SURAJLTD - Suraj
📢 Recent Corporate Announcements
Suraj Limited has appointed M/s. Trivedi Parikh & Shah, Chartered Accountants, as the company's Internal Auditor for the financial year 2025-26. This appointment, effective February 11, 2026, fills a casual vacancy created by the unfortunate demise of the previous auditor, Mr. Sandip S. Gandhi. The new firm is an Ahmedabad-based practice with specialized expertise in auditing, taxation, and risk management. The board meeting to finalize this appointment was conducted efficiently within a 30-minute window.
- Appointment of M/s. Trivedi Parikh & Shah (FRN: 131671W) as Internal Auditor effective Feb 11, 2026.
- The appointment is for the duration of the financial year 2025-26.
- The change was necessitated by a casual vacancy following the death of Mr. Sandip S. Gandhi.
- The board meeting for approval commenced at 2:00 PM and concluded at 2:30 PM on February 11, 2026.
Suraj Limited has appointed M/s. Trivedi Parikh & Shah, Chartered Accountants, as the company's Internal Auditor for the financial year 2025-26. This appointment was approved during the board meeting held on February 11, 2026, to fill the casual vacancy created by the demise of the previous auditor, Mr. Sandip S. Gandhi. The new auditing firm is based in Ahmedabad and possesses expertise in statutory audits, taxation, and management consultancy. This is a standard regulatory compliance move to ensure the continuity of internal audit functions.
- Appointment of M/s. Trivedi Parikh & Shah (FRN: 131671W) as Internal Auditor for FY 2025-26.
- The vacancy was caused by the unfortunate demise of the previous auditor, Mr. Sandip S. Gandhi.
- The board meeting was held on February 11, 2026, and concluded within 30 minutes.
- The new auditor specializes in GST, statutory audits, and financial advisory services.
Suraj Limited has informed the stock exchanges regarding the unfortunate demise of its Internal Auditor, Mr. Sandip S. Gandhi, on January 22, 2026. The company was officially notified of the event on January 24, 2026. Mr. Gandhi was associated with M/s S. S. Gandhi & Associates (Firm Registration No. 0118926W). The company is now in the process of appointing a successor to maintain its internal audit and governance standards.
- Cessation of Internal Auditor Mr. Sandip S. Gandhi effective January 22, 2026
- The auditor represented M/s S. S. Gandhi & Associates (FRN: 0118926W)
- The company was formally informed of the demise on January 24, 2026
- Management will appoint a new Internal Auditor in due course as per SEBI regulations
Suraj Limited has declared an interim dividend following its board meeting held on January 16, 2026. The company has fixed Friday, January 23, 2026, as the record date to identify eligible shareholders for the payout. This announcement was made alongside the approval of the company's unaudited financial results for the quarter and nine months ended December 31, 2025. Shareholders must hold the stock in their demat accounts by the record date to receive the dividend.
- Record date for interim dividend fixed as January 23, 2026
- Dividend declared during the board meeting held on January 16, 2026
- Announcement coincides with the approval of Q3 and 9M FY2025-26 financial results
- Payment to be made to shareholders registered with NSDL and CDSL as of the record date
Suraj Limited has declared an interim dividend of ₹1.50 per equity share (15% of face value) for FY 2025-26, with the record date set for January 23, 2026. Despite the dividend, the company's Q3 FY26 financial results show significant weakness, with standalone Net Profit (PAT) falling sharply to ₹136.26 Lakhs from ₹684.07 Lakhs in the same quarter last year. Revenue from operations also saw a marginal decline to ₹6,188.42 Lakhs compared to ₹6,361.14 Lakhs YoY. The nine-month performance for FY26 reflects a substantial decline in profitability compared to the previous year.
- Declared an interim dividend of ₹1.50 per equity share with a record date of January 23, 2026.
- Standalone Net Profit (PAT) for Q3 FY26 plummeted by 80% YoY to ₹136.26 Lakhs.
- Revenue from operations decreased to ₹6,188.42 Lakhs from ₹6,361.14 Lakhs in the year-ago quarter.
- Basic and Diluted EPS for the quarter fell to ₹0.74 from ₹3.73 YoY.
