Scoda Tubes Reports 5% Revenue Growth in H1FY26, Expands Capacity and European Footprint

Scoda Tubes Limited , a leading manufacturer of stainless steel pipes and tubes, has reported a 5% year-on-year increase in consolidated revenue for the first half of fiscal year 2026 (H1FY26). The company's net earnings saw a significant jump of 39% during the same period, showcasing robust financial performance amid capacity expansion and strategic acquisitions.

Financial Highlights

For H1FY26, Scoda Tubes achieved the following financial results:

Metric	H1FY26	YoY Change
Revenue	₹242.70 crores	+5%
EBITDA	₹36.50 crores	-
EBITDA Margin	15.10%	-110 bps
Net Profit	₹21.10 crores	+39%
Net Profit Margin	8.70%	+210 bps

The company's EBITDA margin stood at 15.10% compared to 16.20% in the previous year, while the net profit margin improved significantly from 6.60% to 8.70%.

Capacity Expansion and Operational Updates

Scoda Tubes has made significant strides in expanding its production capabilities:

Seamless tube capacity has increased from 10,000 to 17,000 metric tons per annum.
The company aims to reach 20,000 MT capacity by December with the installation of two additional pilger machines.
Production ramp-up is progressing as scheduled, with a target to achieve 60-65% blended utilization by FY26 and around 80% by FY27.
Construction for the welded tubes and pipes plant has commenced, with commercial production targeted for Q1 FY27.

Strategic Acquisition

In a move to strengthen its international presence, Scoda Tubes has acquired Arvind sp. z o.o., a Poland-based trading firm. This acquisition is expected to enhance the company's footprint in Eastern Europe and open up opportunities in high-growth sectors such as oil and gas, heat exchangers, and refineries.

Order Book and Market Outlook

The company reported a strong order book of ₹194.00 crores, with ₹104.00 crores from exports and ₹90.00 crores from the domestic market. Recent approvals from Reliance and Imperial Auto in the domestic market are expected to contribute to future growth.

Samarth Patel, Chairman and Executive Director of Scoda Tubes, stated, "We remain confident about the opportunities ahead as Scoda Tubes enters its next phase of growth. Our continued investments in capacity expansion, coupled with a sharp focus on operational efficiency and execution, position us well to deliver sustainable and profitable growth in the coming years."

Future Prospects

Scoda Tubes is targeting a 20% revenue growth as new capacity comes online. The management expects EBITDA margins to remain in the 15-16% range, driven by a balanced mix of seamless and welded products. The company aims to increase its export contribution to 40-45% of total revenue by FY28, leveraging its expanded capacity and strategic European acquisition.

With the ongoing expansion and strategic initiatives, Scoda Tubes appears well-positioned to capitalize on the growing demand for stainless steel pipes and tubes in both domestic and international markets.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.59%	-4.50%	+5.23%	+12.65%	+12.65%	+12.65%

Scoda Tubes Limited , a leading manufacturer of stainless steel tubes and pipes, has announced its financial results for the first half of fiscal year 2026 (H1FY26), showcasing robust growth in both revenue and profitability.

Financial Highlights

Revenue: The company reported a revenue of INR 242.70 crores in H1FY26, marking a 5% increase from INR 231.20 crores in the same period last year.
Profit After Tax: Net profit saw a significant jump of 39%, reaching INR 21.10 crores compared to INR 15.20 crores in H1FY25.
Gross Profit Margin: Scoda Tubes maintained a strong gross profit margin of 31.80%, slightly up from 31.30% in the previous year.
EBITDA: EBITDA slightly decreased by 3% to INR 36.50 crores.

Operational Performance

Scoda Tubes continues to strengthen its position in the stainless steel tubes and pipes sector. The company serves 349 clients globally across various industries, including oil & gas, chemicals, fertilizers, power, pharmaceuticals, automotive, and transportation.

Balance Sheet Strength

As of September 30, 2025, Scoda Tubes reported:

Metric	September 30, 2025	March 31, 2025
Total assets	7,084.54 crores	4,463.59 crores
Equity share capital and reserves	3,740.25 crores	1,503.85 crores

Cash Flow and Liquidity

The company's cash flow statement reveals:

Net cash flow used in operating activities: INR 510.30 crores
Net cash used in investment activities: INR 1,412.25 crores
Net cash inflow from financing activities: INR 1,851.27 crores, primarily from the issuance of shares through an IPO

Market Position and Future Outlook

Scoda Tubes Limited has completed its Initial Public Offer (IPO) during the half-year, raising INR 2,200.00 million by issuing 15,714,200 equity shares at an offer price of INR 140 per share. The company's shares are now listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

With its strong financial performance and recent capital raise, Scoda Tubes is well-positioned to capitalize on growth opportunities in the stainless steel tubes and pipes market. The company's focus on serving diverse industries and its expanding global client base suggest potential for continued growth in the coming quarters.