Scoda Tubes Limited reported a 22.4% increase in net profit to ₹38.8 crore for FY26, alongside a 7% rise in revenue to ₹518.7 crore. The company also achieved a significant reduction in leverage, with net debt-to-equity improving from 1.1x to 0.3x.

The financial performance was presented during the 18th Annual General Meeting held on September 26, 2026, via video conferencing. Whole-Time Director Samarth Bharatbhai Patel, who chaired the meeting, highlighted the strong operational year, noting that export revenue grew by 39% to reach ₹179.5 crore. This robust top-line growth was supported by increased capacity utilization across its production lines.

Financial Performance Overview

The company’s focus on balancing growth with balance sheet strength was evident in the FY26 results. While revenue expanded moderately, profitability saw a sharper uptick, aided by improved operational efficiency and reduced financing costs due to lower debt levels.

Operational Highlights and Expansion Plans

Scoda Tubes currently operates 33 seamless and 2 welded production lines, with an installed capacity of 21,088 MTPA. The company serves 349 customers across 32 countries, reflecting its growing international footprint. Management plans to expand capacity to approximately 21,150 MTPA by FY28 and is exploring entry into new sectors, including data centers.

To support sustainability goals and reduce energy costs, the company is installing 8.79 MW of captive solar capacity. This initiative involves an investment of ₹31.7 crore and is expected to generate annual savings of approximately ₹8.7 crore. However, production faced temporary disruptions in March 2026 due to gas-related issues linked to geopolitical tensions in West Asia.

What the Numbers Show

The divergence between revenue growth (7%) and net profit growth (22.4%) suggests significant margin expansion or cost optimization during FY26. Simultaneously, the sharp decline in net debt-to-equity from 1.1x to 0.3x indicates aggressive deleveraging, which likely contributed to lower interest expenses and boosted bottom-line performance. The substantial jump in export revenue (+39%) highlights successful market diversification efforts.

AGM Proceedings and Compliance

During the meeting, shareholders approved several resolutions, including the adoption of audited financial statements for FY26 and the re-appointment of Samarth Bharatbhai Patel as Director. Special resolutions were passed to enhance borrowing limits under Section 180(1)(c) of the Companies Act, 2013, and to revise remuneration for key managerial personnel, including Managing Director Jagrutkumar Rameshbhai Patel.

The Secretarial Audit Report noted delays in filing certain e-forms with the Registrar of Companies, which were subsequently filed with additional fees. The Independent Statutory Auditor’s report contained no qualifications. Voting results will be declared within two working days and made available on the company’s website.

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.