Steel stock jumps 3% after receiving order worth ₹168 Cr for supply of MS pipes

Synopsis: This small-cap steel pipe stock was in the news following the Rs 168.71 crore order it bagged from an undisclosed entity for the supply of submerged arc welded (SAW) mild steel pipes. This highlights the company’s presence in the pipe segment. Let us see in detail about the order. 

The shares of this company, which has emerged as India’s largest ERW pipes exporter, the largest GI pipes producer, and the second largest in the lighting segment and has a focus on developing the value-added product mix (3LPE-coated pipes, alkyd pipes, etc.), were in the spotlight after the company announced its bagging of this order. 

With the market cap of Rs 5,582 crore, the shares of Surya Roshni Ltd had hit their intraday high at Rs 258.50, rising by about 3 per cent compared to their previous day’s closing price of Rs 251.95. The shares are trading at a PE of 17, whereas its industry PE is at 21, and have given a return of 214% in the last 5 years. 

About the order

Surya Roshni has received an important new order worth Rs 168.71 crore, according to its exchange filing dated December 10. While the customer’s name hasn’t been disclosed, the order relates to the company’s core steel pipes business, specifically the supply of submerged arc welded (SAW) mild steel pipes, by highlighting steady demand in this segment.

The order is a domestic contract and will be executed within Gujarat, with the company expected to complete deliveries by June 2026. Surya Roshni also confirmed that neither the promoters nor the promoter group has any interest in the awarding entity, making it a fully non-related party transaction.

This contract further strengthens Surya Roshni’s order pipeline and reinforces its position as a trusted supplier for large-scale infrastructure and industrial requirements. With execution spread across the next six months, the project brings solid near-term revenue visibility and supports higher utilisation for the company’s steel pipe manufacturing operations.

Financials and more

The revenue from operations for the company stands at Rs 1,845 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 1,529 crores, growing by about 21 per cent YoY. Similarly, the net profit stood at Rs 74 crore in Q2 FY26, up from Rs 36 crore in Q2 FY25, giving a growth of about 105 per cent. 

The company has an order book of Rs 875 crore in steel pipes, lighting and consumer durable segments, along with Rs 750 crore in hand for the oil and gas sector, the water sector and export business. 

Surya Roshni, founded in 1973 as a manufacturer of steel tubes, has grown dramatically over the decades to become one of India’s largest names in both steel pipes and lighting solutions. With exports reaching more than 50 countries, the company has established itself as a major Indian conglomerate with a strong global footprint. Its flagship brands, Surya and Prakash Surya, are known for their focus on quality, innovation, and advanced technology, reinforcing the company’s reputation as a reliable leader in the steel pipes and lighting industries.

Written by Leon Mendonca. 

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