- Nine-month PAT for FY26 stands at ₹346.04 Lakhs, down from ₹1,558.48 Lakhs in the same period last year.
Suraj Limited has declared an interim dividend of Rs. 1.5 per share (15%) for FY 2025-26, with the record date fixed for January 23, 2026. The company reported a sharp 80% year-on-year decline in standalone net profit for Q3 FY26, falling to Rs. 1.36 crore from Rs. 6.84 crore. Revenue also decreased slightly to Rs. 61.88 crore compared to Rs. 63.61 crore in the same period last year. The nine-month performance shows a significant profit contraction, highlighting potential operational or margin challenges.
- Interim dividend of Rs. 1.50 per share (15% of face value) declared with record date Jan 23, 2026
- Q3 FY26 Standalone PAT crashed 80% YoY to Rs. 136.26 Lakhs from Rs. 684.07 Lakhs
- Total Income for 9M FY26 fell to Rs. 16,565.50 Lakhs from Rs. 17,756.22 Lakhs in 9M FY25
- Standalone EPS for the quarter stands at Rs. 0.74, a sharp decline from Rs. 3.73 in Q3 FY25
- Finance costs for 9M FY26 increased to Rs. 317.48 Lakhs from Rs. 270.56 Lakhs YoY
Suraj Limited reported a sharp decline in profitability for the quarter ended December 31, 2025, with Net Profit (PAT) falling 80% year-on-year to ₹1.36 crore. Revenue from operations also saw a marginal decline of 2.7% YoY to ₹61.88 crore, although it showed sequential improvement from the previous quarter. Despite the earnings pressure, the company has declared an interim dividend of ₹1.50 per share. The record date for the dividend payment is fixed as January 23, 2026.
- Net Profit (PAT) for Q3 FY26 fell to ₹136.26 lakhs from ₹684.07 lakhs in Q3 FY25.
- Revenue from operations stood at ₹6,188.42 lakhs compared to ₹6,361.14 lakhs in the same period last year.
- Declared an interim dividend of ₹1.50 per equity share (15% of face value) for FY 2025-26.
- Nine-month PAT for FY26 dropped significantly to ₹326.04 lakhs from ₹1,558.48 lakhs YoY.
- Basic and Diluted EPS for the quarter decreased to ₹0.74 from ₹3.73 in the previous year's corresponding quarter.
Suraj Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by MCS Share Transfer Agent LTD, confirms that all dematerialization requests for the quarter ended December 31, 2025, were processed correctly. It verifies that physical security certificates were mutilated and cancelled after verification. The company has ensured that the names of depositories were substituted in the register of members within the mandated 15-day period.
- Compliance certificate submitted for the quarter ended December 31, 2025
- Confirmation of dematerialization requests processed by Registrar and Share Transfer Agent (RTA)
- Verification that security certificates were mutilated and cancelled within 15 days
- Confirmation that dematerialized securities are listed on the relevant stock exchanges
Suraj Limited has officially notified the exchanges regarding the closure of its trading window for all designated persons and their relatives starting January 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the Q3 financial results. The window will remain closed until 48 hours after the declaration of the standalone and consolidated unaudited financial results for the quarter ending December 31, 2025. This is a standard regulatory procedure followed by listed companies to prevent insider trading before earnings announcements.
- Trading window closure effective from January 1, 2026.
- Closure pertains to the financial results for the quarter ending December 31, 2025.
- Restriction applies to Promoters, Directors, and Designated Persons of the company.
- Window to reopen 48 hours after the official announcement of Q3 results.
- Board meeting date for result declaration to be announced separately.
Financial Performance
Revenue Growth by Segment
The company operates in a single reportable segment: manufacturing Stainless and various Steel, Seamless Pipes, Tubes, flanges & fittings. Standalone revenue for FY 2024-25 was INR 233.74 Cr. For the half-year ended September 30, 2025, revenue was INR 100.53 Cr, representing a 9.74% YoY decline from INR 111.39 Cr in the previous year's corresponding period.
Geographic Revenue Split
Exports contributed 75% of total revenue in fiscal 2022, increasing from 68% in fiscal 2021, highlighting a strong reliance on international markets for growth.
