Scoda Tubes LtdQ3 FY25Industrial Products

Scoda Tubes Ltd

Q3 FY25 Earnings Call Analysis

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Revenue guidance

Category 2

→Targeting 20% revenue growth in FY '26 driven by new capacity coming on stream from November 2025.
→Seamless capacity to reach 20,000 MT by December 2025 with ramp-up expected to hit 60-65% utilization in FY '26, increasing to ~80% in FY '27.
→Welded capacity to be commissioned in Q1 FY '27, with 30% utilization expected in FY '27 and full utilization by FY '28.
→Export revenue expected to grow, targeting 40-45% of total revenue by full utilization in FY '28.
→Industry growth estimated at 7-8% annually for stainless steel pipes and tubes in India; global demand growth at 3-4%.
→Expansion and acquisitions (e.g., Arvind sp.z o.o.) to support international market penetration and long-term value creation.
→Demand growth fueled by opportunities in power, renewable energy, oil & gas, and new sectors like water purification.

Category 3

→Scoda Tubes targets 20% revenue growth driven by new seamless and welded capacity coming online starting November 2025 and Q1 FY '27 respectively.
→Margins expected to sustain at 15-16%, supported by higher contribution from welded products and new product launches.
→Seamless product margins are typically 16-18%, welded products 12-13%, leading to blended margins.
→Expect utilization of seamless capacity to ramp to ~80% by FY '27 and welded capacity utilization at 30% in FY '27, full utilization by FY '28.
→Export revenue expected to increase to 40-45% of total revenue by FY '28, boosting profitability.
→PAT margin improvements noted with 8.7% in H1 FY '26 vs. 6.6% prior year, indicating improving earnings quality.
→Continued focus on operational efficiency and capacity expansion aimed at sustainable and profitable growth over coming years.

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→No mention of any current or planned new fundraising through debt or equity in the provided transcript.
→Capital expenditure is being funded from existing IPO proceeds (INR27 crores spent on capex, INR110 crores in bank, and INR50 crores used for working capital).
→No indication of increase or decrease in capex guidance (around INR100 crores initially estimated).
→Working capital deployed as planned, with no stated need for additional external funding.
→Focus remains on operational efficiency and capacity expansion funded through internal accruals and IPO proceeds.

→As of November 14, 2025, Scoda Tubes Limited's current order book stands at INR 194 crores.
→The order book comprises INR 104 crores from the export market and INR 90 crores from the domestic market.
→The company recently secured a $1 million order from a US customer, indicating continued international demand.
→The company aims to increase exports to 40-45% of total revenue by FY 2028, aligning with optimal utilization of welded and seamless capacities.
→There is strong demand expected in sectors such as oil and gas, power, and renewable energy, supporting future order inflows.

Yes

→INR 27 crores has already been spent on capex in H1 FY '26.
→Total estimated capex for current expansions is around INR 100 crores.
→No increase or decrease expected in the capex; largely remains as earlier communicated.
→Capital work in progress as of September 30, 2025, stands at INR 61.1 crores.
→New seamless capacity expansion underway, increasing from 17,000 to 20,000 metric tons per annum by December 2025.
→Welded plant construction started; commercial production targeted for Q1 FY '27.
→Finished goods capacity will scale up from 11,088 to 33,128 metric tons per annum.
→Working capital deployment of INR 50 crores underway.
→Strategic acquisition of Arvind sp.z o.o. (Poland-based trading firm) completed to strengthen international footprint in Eastern Europe.

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