Scoda Tubes Limited has scheduled its 18th Annual General Meeting for Saturday, September 26, 2026. The board also approved auditor appointments for the financial year 2026-27 during a meeting on September 4.

The decisions were taken at the company’s registered office in Ahmedabad. The session commenced at 11:00 am and concluded at 11:30 am.

Auditor Appointments

The board appointed Mr. Manish B. Analkat as cost auditor and M/s. HVG & Associates as internal auditor for FY27.

Mr. Analkat is a Fellow Member of The Institute of Cost & Works Accountants of India (Membership No. MI19378). He brings over 26 years of experience in system analysis, cost accounting, and stock verification.

M/s. HVG & Associates, Chartered Accountant, Ahmedabad (FRN: 135242W), provides services in audit, assurance, direct tax, and secretarial practice.

Both appointments comply with Regulation 30 of SEBI Listing Regulations and the SEBI Master Circular dated January 30, 2026. Neither auditor has any disclosed relationship with the company’s directors.

AGM Logistics

The 18th AGM will be held on September 26, 2026, at 4:00 pm through Video Conference or Other Audio-Visual Means (OAVM). This complies with Ministry of Corporate Affairs and SEBI circulars.

National Securities Depository Limited (NSDL) was appointed as the Remote E-Voting Agency. M/s. PRASAD AND PARTNERS LLP (Formerly known as M/S. ALAP & CO. LLP), Practicing Company Secretaries, was appointed as the Scrutinizer for the e-voting process.

Members whose names are recorded in the Register of Members or in the Register of Beneficial Owners maintained by the Depositories as on the Cut-off date i.e. Saturday, September 19, 2026, shall be entitled to avail the facility of remote e-voting as well as e-voting system on the date of the AGM. There being no physical shareholders in the Company, the Register of members and share transfer books of the Company will not be closed.

The board approved the Draft Director’s Report for FY25-26 along with annexures to be included in the Annual Report. The final notice and annual report will be submitted to stock exchanges once dispatched to shareholders via email.

Scoda Tubes Limited reported a net profit of ₹52.5 million for the quarter ended June 30, 2026, marking a 26% decline from the ₹70.8 million earned in the corresponding period of FY26. While the company’s top line expanded significantly, profitability was constrained by higher operational and financial outflows, with EBITDA margin contracting to 12.82% from 14.58% year-on-year.

Revenue from operations grew 28% year-on-year to ₹1,243.5 million, up from ₹974.2 million in Q1FY26. This growth reflects increased activity in stainless-steel pipes and tubes manufacturing. However, the profit before tax (PBT) fell 25% to ₹70.0 million, down from ₹92.8 million in the prior year quarter. EBITDA stood at ₹159 million, up from ₹142 million in Q1FY26.

Financial Performance Highlights

The company’s total income rose 27% to ₹1,259.8 million, supported by operating revenue growth. Other income, however, contracted to ₹16.3 million from ₹17.6 million in the previous year quarter.

Operational Headwinds and Cost Pressures

Chairman & Executive Director Samarth B Patel attributed the margin contraction to temporary operational and external challenges. Global supply chain disruptions led to increased freight costs and volatility in raw material prices. The company’s advance order booking cycle of three to four months limited its ability to immediately pass on higher input costs to customers.

Operational efficiency was further impacted by a temporary gas supply disruption at the manufacturing facility during April, affecting production for a couple of weeks. Manpower availability challenges also weighed on performance during the quarter. Management noted that these headwinds were largely transient, with gas supply restored and supply chains normalizing.

What the Numbers Show

A key divergence in the results is the widening gap between revenue growth and expense inflation. While revenue grew nearly 28%, total expenses surged by 32%. Specifically, finance costs rose 27% to ₹64.8 million from ₹51.0 million, and other expenses jumped 81% to ₹213.5 million from ₹118.1 million. This disproportionate rise in non-operating and other costs eroded the benefit of higher sales volumes, leading to a contraction in net margins despite strong top-line performance.

Cost of raw materials consumed stood at ₹1,001.7 million, compared to ₹742.5 million in Q1FY26, tracking closely with revenue growth. Employee benefits remained stable at ₹24.6 million. Depreciation and amortization expenses increased sharply to ₹41.3 million from ₹15.7 million, indicating potential capital expenditure additions or changes in asset base valuation.

Capacity Expansion and Outlook

The company remains committed to achieving its FY27 guidance as operations stabilize. Production is ramping up at its seamless facility, and capacity expansion in the welded segment is progressing as planned. This expansion is expected to be commissioned during H2 FY27, strengthening manufacturing capabilities. Scoda Tubes operates solely in the manufacturing of stainless-steel pipes and tubes, with no subsidiaries or joint ventures as of June 30, 2026.

The Board of Directors approved the unaudited financial results on August 12, 2026. The results were reviewed by Dhirubhai Shah & Co LLP, the statutory auditors, who expressed an unmodified conclusion.