Analysis: Scoda Tubes Ltd.

Growth thesis

Scoda Tubes is a stainless steel tubes/pipe manufacturer expanding from seamless (20,000 MT capacity by FY26) to diversified seamless and welded (21,150 MT by H1 FY28) production, targeting data centers, HVAC, and power sectors. Growth hinges on 25% revenue growth in FY27 via 8,000 MT welded capacity addition (operational H2 FY27), solar cost savings (INR8.63 crores annually), and 40% export mix. By FY28, welded utilization will reach 100%, seamless utilization 80%, and EBITDA margins stabilize at 14-15%. Key risks include capex delays (INR250 crores peak debt) and tender execution (BHEL/NTPC in July 2026).

Why is Scoda Tubes Ltd. stock rising?

• targeting 25% revenue growth in FY27 with 14-15% EBITDA margins
• new welded facility operational in H2 FY27; trial runs targeted by end of Q2 FY27
• welded capacity expansion adds 8,000 metric tons per annum; total welded capacity to reach 21,150 metric tons by H1 FY28 with optimum contribution by FY29
• entering data centre, water treatment, construction, HVAC sectors via welded products
• mother hollow mill targeting full captive consumption by FY28 (currently 70%)

Research report

companyname: Scoda Tubes Limited ticker: SCODATUBES sector: Stainless Steel Pipes and Tubes Scoda Tubes Limited is a stainless steel pipes and tubes manufacturer with one fully integrated plant in Mehsana, Gujarat. The company was incorporated in 2008 and spent its first decade building a seamless tubes business before adding a mother hollow piercing mill in 2022 and now a major welded pipe line. Its sole factory sits on 21,199 square meters, 360 kilometers from Mundra Port and 23 kilometers fr...

Catalysts

capex, margin expansion, regulatory approval, new product segment

Growth guidance

FY27 revenue growth guided at 25% with 14-15% EBITDA margins