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.

Scoda Tubes Limited promoter Jagrutkumar Rameshbhai Patel declared that neither he nor his persons acting in concert have encumbered any equity shares of the company during the financial year 2025-26. The disclosure, submitted to the stock exchanges, assures stakeholders that no shares were pledged or otherwise encumbered directly or indirectly beyond prior disclosures. This compliance provides transparency regarding the holding status of the company's key shareholders.

The disclosure was filed under Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Addressed to the National Stock Exchange of India Limited and BSE Limited, the letter confirms that the promoter group maintained clear holdings throughout the specified period. The submission includes an annexure listing all entities on whose behalf the declaration was made.

Promoter and Promoter Group Details

The declaration encompasses a total of 42 entities categorized as either promoters or members of the promoter group. The list includes individuals and corporate entities associated with the promoters.

Additional Promoter Group Entities

The list further extends to include family members, Hindu Undivided Families (HUFs), and various corporate entities associated with the promoter group.