What’s new

• Management guided for 25% revenue growth and 14-15% EBITDA margins in FY27.
• Capex of ₹100 cr planned, including an 8,000-tonne welded pipe line for data centre and HVAC markets.
• Awaiting final approval from Rina Marine for Italian marine sector access, expected within weeks.

Why it matters

The guidance is aggressive for a company with just three to four months of order visibility. The ₹100 crore capex commitment is a significant bet on new markets, particularly if the Rina Marine approval arrives. The margin guidance suggests stable costs, but the new capacity must be filled to hit the 70% utilisation target.

What we’re watching

• Timing and outcome of the Rina Marine approval.
• Order inflow to fill the new welded capacity in FY27.
• Actual margin performance against the 14-15% EBITDA guidance.

The full read

Scoda Tubes is targeting 25% revenue growth in FY27 with EBITDA margins of 14-15%. The pipe maker is backing that guidance with ₹100 crore in capital expenditure, headlined by a new 8,000-tonne welded plant aimed at data centre and HVAC clients. An order book of ₹175 crore provides only three to four months of cover, making the 70% utilisation target for existing capacity and the ramp-up of the new line key tests. Management is also awaiting final certification from Italy's Rina Marine for the marine sector, which it expects within weeks. The guidance was laid out in a Q4 FY26 call transcript that restates information from an earlier summary, adding little new detail beyond the strategic roadmap.

Primary source: BSE · NSE

What’s new

• FY26 revenue reached ₹5,186 million, a 7% increase.
• Net profit climbed 22% to ₹388 million.
• A change in depreciation method lowered expenses by ₹156.68 million.

Why it matters

The profit growth is flattered by a change in accounting estimates rather than purely operational gains. Investors should strip out the ₹156.68 million depreciation benefit to see the underlying earnings trend.

What we’re watching

• Whether the new depreciation method aligns with industry standards.
• Operational margin trends excluding the accounting adjustment.
• Future capital allocation plans following the cancelled investment.

The full read

Scoda Tubes reported ₹5,186 million in revenue for FY26, a 7% increase. Net profit rose 22% to ₹388 million. However, these results include a change in depreciation method that reduced expenses by ₹156.68 million, providing a significant one-time boost to the bottom line. The company also confirmed the cancellation of its previously proposed EUR 7,000 investment in Arvind sp.z.o.o., which was already known to the market. While the headline growth figures appear healthy, the accounting adjustment complicates the comparison to prior periods. The audit opinion remains unmodified. For a micro-cap entity, these results represent moderate growth, though the accounting change warrants caution when evaluating the quality of the earnings increase.

Primary source: BSE · NSE

What’s new

• FY26 revenue reached ₹5,186 million, marking a 7% year-on-year growth.
• The board cancelled the proposed acquisition of Polish entity Arvind sp.z o.o.
• Cross-border remittance and regulatory hurdles forced the deal's withdrawal.

Why it matters

Profit growth outpaced revenue gains, indicating improved margins for the year. The failed Polish deal shows the friction micro-caps face when attempting international expansion.

What we’re watching

• Whether the company pursues alternative international growth strategies.
• Margin sustainability in the coming quarters.
• Any further commentary on regulatory challenges in European markets.

The full read

Scoda Tubes closed the financial year with ₹5,186 million in revenue, a 7% increase over the ₹4,849 million reported in the prior year. Net profit grew at a faster clip, rising 22% to ₹388 million.

Then, the board walked away from its plan to acquire a 100% stake in the Polish entity Arvind sp.z o.o. The company cited operational hurdles, specifically regarding cross-border fund remittances and regulatory compliance, as the reason for scrapping the €7,000 investment.

While the deal was small in absolute value, its cancellation marks a reversal of the strategy first disclosed in September 2025. The company remains focused on its core operations after the failed international expansion attempt. It is a minor retreat. The numbers suggest the business is doing fine without the Polish expansion.

Primary source: BSE · NSE