Performance Update

Q2 FY27 Financial Performance (YoY Comparison)

  • Revenue from operations: ₹148.9 crore (vs ₹145.3 crore in Q2 FY26), growth of 2.5%
  • Gross Profit: ₹49.8 crore (vs ₹48.8 crore in Q2 FY26), growth of 1.9%
  • Gross Profit Margin: 33.4% (vs 33.6% in Q2 FY26), decline of 21 basis points
  • EBITDA: ₹15.8 crore (vs ₹22.3 crore in Q2 FY26), decline of 29.3%
  • EBITDA Margin: 10.6% (vs 15.4% in Q2 FY26), decline of 478 basis points
  • Profit After Tax: ₹4.8 crore (vs ₹14.0 crore in Q2 FY26), decline of 65.7%
  • PAT Margin: 3.2% (vs 9.6% in Q2 FY26), decline of 640 basis points
  • EPS: ₹0.8 (vs ₹2.4 in Q2 FY26), decline of 67.1%

H1 FY27 Financial Performance (YoY Comparison)

  • Revenue from operations: ₹273.3 crore (vs ₹242.7 crore in H1 FY26), growth of 12.6%
  • Gross Profit: ₹89.6 crore (vs ₹77.3 crore in H1 FY26), growth of 15.9%
  • Gross Profit Margin: 32.8% (vs 31.8% in H1 FY26), improvement of 93 basis points
  • EBITDA: ₹31.8 crore (vs ₹36.5 crore in H1 FY26), decline of 13.0%
  • EBITDA Margin: 11.6% (vs 15.1% in H1 FY26), decline of 343 basis points
  • Profit After Tax: ₹10.0 crore (vs ₹21.1 crore in H1 FY26), decline of 52.3%
  • PAT Margin: 3.7% (vs 8.7% in H1 FY26), decline of 500 basis points
  • EPS: ₹1.7 (vs ₹3.9 in H1 FY26), decline of 56.6%

Management Commentary

Mr. Samarth B Patel, Chairman & Executive Director, commented on challenging operating environment marked by intensifying competition from private players and elevated power, fuel, and freight costs. The company remains focused on improving operational efficiencies, optimizing costs, and strengthening competitive position.

Financial Guidance

Management remains confident of achieving revenue growth of 20-25% for FY27, supported by healthy order pipeline, expanding manufacturing capabilities, and continued focus on execution. No specific margin guidance provided, but priority remains to protect current margins and progressively build upon them through improved efficiencies and operating leverage.

Company Overview

Business Profile

Scoda Tubes Limited is a fully integrated manufacturer of stainless steel seamless and welded products including SS seamless pipes, SS seamless tubes, SS seamless "U" tubes, SS instrumentation tubes, SS welded tubes and "U" tubes. The company supplies to multiple sectors including Oil & gas, chemicals, fertilizers, power, pharmaceuticals, automotive, and transportation.

Manufacturing Facilities

  • Manufacturing facility located in Gujarat on Ahmedabad-Mehsana highway
  • Plot size: 37,156+ sq. meters (with additional 74,699 sq. meters available for future expansion)
  • 360 kms from Mundra port and 23 kms from Inland Container Depot
  • Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018
  • International standards: ASTM, ASME, EN standards, PED 2014/68/EU, ADW/AD 2000 - Merkblatt – WO, DNV-CP-0252, DNV Marine, Indian Boiler Regulation

Production Capacity

  • Seamless production capacity: 20,068 MTPA (2 production lines)
  • Mother hollow capacity for seamless products: 20,000 MTPA
  • Welded production capacity: 1,020 MTPA (2 production lines)
  • Current total clients served globally: 349

Management Team

  • Samarth B Patel: Chairperson & Executive Director (10+ years experience, Bachelor of Science)
  • Jagrut R Patel: Managing Director (10+ years experience, Bachelor's degree in Computer Engineering)
  • Saurabh A Patel: Non-Executive Director (10+ years experience, Bachelor's degree in Commerce)
  • Ravi R Patel: Chief Financial Officer (10+ years experience, Bachelor's degree in IT Engineering)
  • Vipul A Patel: President (10+ years experience, Bachelor's degree in Computer Science Engineering)

Expansion Plans

Capacity Expansion

  • Seamless capacity expansion from 10,068 MTPA to 20,068 MTPA
  • Welded capacity expansion from 1,020 MTPA to 21,150 MTPA
  • Trial production at expanded welded facility expected to commence in Q4 FY27

Solar Power Capacity

  • Solar power capacity for seamless operations already operational
  • Ground mounted solar plant in Gujarat with capacity of 3.9 MW AC / 4.99 MW DC
  • Annual generation: 7.74 million kWh
  • Annual electricity cost savings: ₹4.87 crores
  • Dedicated solar capacity for expanded welded facility to be commissioned alongside production start

Financial History

Historical Performance (FY23-FY26)

  • Revenue From Operations: FY23 ₹305.1 crore, FY24 ₹399.9 crore, FY25 ₹484.9 crore, FY26 ₹518.7 crore
  • 3-year CAGR: 19.3%
  • Gross Profit: FY23 ₹92.5 crore, FY24 ₹137.9 crore, FY25 ₹148.5 crore, FY26 ₹165.4 crore
  • 3-year CAGR: 21.4%
  • PAT: FY23 ₹10.3 crore, FY24 ₹18.3 crore, FY25 ₹31.7 crore, FY26 ₹38.8 crore
  • 3-year CAGR: 55.4%
  • EPS: FY23 ₹2.6, FY24 ₹4.6, FY25 ₹7.6, FY26 ₹6.8

Balance Sheet Position (H1 FY27)

  • Total Assets: ₹792.6 crore
  • Fixed assets: ₹264.6 crore
  • Inventories: ₹227.1 crore
  • Trade receivables: ₹136.0 crore
  • Cash and bank balances: ₹49.5 crore
  • Equity capital and reserves: ₹400.5 crore
  • Borrowings: ₹229.2 crore
  • Trade payables: ₹153.2 crore

Cash Flow (H1 FY27)

  • Cashflow From Operations: ₹53.4 crore
  • Cashflow From Investing Activities: -₹87.2 crore
  • Cashflow From Financing Activities: ₹30.5 crore
  • Change in cash and cash equivalents: -₹3.3 crore
  • Cash and cash equivalents at period end: ₹0.7 crore

Quality Control and Testing

  • Dedicated quality control division with 14 personnel
  • Mandatory tests: PMI, Hydrostatic test, Tensile test, Mechanical test, Chemical test, Micro test, Hardness test
  • Supplementary tests: EDDY current test, Ultrasonic test, IGC practice "A", "C" & "E", Air under water test, Dye penetrant test, Impact test, Boroscopic examination