Scoda Tubes profit rises 22% as accounting change boosts bottom line
Revenue grew 7% to ₹5,186 million for FY26, but a shift in depreciation methods provided a one-time lift to net profit.
— 1 earlier story on Scoda Tubes Ltd. →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 this 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.
Questions answered
- How much did the change in depreciation method affect profit?
- The change in depreciation method reduced expenses by ₹156.68 million, which directly increased the reported net profit.
- What was the revenue growth for the year?
- Scoda Tubes reported revenue of ₹5,186 million for FY26, representing a 7% increase.
- Did the company proceed with its investment in Arvind sp.z.o.o.?
- No, the proposed EUR 7,000 investment in Arvind sp.z.o.o. was cancelled, a move previously disclosed in earlier filings.
- What is the status of the audit opinion?
- The audited financial results for Q4 and FY26 carry an unmodified audit opinion.
Story so far
All notes on SCODATUBES →- 26 May 2026 · 6:06 PM IST Scoda Tubes profit rises 22% as accounting change boosts bottom line
- 1d ago Scoda Tubes profit climbs 22% as it scraps Polish acquisition