Scoda Tubes Q2 FY27 Results (NSE: SCODATUBES)
Signal: Margin pressure
The read
The trajectory weakened materially: revenue growth decelerated from 27.6% YoY in Q1FY27 to 2.5% in Q2FY27, while EBITDA margin fell 512bps YoY to 11.9% and PAT decline deepened from 25.8% to 65.8%; the immediate earnings swing is higher depreciation of ₹48.04 million and finance costs of ₹69.33 million after the capex ramp, not a gross-margin collapse.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹148.95 Cr | +2.5% | +19.8% |
| EBIT | ₹12.97 Cr | -46.6% | |
| Net profit | ₹4.79 Cr | -65.8% | |
| EPS | ₹0.8 | -66.9% | |
| EBIT margin | 11.9% |
P&L walk
Revenue increased 2.5% YoY to ₹1,489.48 million, but EBITDA margin contracted 512bps to 11.9%; higher depreciation of ₹48.04 million and finance costs of ₹69.33 million drove EBIT down 46.6% and PAT down 65.8%.
Key positives
- Gross margin remained broadly stable at 33.4% YoY, down only 22bps despite the sharp earnings decline.
- Operating cash flow improved to ₹533.58 million in H1FY27 from an outflow of ₹510.30 million in H1FY26.
- Property, plant and equipment rose to ₹2,172.13 million and CWIP to ₹453.85 million, indicating that the expansionary capex cycle is progressing into the asset base.
Key concerns
- Revenue growth slowed to 2.5% YoY in Q2FY27 from 27.6% in Q1FY27, indicating a sharp loss of momentum.
- EBITDA margin contracted 512bps YoY to 11.9% as other expenses rose 27.9% while revenue rose only 2.5%.
- PAT fell 65.8% YoY to ₹47.85 million as depreciation rose 179.5% and finance costs rose 25.8%.
- H1FY27 capex of ₹1,106.67 million and higher borrowings are increasing the near-term depreciation and financing burden before the new asset base demonstrates sufficient earnings contribution.
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