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Scoda Tubes to Add 8,000 MTPA Capacity with ₹400 Million Investment
Scoda Tubes Limited has announced a major capacity expansion of 8,000 MTPA for Welded Tubes & Pipes at its Mehsana facility. The project involves a capital expenditure of ₹400 million, which will be funded through a combination of internal accruals and bank term loans. This expansion is incremental to the growth plans previously disclosed in the company's May 2025 prospectus. Completion is expected by the end of Q3 FY 2026-27, aiming to significantly enhance the company's market presence and meet rising demand.
Key Highlights
Proposed capacity addition of 8,000 MTPA for Welded Tubes & Pipes.
Total investment of ₹400 million to be funded via internal accruals and term loans.
Project completion targeted by the end of Q3 FY 2026-27.
Expansion is in addition to existing plans disclosed in the May 2025 prospectus.
💼 Action for Investors
Investors should monitor the company's execution timeline and the impact of increased interest costs from new loans on future margins. The massive scale-up relative to current capacity suggests a high-growth trajectory if demand remains robust.
Scoda Tubes Q3 FY26: Revenue up 17% to ₹152.4 Cr, PAT grows 18% to ₹11.5 Cr
Scoda Tubes reported a 17.3% y-o-y growth in revenue for Q3 FY26, reaching ₹152.4 crores, driven by a strong 41% surge in export sales. While PAT increased by 17.8% to ₹11.5 crores, EBITDA margins saw a contraction from 17.8% to 15.1% due to lower gross margins. The company significantly strengthened its balance sheet, reducing its Net Debt/Equity ratio to 0.2x from 1.1x in the previous fiscal year, following its recent listing and fundraise.
Key Highlights
Revenue from operations grew 17.3% y-o-y to ₹152.4 crores in Q3 FY26.
Profit After Tax (PAT) increased by 17.8% y-o-y to ₹11.5 crores with a steady 7.5% margin.
Export revenue witnessed a robust 41% growth, now contributing 32% of total revenue compared to 26% last year.
Net Debt/Equity ratio improved drastically to 0.2x from 1.1x in FY25.
EBITDA margins compressed to 15.1% from 17.8% in the corresponding quarter last year.
💼 Action for Investors
Investors should monitor the sustainability of export growth and the company's ability to recover EBITDA margins. The significant reduction in debt provides a strong cushion for future capacity expansion and improves the overall risk profile.