Scoda Tubes delays integration as gas outage hits quarterly revenue
Management pushed its captive consumption target to FY28 and lowered FY27 capacity forecasts, even as it targets 25% revenue growth this year.
— 2 earlier stories on Scoda Tubes Ltd. →What's new
- Captive consumption of mother hollows is delayed by two years to FY28.
- Management lowered capacity utilization forecasts for FY27.
- A ₹100 cr capex plan targets data centre cooling and power fabrication.
Why this matters
The delay in backward integration and lower utilization targets suggest operational friction that offsets the company's growth ambitions. While management remains optimistic about a 25% revenue jump, the reliance on a new ₹100 crore platform to reach these targets adds execution risk.
What we're watching
- Whether EBITDA margins recover to the guided 14-15% range.
- Progress on the new welded tubes platform for data centres.
- Order book replenishment beyond the current 3-4 month visibility.
The full read
Scoda Tubes is recalibrating its operational timeline. Management confirmed on May 28 that the goal for full captive consumption of mother hollows is pushed to FY28, a two-year delay. This follows a difficult quarter where a gas supply disruption wiped out ₹16 crore in revenue. Despite these headwinds, the company is betting on a ₹100 crore capex programme to enter the data centre cooling and power fabrication markets. Executives are guiding for 25% revenue growth and an EBITDA margin recovery to 14-15% for the current fiscal year. With an order book of ₹175 crore providing only three to four months of visibility, the company's ability to meet these targets hinges on the rapid execution of its new welded tubes platform. The lowered capacity utilization forecasts for FY27 suggest that the path to these growth targets is narrower than previously expected.
Questions answered
- Why did Scoda Tubes lower its capacity utilization outlook?
- Management adjusted its FY27 forecasts downward, citing operational delays and a recent gas supply disruption that cost the company ₹16 crore in revenue.
- What is the status of the company's backward integration?
- The target for full captive consumption of mother hollows is now set for FY28, which is two years later than the original plan.
- How does the company plan to grow revenue by 25%?
- Management is investing ₹100 crore in a new welded tubes platform, aiming to capture demand in the data centre cooling and power fabrication markets.
- How much revenue visibility does the current order book provide?
- The order book stands at ₹175 crore, which covers three to four months of operations.
Story so far
All notes on SCODATUBES →- 28 May 2026 · 12:51 PM IST Scoda Tubes delays integration as gas outage hits quarterly revenue
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