Scoda Tubes Limited has informed the Exchange about proposed capacity addition of Welded Tubes & Pipes being undertaken at the Land of the Company situated at Survey No. 682, Vill: Sarsav, Ta:- Kadi, Dist:- Mehsana.
SCODATUBES · price
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Scoda Tubes Limited has announced a proposed capacity addition of 8,000 MTPA (metric tonnes per annum) for Welded Tubes & Pipes at its existing land in Sarsav, Kadi, Mehsana, Gujarat. This is in addition to the expansion plan already disclosed in the company's May 2025 IPO prospectus. The total investment required is around ₹400 million (including taxes), to be funded through internal accruals and a bank term loan. The new capacity is targeted to be ready by the end of Q3 FY 2026-27. The company's current installed capacity is 1,020 MTPA, so this addition would nearly 9x its existing capacity. However, utilization remains very low at only about 105 MT during April–December 2025, raising questions about near-term demand visibility.
The ₹400 million capex is a significant expansion step for a recently listed company and, combined with the ongoing IPO-era expansion, signals aggressive growth ambitions. Near-term, low utilization rates may pressure margins, but long-term shareholders benefit from potential scale and market share gains if demand picks up.