Scoda Tubes Limited

Incorporated in 2008 by Dhanraj Khatri and Mahesh Patel, STL is presently led by Jagrut Patel (since 2016), alongside core promoters Samarth Patel, Ravi Patel and Saurabh Patel who bring over a decade of steel industry experience. Samarth Patel oversees exports, Jagrut Patel looks after domestic sales, Saurabh Patel is involved in project development, and Ravi Patel handles finance and banking. Supported by experienced team across divisions, STL has built almost two-decade track record in

STL’s TOI grew from ₹105.90 crore in FY21 to ₹486.30 crore in FY25, exhibiting a compound annual growth rate (CAGR) of ~47%, considering increasing production capacity over the years. In H1FY26, STL reported ₹242.68 crore of TOI. Profitability remained healthy, with PBILDT margin at 16.34% in FY25 and 14.92% in FY24. Improvement in margins are considering STL’s backward integrated mother hollow plant, which commenced operations from FY23 onwards. Going further, with commencement

STL has a working capital intensive business model with higher inventory period of 119 days in FY25 led by an extended work - in-process cycle and stringent quality checks. Collection period remains at 60 -70 days and creditors period at 50-55 days, leading to a working capital cycle of 136 days in FY25 (FY24: 12 7 days). Gross current asset days stood at 223 days in FY25 , compared to 210 days in FY24. With expected increase in scale of operations going forward, working capital cycle is expecte

STL is expanding its production capacity of seamless product from 10,068 MTPA to 20,068 MTPA and welded products from 1020 MTPA to 13,150 MTPA at a total projected cost of ~₹105 crore, which will be funded entirely through IPO proceeds. Trial runs for seamless product are in progress, and it is expected to commence operations from December 25. For welded product, it is expected that operations will commence from Q1FY27 onwards. Although seamless product plant is at near to completion stage

Profitability remains exposed to price volatility of its key raw material, round bars, which forms major portion of cost of sales. While the company shifted from importing hollow pipes to sourcing round bars domestically through backward integration of hollow pipes in FY23, inherent price fluctuations in steel prices continue to remain with high inventory holding of ~120 days. However, STL’s inventory are order-backed which insulates STL to a certain extend from raw -material price fluctuations.

Steel is a cyclical industry, strongly correlated to economic cycles since its key users, construction, infrastructure, autom obiles and capital goods heavily depend on the economy. The steel pipes industry is highly competitive due to presence of organised and unorganised players and expanding applications of types of steel pipe s.