Scoda Tubes Ltd Q1 FY27 Earnings Analysis

- The company targets a conservative revenue growth of around 25% for FY27. - Export revenues are expected to grow by approximately 25%, with a target export ratio of 40% of total sales. - Domestic sales growth is guided at about 20%, with potential upside linked to new tender opportunities, especially from power sector contracts like BHEL. - Additional welded pipe capacity (13,000 MT by FY27 end and further 8,000 MT by FY28) will drive volume growth, mainly serving new sectors like data centers, HVAC, and water treatment. - Seamless pipe capacity is stable at 20,000 MT, with no immediate expansion planned. - The welded segment is expected to reach optimum utilization by FY29. - The company is optimistic but cautious due to geopolitical and raw material price volatility, with potential to revise growth outlook upward in H1 FY27 if conditions improve.

- FY27 revenue growth is expected at 25% with EBITDA margins of 14% to 15%. (Page 2) - The company targets a conservative revenue growth outlook but remains open to revisiting it in H1 FY27 depending on geopolitical conditions. (Page 9) - Domestic revenue growth is expected around 20%, with potential to exceed this if key tenders (like BHEL) are secured. Export growth is targeted at 25%. (Page 9) - Operating performance is expected to improve with normalization post-Q4 disruptions, with full capacity utilization of seamless and welded segments expected by FY29. (Pages 16-17, 9) - Solar power projects will reduce electricity costs by approximately INR 8 crores annually, contributing to margin enhancement. (Page 14) - Debt will rise modestly due to capex but will be reduced after capacity utilization improves. (Pages 7, 6)

- FY26 capex was INR110 crores; FY27 expected capex about INR100 crores. - Ongoing capex includes expanding welded pipe capacity by 13,000 MT (INR45 crores), expected operational by Q2 FY27. - Additional welded pipe capacity of 8,000 MT planned with INR40 crores investment, operational by Q1 FY28, optimal utilization by FY29. - Total target capacity expansions: 20,000 MT seamless (no further plans now), 21,000 MT welded by FY29. - Capex funded through internal accruals and term loans; no plans for equity dilution currently. - Solar energy projects: seamless plant saving approx. INR4.9 crores annually and welded plant INR3.8 crores, total INR8 crores savings. - Delays in high-diameter welded pipe capex due to geopolitical and supply chain issues; machines expected by July/August. - Future expansions beyond FY29 possible depending on market demand and product margins; no concrete plans yet.

- No plans for further equity dilution; additional capacity expansion will be funded through internal accruals and term loans. - Debt expected to increase by approximately INR 50 crores next year due to capacity addition and solar projects, with peak debt projected around INR 250 crores. - Management intends to reduce debt once new capacities reach full utilization. - Capex for current expansions (including 13,000 MT seamless and 8,000 MT welded capacity) funded through internal accruals and term loans, no immediate plans for fresh equity. - Future fundraising beyond term loans and internal accruals not indicated as of now.

- Current confirmed order book is around INR 175 crores, covering a period of about 3 to 4 months. - Orders come continuously every few months, with a mix of big and small orders. - No long-dated orders currently; visibility beyond 3-4 months is limited. - The company is awaiting new tenders, especially from BHEL and BARC, expected around July or August 2026. - Participation in upcoming BHEL tender is planned, which may bring high-volume, long-term orders extending over multiple quarters. - Order book includes domestic stockholders, export customers, and fabricators. - Growth in order book visibility is expected post-new tender wins.