Scoda Tubes September profit falls 66% as costs rise sharply

Scoda Tubes Limited reported profit of Rs 4.79 crore for the quarter ended September 30, 2026, down 66% from Rs 13.97 crore a year earlier, despite a 3% increase in revenue from operations to Rs 148.95 crore. Total expenses rose 11% to Rs 144.90 crore, led by higher other expenses, depreciation and finance costs.

What did Scoda Tubes report for the September quarter?

Scoda Tubes reported total income of Rs 150.94 crore for the quarter ended September 30, 2026, compared with Rs 148.93 crore in the September 2025 quarter. Revenue from operations increased by Rs 3.68 crore to Rs 148.95 crore, while other income declined to Rs 1.99 crore from Rs 3.66 crore.

Profit before tax fell to Rs 6.03 crore from Rs 18.77 crore in the corresponding quarter a year earlier. The September 2026 result included a Rs 1.55 crore deferred-tax charge and a Rs 0.30 crore current-tax credit, producing profit for the period of Rs 4.79 crore. Basic and diluted earnings per share, not annualised, declined to Rs 0.80 from Rs 2.42.

On a sequential basis, September-quarter revenue rose from Rs 124.35 crore in the quarter ended June 30, 2026, but profit for the period declined from Rs 5.25 crore. Total income increased from Rs 125.98 crore, while total expenses climbed from Rs 118.98 crore to Rs 144.90 crore, reducing profit before tax from Rs 7.00 crore.

Which expenses reduced Scoda Tubes' quarterly profit?

Scoda Tubes' total expenses increased by Rs 14.74 crore year on year to Rs 144.90 crore, exceeding the Rs 3.68 crore increase in revenue from operations. Other expenses rose 28% to Rs 30.97 crore, depreciation and amortisation increased 179% to Rs 4.80 crore, and finance costs rose 26% to Rs 6.93 crore.

The inventory movement was also less favourable than in the prior-year quarter. Changes in inventories of finished goods and work in progress were negative Rs 4.32 crore in the September 2026 quarter, compared with negative Rs 24.17 crore a year earlier. That movement added Rs 19.85 crore to expenses year on year, although raw-material and component consumption fell to Rs 103.50 crore from Rs 120.59 crore.

Employee-benefit expense increased to Rs 3.02 crore from Rs 2.30 crore in September 2025. Higher other expenses, depreciation, finance costs, employee expenses and the smaller inventory reduction outweighed the Rs 17.09 crore decline in raw-material consumption, resulting in a Rs 12.74 crore reduction in profit before tax.

Scoda Tubes manufactures stainless-steel pipes and tubes only, according to the notes accompanying the September 2026 results. The company said segment reporting under Indian Accounting Standard 108, or Ind AS 108, was not applicable, so the filing does not provide revenue or profit figures by product category or customer market.

How did Scoda Tubes perform in the first half of 2026-27?

Scoda Tubes reported revenue from operations of Rs 273.29 crore for the half year ended September 30, 2026, up from Rs 242.68 crore in the half year ended September 30, 2025. Profit for the period, however, fell 52% to Rs 10.04 crore from Rs 21.08 crore as total expenses increased 20% to Rs 263.88 crore.

First-half total income rose to Rs 276.91 crore from Rs 248.11 crore, while profit before tax declined to Rs 13.03 crore from Rs 28.05 crore. Finance costs increased to Rs 13.41 crore from Rs 10.61 crore, depreciation and amortisation rose to Rs 8.94 crore from Rs 3.29 crore, and other expenses increased to Rs 52.32 crore from Rs 36.02 crore.

First-half basic and diluted earnings per share were Rs 1.68, compared with Rs 3.86 in the year-earlier half. Total comprehensive income was Rs 10.22 crore versus Rs 21.21 crore, after net other comprehensive income of Rs 0.19 crore in the September 2026 half year.

For the year ended March 31, 2026, Scoda Tubes reported revenue from operations of Rs 518.65 crore and profit for the period of Rs 38.84 crore. The September 2026 half-year revenue of Rs 273.29 crore exceeded half of that preceding full-year revenue, while half-year profit of Rs 10.04 crore was about one-quarter of the preceding full-year profit.

What do Scoda Tubes' cash flow and balance sheet show?

Scoda Tubes generated net cash from operating activities of Rs 53.36 crore in the half year ended September 30, 2026, compared with net cash used in operating activities of Rs 51.03 crore in the year-earlier half. Cash generated from operations was Rs 60.59 crore, including a Rs 53.78 crore increase in trade payables, while inventories increased by Rs 17.32 crore.

Net cash used in investing activities was Rs 87.19 crore, compared with Rs 141.23 crore in the prior-year half. Purchases of property, plant and equipment, changes in capital work in progress, and intangible assets totalled Rs 110.67 crore, while withdrawal of fixed deposits contributed Rs 21.44 crore.

Total assets stood at Rs 792.63 crore at September 30, 2026, up from Rs 687.90 crore at March 31, 2026. Property, plant and equipment increased to Rs 217.21 crore from Rs 183.14 crore, while capital work in progress rose to Rs 45.39 crore from Rs 8.81 crore.

Combined current and non-current borrowings were Rs 229.21 crore at September 30, 2026, compared with Rs 185.25 crore at March 31, 2026. Non-current borrowings rose to Rs 96.79 crore from Rs 44.06 crore, while current borrowings declined to Rs 132.42 crore from Rs 141.19 crore; cash and cash equivalents fell to Rs 0.75 crore from Rs 4.09 crore.

Conclusion

Scoda Tubes increased September-quarter revenue by 3% to Rs 148.95 crore, but profit for the period declined 66% to Rs 4.79 crore as total expenses rose 11%. The first-half results showed the same pattern, with revenue up 13% to Rs 273.29 crore while profit fell 52% to Rs 10.04 crore amid higher depreciation, finance costs and other expenses.

The filing discloses no profit target, operating plan or scheduled business milestone. Subsequent disclosures will clarify the effect of Rs 110.67 crore of first-half investment spending, including the increase in capital work in progress to Rs 45.39 crore, and whether expenses and borrowings change from their September 30, 2026 levels.