SCODATUBES Q4 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹518.7 Cr
verification pending
Revenue YoY
7%
reported change
EBITDA
₹76.2 Cr
latest reported figure
Source
manual review required
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Scoda Tubes delivered FY26 revenue of ₹518.7 crores (7% YoY growth), with Q4 impacted by a 15-17 day gas supply disruption that reduced production by ~40% and cost approximately ₹16-17 crores in lost revenue. EBITDA declined 140bps YoY to 14.7% due to under-absorption of fixed costs from new capacity ramping and elevated gas prices (+25%), though prices are being passed through to customers. PAT grew 22% YoY to ₹38.8 crores on operating leverage. The company completed seamless capacity expansion to 20,000 MTPA and raised ₹220 crores via IPO. For FY27, management targets 25% revenue growth to ~₹650 crores and 14-15% EBITDA margins, supported by the new welded facility (8,000 MTPA) coming online in Q2 with trial runs, and an order book of ₹175 crores for 3-4 months execution. Key risks include geopolitical-driven raw material inflation, delayed BPCL/NTPC tenders (now expected July-August), and elevated working capital (217 inventory days vs. 160-170 target). The acquisition strategy was abandoned due to regulatory hurdles and diminished EU quota benefits, signaling strategic recalibration.
Colored figures show movement against the previous available record.
Guidance to track
- Management targets 25% revenue growth in FY27, implying ~₹650 crores, driven by seamless capacity ramp-up and initial welded plant contributions, with 40% export and 60% domestic revenue mix.
- EBITDA margins are expected to recover to 14-15% range in FY27 as new capacities achieve better utilization and solar power project (₹8.63 Cr annual savings) reduces energy costs.
- Equipment delivery expected by July-August with trial runs targeted to begin by end of Q2 FY27; optimal utilization for welded segment expected by FY29.
- Seamless capacity expected to reach 70% utilization in FY27 with optimal levels by FY28; welded capacity to operate at ~25% utilization in first year of operations.
Risks flagged
- PNG gas supply from Qatar was disrupted for 15-17 days in March due to geopolitical situation (war), causing 40% production impact and ~₹16-17 crores revenue loss. Gas prices remain elevated (+25%) with partial pass-through lag.
- Stainless steel round bar prices increased 25-30% due to geopolitical factors affecting scrap imports. Pass-through to customers is contractually built in but creates revenue timing mismatches.
- Power sector tender participation expected to be delayed from November-December to July-August, creating visibility gap for large order wins that could significantly boost domestic revenue growth.
- Inventory days at 217 vs. 160-170 target; finance costs increased due to higher working capital utilization and delayed receivables from supply chain disruptions affecting payment cycles.
Key quotes
- The disruption was basically all because of the war situation. So we use PNG gas. And PNG gas usually comes from Qatar for India. In the absence of gas supply disruption, revenue could have been approximately ₹140 crores for the quarter.
- We are only into stainless steel. We are not into alloy pipes and tubes. And regarding the growth for the future for the new capacities which we have installed, I think the prices are bit volatile right now. Yes. Because of the geopolitical situations, the prices for base material in stainless steel has increased by 25 to 30%. But as we mentioned, these prices will be carried forward to the customer.
- Investment was withdrawn primarily due to operational and cross-border remittance challenges from India. The EU quota being reduced by 50% and safeguard duties increased from 20-25% to 50% made the benefit of setting up a company there diminished.
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