Scoda Tubes grows revenue, but faster costs cut operating margin
Standalone revenue rose 19.79% sequentially, but higher expenses, interest and depreciation pulled net profit down 8.76%.
Filed 06 Nov 2026, 16:22 IST · after market close · Scoda Tubes Ltd (SCODATUBES)
Key takeaways
- Revenue grew 19.79% sequentially, but operating profit fell 1.25% as expenses rose faster.
- Operating margin narrowed by 2.25 percentage points to 10.60%, below the 11.15% median for 185 reported Industrials peers.
- Other income contributed 33.00% of pre-tax profit, while the tax rate fell 4.28 percentage points sequentially.
Price around the results
Revenue growth did not translate into profit growth
Scoda Tubes reported standalone revenue growth of 19.79% sequentially to Rs 148.95 cr, but operating profit declined 1.25% to Rs 15.78 cr. Expenses grew 22.88%, outpacing revenue, while net profit fell 8.76% to Rs 4.79 cr. Pre-tax profit declined 13.86% to Rs 6.03 cr.
Costs pushed margin below the peer median
Operating margin narrowed by 2.25 percentage points to 10.60% because expenses grew faster than revenue. Interest increased 6.94% and depreciation rose 16.22% sequentially, adding to the pressure below operating profit. The margin was 0.55 percentage points below the 11.15% median among 185 Industrials peers that had reported.
Profit quality was supported by other income and tax
Other income accounted for 33.00% of pre-tax profit, making it a material part of reported earnings. The tax rate fell by 4.28 percentage points to 20.69%, which partly softened the decline in pre-tax profit at the net-profit level. The only available prior-quarter comparison also shows operating margin moving down from 12.85%.
Management points to growth, efficiency and expansion
Management said it expects FY27 revenue growth of 20–25%, supported by its order pipeline, manufacturing expansion and execution. The company said it aims to protect current margins and improve them through efficiency gains and operating leverage, while providing no specific margin guidance. Management also cited private-player competition and elevated power, fuel and freight costs as operating challenges. It said trial production at the expanded welded facility is planned for Q4 2027; the presentation shows seamless capacity rising from 10,068 MTPA to 20,068 MTPA and welded capacity from 1,020 MTPA to 21,150 MTPA after expansion.
Filing came after the market close
The standalone results were filed after market close on 6 November 2026, so there is no market reaction to assess yet.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹149 cr | ₹124 cr | +19.79% |
| Other income | ₹2 cr | ₹2 cr | +22.09% |
| Expenses | ₹133 cr | ₹108 cr | +22.88% |
| Operating profit | ₹16 cr | ₹16 cr | -1.25% |
| Operating margin (%) | 10.60% | 12.85% | — |
| Interest | ₹7 cr | ₹6 cr | +6.94% |
| Depreciation | ₹5 cr | ₹4 cr | +16.22% |
| Profit before tax | ₹6 cr | ₹7 cr | -13.86% |
| Tax | ₹1 cr | ₹2 cr | -28.57% |
| Net profit | ₹5 cr | ₹5 cr | -8.76% |
| EPS (₹) | ₹0.80 | ₹0.88 | -9.09% |
Operating margin of 10.60% compares with a Industrials sector median of 11.15% across 185 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company expects FY27 revenue growth of 20–25%, supported by its order pipeline, manufacturing expansion and execution.
- The company aims to protect current margins and improve them through efficiency gains and operating leverage.
- The company says it is not providing specific margin guidance.
Expansion
- The company plans to start trial production at its expanded welded facility in Q4 2027 and commission dedicated solar capacity.
- The company’s solar power capacity for seamless operations is already operational.
- The company has a hot piercing mill with 20,000 MTPA capacity for producing mother hollow.
- Seamless production capacity is shown increasing from 10,068 MTPA to 20,068 MTPA after expansion.
- Welded production capacity is shown increasing from 1,020 MTPA to 21,150 MTPA after expansion.
New initiatives
- The company is focusing on operational efficiency, cost optimisation and strengthening its competitive position.
Problems & risks
- The company cites intensifying private-player competition and elevated power, fuel and freight costs as operating challenges.
What to watch
- Whether operating margin recovers from 10.60% after the 2.25-percentage-point sequential decline.
- Whether expenses continue to grow faster than revenue after rising 22.88% versus revenue growth of 19.79%.
- Whether other income remains a material contributor after accounting for 33.00% of pre-tax profit.