production-Linked Incentive (PLI) scheme, tax exemptions on solar equipment, and Renewable Purchase Obligations (RPO) are encouraging both domestic manufacturing and renewable energy adoption.
Additionally, the government is promoting solar projects through financial support, easing land acquisition, and facilitating grid integration. These policies create a favorable environment for solar companies, enhancing profitability and growth opportunities. As a result, solar firms can expand their operations, attract investments, and contribute more to India’s renewable energy targets.
Share Price
The shares of Surya Roshni Ltd. are currently trading at Rs. 257.6 up by 0.75% from its previous close of Rs. 255.75. The stock also touched an intraday high of Rs. 270.05 which translates to 5.5% from its previous close of 255.75 on January 10, 2025.
Recent Updates
Bharat Petroleum Corporation Ltd. (BPCL) has awarded a contract for the supply of API SL PSL2 LPE Coated Line Pipes, ranging from 4″ to 16″ in diameter, across PAN India. The total value of the contract is ₹81.47 crores, including GST, and the delivery is expected within 16 weeks. This order is a significant win, marking BPCL’s trust in the company for providing specialized line pipes needed for its operations.
The contract does not involve any interest from the promoter, promoter group, or group companies in the entity that awarded it. Furthermore, the order is not considered a related party transaction and is confirmed to be at “arm’s length.” This contract is a domestic transaction and highlights the company’s strong position in the supply of critical infrastructure components for the energy sector.
Financial Outlook
Surya Roshni Ltd. reported a significant decline in its financial performance for September 2024 compared to September 2023. Sales fell by ₹387 crore, from ₹1,916 crore in September 2023 to ₹1,529 crore in September 2024, representing a decrease of 20.2%. This drop in revenue also impacted EBITDA, which declined by ₹61 crore, from ₹137 crore to ₹76 crore, a decrease of 44.5%.
The operating profit margin (OPM) saw a contraction of 2 percentage points, dropping from 7% to 5%, which reflects a 28.6% decline. Additionally, net profit fell sharply by ₹40 crore, from ₹76 crore to ₹36 crore, a drop of 52.6%. These results highlight a challenging period for the company, with significant declines in both absolute numbers and percentage terms across all key financial metrics.
About the Company
Surya Roshni Limited, incorporated in 1973, has established itself as a prominent player in the Indian industrial sector. The company is India’s largest exporter of ERW (Electric Resistance Welded) pipes, the largest producer of GI (Galvanized Iron) pipes, and the second largest in the lighting segment. Surya Roshni focuses on expanding its value-added product offerings, including 3LPE-coated pipes and Alkyd pipes. It holds the leading position as the manufacturer of ERW GI pipes in India and commands a dominant 60% market share in the export of ERW pipes.
Regionally, Surya Roshni is a leader in South India and ranks among the top three in North India for GI pipes. The company is ranked number one in key states like Andhra Pradesh, Telangana, Madhya Pradesh, Chhattisgarh, Uttar Pradesh, and Jharkhand, and holds the second position in states such as Karnataka, Delhi, Maharashtra, Bihar, Rajasthan, and Uttarakhand.
Written By: Dipangshu Kundu
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