Profitability Margins
Operating profit margin declined to 7% in FY 2024-25 from 9% in FY 2023-24. Net profit margin also saw a slight compression from 6% to 5% in the same period due to increased interest expenses and lower income.
EBITDA Margin
Operating margin was 5.01% in fiscal 2022, down from 9.14% in fiscal 2021. This 45% YoY decline was driven by the inability to pass on rising raw material and transportation costs to customers with fixed-price contracts.
Capital Expenditure
The company reported a purchase of tangible and intangible assets amounting to INR 3.74 Cr as per recent cash flow statements to support manufacturing capabilities.
Credit Rating & Borrowing
The company maintains a 'Stable' outlook from CRISIL. Interest coverage ratio deteriorated to 3.58x in FY 2024-25 from 8.14x in FY 2023-24 due to higher finance costs. Borrowing costs are impacted by high working capital intensity.
Operational Drivers
Raw Materials
Stainless steel and various steel alloys are the primary raw materials. Cost of materials consumed was INR 63.42 Cr for H1 FY 2025-26, representing 63.08% of total revenue.
Raw Material Costs
Raw material costs represent approximately 63% of revenue. In fiscal 2022, margins were squeezed because the company could not fully pass on a spike in raw material prices to customers due to fixed-order pricing.
Manufacturing Efficiency
Return on Capital Employed (RoCE) was modest at 7.47% in fiscal 2022, constrained by high working capital intensity and moderate operating margins.
Logistics & Distribution
Transportation costs are a significant factor; an increase in these costs contributed to the margin decline from 9.14% to 5.01% in fiscal 2022.
Strategic Growth
Growth Strategy
Growth is pursued through leveraging the promoters' 30+ years of industry experience and established relationships with domestic and international clients. The company focuses on the high-demand export market (75% of revenue) and maintains a healthy capital structure to support moderate expansion.
Products & Services
Stainless steel and various steel seamless pipes, tubes, flanges, and fittings.
Brand Portfolio
Suraj
Market Expansion
The company has successfully expanded its export footprint, which now accounts for 75% of its revenue, targeting global demand for stainless steel seamless products.
Strategic Alliances
The company has an associate entity, Suraj Enterprise Private Limited.
External Factors
Industry Trends
The stainless-steel industry is growing but faces intense competition and high price sensitivity. There is an increasing shift toward stringent environmental and carbon emission compliance in production processes.
Competitive Landscape
The industry is characterized by intense competition from both domestic and international players, leading to thin margins and high sensitivity to input cost changes.
Competitive Moat
The moat is based on the promoters' extensive 30-year experience and established global client relationships. However, this moat is vulnerable to low product differentiation and the company's status as a price taker.
Macro Economic Sensitivity
Highly sensitive to global steel prices and international trade dynamics, given that 75% of revenue is derived from exports.
Consumer Behavior
Demand is driven by industrial requirements for seamless pipes and tubes in sectors like oil and gas, chemicals, and infrastructure.
Geopolitical Risks
Exposure to trade barriers and changing global standards for steel products could impact export volumes to key international markets.
Regulatory & Governance
Industry Regulations
Operations must comply with Indian Accounting Standards (Ind AS), SEBI Listing Obligations, and specific manufacturing standards for steel pipes and fittings.
Environmental Compliance
The company is subject to increasingly stringent domestic and global environmental standards and carbon emission regulations.
Taxation Policy Impact
The effective tax expense for H1 FY 2025-26 was INR 1.27 Cr on a standalone profit before tax of INR 3.37 Cr, representing an effective tax rate of approximately 37.6%.
Risk Analysis
Key Uncertainties
Volatility in raw material prices and transportation costs poses a significant risk to profitability, with the potential to reduce operating margins by several hundred basis points.
Geographic Concentration Risk
High geographic concentration risk with 75% of revenue coming from export markets, making the company vulnerable to global economic downturns and trade policy changes.
Technology Obsolescence Risk
The company faces the need to invest in sustainable and modern manufacturing technologies to remain competitive and compliant with global standards.
Credit & Counterparty Risk
Trade receivables stood at INR 25.42 Cr as of September 30, 2025. Moderate credit is extended to customers, and the company maintains an Expected Credit Loss (ECL) provision.