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Scoda Tubes Reports FY26 Growth Amidst Working Capital Concerns
Scoda Tubes Limited posted a 7% rise in revenue from operations for fiscal year 2026, reaching ₹518.7 crore compared to ₹484.9 crore in FY25. The company's Profit After Tax (PAT) saw a significant 22.4% increase, climbing to ₹38.8 crore from ₹31.7 crore in the prior fiscal year.
Key Financial Highlights
For FY26, Scoda Tubes reported total revenue from operations of ₹518.7 crore. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at ₹76.2 crore, while Profit After Tax (PAT) was ₹38.8 crore. A notable driver of this performance was a 39% surge in export revenue, underscoring the company's international market success.
Financial Performance Context
In the previous fiscal year, FY25, Scoda Tubes had recorded revenue of ₹484.9 crore and a PAT of ₹31.7 crore. The EBITDA for FY25 was ₹78.1 crore, and the company maintained a positive operating cash flow of ₹18.4 crore.
Investor Watch Points
While the growth in PAT outpaced revenue growth and export performance was strong, investors are now focused on the company's working capital management. The shift to a negative operating cash flow and an increase in debtor days present challenges that the company will need to address.
Emerging Risks
The primary concern highlighted in the results is the negative operating cash flow of ₹-13.8 crore in FY26, a reversal from the positive ₹18.4 crore in FY25. This development is closely linked to an increase in debtor days, which rose to 97 days from 76 days in the prior year. Additionally, EBITDA experienced a slight decline of 2.3%.
Key Metrics Update (FY26 vs. FY25)
- Revenue Growth: 7% YoY
- PAT Growth: 22.4% YoY
- Export Revenue Growth: 39% YoY
- Domestic Revenue: Decreased 4.7% YoY to ₹339.2 crore
- EBITDA: Declined 2.3% YoY to ₹76.2 crore
- Operating Cash Flow: Negative ₹-13.8 crore (from positive ₹18.4 crore)
- Debtor Days: Increased to 97 days (from 76 days)
- Net Debt/Equity Ratio: Improved to 0.3x (from 1.1x)
Future Focus for Investors
Moving forward, investors will closely monitor Scoda Tubes' strategies for improving working capital, particularly in reducing debtor days and enhancing operating cash flow. The company's ability to sustain its export-led growth will also be a critical factor to observe in the coming quarters.