Skipper Limited — Q1 FY26 earnings call

Call held 31 Jul 2025

Management summary

Skipper Limited delivered a strong Q1 FY26, driven by robust execution in Engineering and Polymer segments, leading to a 15% revenue growth and 22% EBITDA increase. The company secured significant new orders, boosting its order book to an all-time high, and is actively expanding capacity to meet growing domestic and international demand, particularly in the T&D sector. Management expressed confidence in achieving 25%+ revenue growth and margin improvement for FY26.

Highlights

  • Net revenue grew 15% YoY to INR1,2539 million.

  • Reported EBITDA rose 22% YoY to INR1,272 million.

  • Consolidated EBITDA margins improved to 10.1% from 9.6% YoY.

  • Stand-alone PAT increased 41% YoY to INR447 million.

  • Order inflow for Q1 FY26 surged 158% YoY to over INR1,9774 million.

  • Order book reached an all-time high of INR85,205 million.

  • New 75,000 MTPA capacity is fully operational, with another 75,000 MTPA planned by FY26 end.

  • Polymer business achieved 40% YoY volume growth.

Concerns

  • Availability of skilled manpower for project execution.

Key financials

  1. Net Revenue 12,539 Mn +15%YoY
  2. EBITDA 1,272 Mn +22%YoY
  3. Consolidated EBITDA Margin 10.1%
  4. Stand-alone PBT 598 Mn +41%YoY
  5. Stand-alone PAT 447 Mn +41%YoY
  6. Order Inflow 19,774 Mn +158%YoY
  7. Order Book 85,205 Mn

What they filed

Q1 FY27: revenue up 4.5%, net profit up 26.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,110 1,135 1,288 1,254 1,262 +14%1,371 +21%1,667 +29%1,310 +4%
EBITDA111 111 124 127 131 +18%141 +27%173 +40%140 +10%
Net profit33 36 48 45 37 +12%53 +47%78 +63%57 +27%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
3,539 Mn Total
  • Polymer 1,272 Mn 35.9%
  • Engineering 1,248 Mn 35.3%
  • Infra 1,019 Mn 28.8%

Guidance & targets

Order Inflow

  • Export Order Inflow Order Inflow · This year (FY26) · High confidence INR1,500-1,600 crores

    Previously INR700-800 crores → INR1,500-1,600 crores

    This year, overall, we have a target to double our export order inflow from previous year approximately INR700 crores to INR800 crores. We feel that we can take a target to double it to about INR1,500 crores to INR1,600 crores of new order inflows, which should definitely have a positive effect on execution.

    — Sharan Bansal

  • Total Order Inflow Order Inflow · This year (FY26) · High confidence INR6,500-7,000 crores
    Yes, absolutely. We expect that our total order inflow for this year should be in the range of INR6,500 crores to INR7,000 crores.

    — Sharan Bansal

Capacity

  • New Capacity Commissioning Capacity · End of this financial year (FY26) · High confidence 75,000 metric tons
    And further capacity expansion plan is taken on for another 75,000, which we hope to commission by end of this financial year.

    — Sharan Bansal

Revenue Growth

  • Overall Revenue Growth Revenue Growth · Full financial year (FY26) · High confidence 25%
    So I think certainly, overall, we are quite confident and we have given a guidance also that the company is on track to deliver 25% overall revenue growth in this full financial year over last financial year.

    — Sharan Bansal

  • Infra Segment Growth Revenue Growth · Full year basis (FY26) · High confidence 20-25%
    However, despite that, we are confident that even in Infra segment over the full year basis, we will be able to deliver 20% to 25% growth in the Infra segment also in line with our company's revenue growth aspiration.

    — Sharan Bansal

  • Overall Revenue Growth Revenue Growth · Next 2-3 years · High confidence 25%
    Yes, we are sticking to the 25% revenue guidance because as because now last year in FY '25, we have more or less achieved full capacity utilization... So which is why 25% is what the reasonable you can expect from the company over the next 2 to 3 years.

    — Sharan Bansal

Profitability

  • EBITDA Margin Improvement Profitability · Over last year (FY26 vs FY25) · High confidence 50 basis points
    So we are quite confident that we should be able to deliver at least a 50 basis point improvement in EBITDA margins over last year.

    — Sharan Bansal

Debt

  • Interest Expense as % of Revenue Debt · By end of FY26 · High confidence 4%
    Yes. I think our target is that we should be close to 4%. That is what our we think we can reasonably achieve by the end of FY '26.

