Scoda Tubes raises first-half capex to Rs 110.667 crore

Scoda Tubes Limited spent Rs 110.667 crore on asset purchases and changes in capital work-in-progress and intangibles in the half year ended September 30, 2026. Scoda Tubes funded part of this outlay with Rs 43.955 crore of net borrowing proceeds, while cash and cash equivalents declined to Rs 74.80 lakh.

How much did Scoda Tubes spend on capital expenditure?

Scoda Tubes spent Rs 110.667 crore on property, plant and equipment, capital work-in-progress, or CWIP, and intangible assets in the half year ended September 30, 2026. This was Rs 64.816 crore above the Rs 45.851 crore spent in the corresponding 2025 half year, according to the cash-flow statement.

The asset-related outflow exceeded Rs 53.358 crore of net operating cash flow in the latest half year. Net cash used in investing activities nevertheless fell to Rs 87.194 crore from Rs 141.225 crore a year earlier because Scoda Tubes reported a Rs 21.442 crore withdrawal from fixed-deposit investments in 2026, against a Rs 98.904 crore investment in those deposits in 2025.

Where is Scoda Tubes’ investment reflected on the balance sheet?

Scoda Tubes’ largest disclosed non-current asset increase was in CWIP, which rose to Rs 45.385 crore at September 30, 2026 from Rs 8.810 crore at March 31, 2026. The Rs 36.575 crore movement means a material part of the reported investment remained classified as work in progress at the reporting date.

Property, plant and equipment increased by Rs 34.070 crore over the six months to Rs 217.213 crore. Intangible assets under development rose by Rs 8.50 lakh to Rs 23.30 lakh, while depreciation and amortisation expense was Rs 8.935 crore in the half year, compared with Rs 3.291 crore in the corresponding 2025 period.

Other non-current assets increased to Rs 72.898 crore from Rs 41.778 crore, and other financial assets rose to Rs 10.784 crore from Rs 7.611 crore. The filing does not identify the projects within CWIP, give commissioning dates or specify the intended use of the Rs 45.385 crore balance.

How did Scoda Tubes fund the higher asset spending?

Scoda Tubes funded part of its asset spending through Rs 43.955 crore of net borrowing proceeds in the half year ended September 30, 2026. That compares with a Rs 8.317 crore net repayment of borrowings in the corresponding 2025 half year, while financing cash flow was Rs 30.498 crore after finance costs paid of Rs 13.414 crore.

Non-current borrowings rose by Rs 52.725 crore to Rs 96.788 crore at September 30 from Rs 44.063 crore at March 31. Current borrowings fell by Rs 8.770 crore to Rs 132.422 crore, leaving total reported borrowings at Rs 229.210 crore, up from Rs 185.255 crore at the financial year-end.

The financing mix differed from the previous-year period. Scoda Tubes reported Rs 219.999 crore from an issue of equity shares in the 2025 half year and Rs 11.561 crore of related issue expenses, whereas the 2026 half-year cash-flow statement reports neither item.

What happened to Scoda Tubes’ operating cash flow and liquidity?

Scoda Tubes generated Rs 53.358 crore of net operating cash flow in the 2026 half year, compared with an outflow of Rs 51.030 crore in the corresponding 2025 period. Cash generated from operations was Rs 60.592 crore before Rs 7.234 crore of income taxes paid, versus negative Rs 36.093 crore before tax payments a year earlier.

The year-on-year change included a Rs 2.407 crore cash inflow from trade receivables in 2026, compared with a Rs 53.018 crore outflow in 2025. Inventory absorbed Rs 17.323 crore of cash, less than the Rs 63.994 crore absorbed a year earlier, while trade payables increased by Rs 53.779 crore.

Cash and cash equivalents fell by Rs 3.340 crore during the half year to Rs 74.80 lakh from Rs 4.088 crore. Scoda Tubes also reported Rs 48.707 crore of bank balances other than cash equivalents at September 30, down from Rs 70.149 crore at March 31; the balance sheet presents these separately from cash and cash equivalents.

How did first-half earnings change at Scoda Tubes?

Scoda Tubes reported Rs 10.035 crore of profit after tax for the half year ended September 30, 2026, down from Rs 21.052 crore in the corresponding period. Revenue from operations rose to Rs 273.293 crore from Rs 242.682 crore, but profit before tax declined to Rs 13.030 crore from Rs 28.045 crore.

Total expenses increased by Rs 43.820 crore to Rs 263.881 crore, exceeding the Rs 30.611 crore rise in revenue. Finance costs rose to Rs 13.414 crore from Rs 10.614 crore, depreciation and amortisation increased to Rs 8.935 crore from Rs 3.291 crore, and basic and diluted earnings per share declined to Rs 1.68 from Rs 3.86.

Conclusion

Scoda Tubes’ first-half accounts show that the Rs 110.667 crore asset outlay was substantially higher than the previous year’s Rs 45.851 crore, with CWIP rising by Rs 36.575 crore. Operating cash flow returned to a positive Rs 53.358 crore, but did not cover the reported asset expenditure, and total borrowings increased by Rs 43.955 crore.

The next point to watch is whether Scoda Tubes provides details of the projects represented by its Rs 45.385 crore CWIP balance, as the filing gives no project description or commissioning timeline. Subsequent results can also show whether the September 30 borrowing balance of Rs 229.210 crore and first-half finance cost of Rs 13.414 crore change as the asset additions progress.