1. At a Glance – The “IPO Se Utra, Reality Mein Aaya” Snapshot
Scoda Tubes is that classic mid-cap industrial kid who had a blockbuster IPO entry, clicked selfies at ₹231, and then reality slapped him back to ₹130. Market cap sits at ₹780 Cr, sales at ₹519 Cr, and TTM PAT ₹39.4 Cr. ROE is a spicy 29.7%, ROCE a respectable 20.4%, and debt-to-equity at 0.55 — not exactly drowning, but definitely treading water.
Latest Q3 FY26 (Dec 2025) numbers:
- Revenue: ₹152 Cr (YoY +17.3%)
- PAT: ₹11.5 Cr (YoY +17.8%)
- OPM: ~15%, steady as your office canteen chai
The stock is down 32% in 6 months, despite profits growing 41% TTM. Translation? Fundamentals running, stock jogging backwards. IPO fatigue, anyone?
So the big question: is this a solid stainless-steel compounding machine temporarily ignored, or just another capital-goods stock waiting for capex Godot? Let’s open the pipes and see what’s flowing.
2. Introduction – Stainless Steel, Heavy Capex & Heavier Expectations
Founded in 2008, Scoda Tubes manufactures stainless steel seamless pipes, tubes, U-tubes, and instrumentation tubes. These are not your neighbourhood plumbing pipes. These go into oil & gas, power, chemicals, engineering, and process industries — places where failure means headlines, not leakage complaints.
The company went public in June 2025, raised ₹220 Cr, promised capacity expansion, global ambitions, and better margins through backward integration. Investors bought the dream. Then reality showed up with execution timelines, debt, working capital, and quarterly patience tests.
What’s interesting is that Scoda is not a loss-making dreamer. It’s profitable, expanding, backward-integrated (mother hollow plant commissioned in May 2022), and already exporting to 11 countries. Yet, it’s priced like the market is saying:
“Beta, pehle capacity chala ke dikha.”
Is the market wrong? Or just early? Let’s dissect.
3. Business Model – WTF Do They Even Do?
Imagine molten steel being bullied into shape through precision engineering. That’s Scoda’s daily job.
Core Products
- Seamless Stainless Steel
- Pipes & Tubes (85% of revenue)
- U-Tubes & Instrumentation Tubes
- Welded Tubes & U-Tubes (currently tiny but future growth engine)
Why Seamless Matters
Seamless tubes = no welded joints = higher pressure tolerance = premium pricing. That’s why seamless contributes 85% of revenue and most of the margin.
Backward Integration Flex
Scoda commissioned a 20,000 TPA mother hollow hot piercing mill in May 2022. This reduces dependency on external suppliers, improves cost control, and stabilizes margins. In pipe manufacturing, this is like owning your own wheat farm instead of buying atta daily.
Customers
- Top 1 customer: 18.5% of revenue
- Top 10 customers: 58%
Yes, some concentration risk. But this is typical in industrial B2B where qualification cycles are long and sticky.
Lazy investor question: If capacity doubles, can the customer base absorb it?
That’s the real execution exam.
4. Financials Overview – The Numbers Without Makeup
Quarterly Comparison (₹ Cr)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 152 | 130 | 145 | 17.3% | 4.8% |
| EBITDA | 23 | 23 | 22 | ~0% | 4.5% |
| PAT | 11.5 | 9.8 | 14.0 | 17.8% | -17.9% |
| EPS (₹) | 1.91 | 2.33 | 2.20 | -18.0% | -13.2% |
Result Type Lock: Quarterly Results
EPS Annualisation Rule:
Average EPS (Q1–Q3 FY26) ≈ (1.55 + 1.18 + 2.33) / 3 ≈ 1.69
Annualised EPS ≈ ₹6.8–7.0
Which aligns with reported TTM EPS ₹6.97. No jugaad, no over-annualisation nonsense.
Witty takeaway: Revenue is consistent, margins are stable, but PAT can swing quarter-to-quarter thanks to interest, tax,
