Scoda Tubes Q1 FY27 Results (NSE: SCODATUBES)
Signal: Margin pressure
The read
The key inflection is not revenue but earnings conversion: revenue grew 27.6% YoY to ₹1,243.45 million, yet EBITDA grew only 10.4% with margin down 218bps, EBIT fell 6.3% as depreciation rose 173.2%, and PAT fell 25.8%; other income of ₹16.30 million represented 23.3% of PBT, making the bottom line less operationally clean.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹124.35 Cr | 27.6% | +0.6% |
| EBIT | ₹13.48 Cr | -6.3% | |
| Net profit | ₹5.25 Cr | -25.8% | |
| EPS | ₹0.88 | -38.9% | |
| EBIT margin | 14.2% |
P&L walk
Standalone revenue increased 27.6% YoY, but the printed cost structure drove gross margin sharply lower and EBITDA margin contracted to 14.2%; depreciation rose 173.2% and finance costs rose 27.0%, leaving PAT down 25.8%.
Key positives
- Revenue increased 27.6% YoY to ₹1,243.45 million, indicating stronger reported activity than the prior-year quarter.
- Employee benefits rose only 1.7% YoY to ₹24.62 million while revenue grew 27.6%, limiting manpower-cost intensity.
- Finance costs declined 20.3% QoQ to ₹64.81 million, although they remained 27.0% above the year-ago level.
Key concerns
- EBITDA grew only 10.4% YoY to ₹176.1 million versus 27.6% revenue growth, and EBITDA margin contracted 218bps to 14.2%.
- PAT fell 25.8% YoY to ₹52.50 million despite revenue growth, with depreciation up 173.2% to ₹41.31 million.
- The filing's printed raw-material consumption was ₹1,001.65 million, or 80.5% of revenue, versus ₹142.49 million, or 14.6%, in the year-ago quarter; the resulting gross-margin compression is material but its driver is not disclosed.
Earnings quality: includes non-operating other income
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