    — Sharan Bansal

Capex

  • Capacity Expansion Capex (additional INR600 crores) Capex · Next 3 years · High confidence INR600 crores
    And now over the next 3 years, we expect to invest another INR600 crores. This is apart from the routine maintenance capex that goes on.

    — Sharan Bansal

Funding

  • Debt to Internal Accruals Ratio for Capex Funding · This year (FY26) · Medium confidence 60% Debt, 40% Internal Accruals
    So I would say that it will be -- last year also, the capex that was done was through a mix of both internal accruals and long- term loan... This year could be maybe 60% debt and 40% internal accruals.

    — Sharan Bansal

Market context

  • Polymer Segment Margins Profitability · Next year (FY27) · Medium confidence Double-digit

    From low single-digit today

    Probably not this year, but yes, next year would be a reasonable expectation.

    — Sharan Bansal

Risks & concerns

  • Availability of skilled manpower for project execution.

    high

    Critical shortage of execution manpower on the ground due to large order inflow, companies are adopting training methods.

    Management acknowledged

  • ROW (Right of Way) challenges in domestic transmission projects.

    medium

    ROW is generally in the developer's scope but can delay projects.

    Management acknowledged

  • Potential overcapacity in tower manufacturing.

    medium

    Management believes their differentiated engineering skills, design team, and backward integration provide cost advantages, making it difficult for less competitive players to get margins, but not for Skipper.

    Analyst acknowledged

  • Impact of US tariffs on exports.

    low

    US market is less than 1% of order book, tariffs are dynamic, company has opportunities in other markets and will adopt a wait-and-watch policy.

    Analyst downplayed

Areas of evasion (1)

  • specific Q1 domestic T&D order inflow breakup

Q&A highlights

3 direct
Impact of US tariffs on exports and major export geographies. Direct
So the -- I would say that the U.S. market makes up less than 1% of our order book. So it's not very significant for us. The impact of tariffs has to be seen because the situation is, I would believe, quite dynamic where the tariff numbers keep changing very fast... So honestly, we will have to wait for some clarity to emerge from this. However, net-net, the company has opportunities in several other markets apart from the U.S. also.

Clarifies the limited direct impact of US tariffs on Skipper's current business and highlights their diversified export strategy.

Asked by Abhijeet Singh

Potential overcapacity in tower manufacturing and industry dynamics for raw materials. Direct
See, again, because our capacity is differentiated 2, 3 reasons because of our strong engineering skills, our availability of a very, very big design engineering and testing team and also our backward integrated capacity, which gives us significant cost advantages over our peers. I would say that for a player who is not that cost competitive, yes, they would find it difficult.

Addresses a key sector-wide concern about increasing capacity and explains Skipper's competitive advantage through backward integration and engineering capabilities.

Asked by Arjun Agarwal

Slowdown in T&D project awards reported by other large players vs Skipper's strong order inflow. Direct
I would say that, no, in terms of order inflows, etcetera, because we are present in a lot of global markets also, so again, for us, when we look at our bidding pipeline, we look at all across the world... And if at all we see any slowdown, so far, we have not witnessed a slowdown in any domestic ordering.

Reassures investors about Skipper's order pipeline despite broader industry concerns, attributing resilience to global market diversification.

Asked by Navin Sahadeo

3 min read 7 chapters

Detailed narrative

Strong Q1 FY26 Performance Driven by Engineering and Polymer Segments

Skipper Limited reported a robust Q1 FY26, with net revenue growing 15% year-on-year to INR1,2539 million. This growth was primarily fueled by strong execution in the Engineering segment, which saw a 24% increase in revenue to INR1,248 million, and the Polymer segment, which grew 34% to INR1,272 million. The Infra segment, however, experienced a 39% decline, contributing INR1,019 million. Consolidated EBITDA rose 22% to INR1,272 million, with margins improving to 10.1% from 9.6% in the prior year, driven by operating leverage and higher quality T&D contracts.

Record Order Inflow and All-Time High Order Book

The company achieved a significant order inflow of over INR1,9774 million in Q1 FY26, marking a 158% increase compared to the previous year's first quarter. This strong performance propelled the order book to an all-time high of INR85,205 million, providing strong execution visibility. Management is confident in achieving a total order inflow of INR6,500-7,000 crores for the full FY26, supported by a deep tender pipeline of approximately INR300,000 million.

Ambitious Capacity Expansion and Export Growth Strategy

Skipper has fully installed and operationalized a new 75,000 million tons per annum (MTPA) capacity in Q1 FY26 and plans to commission another 75,000 MTPA by the end of the current financial year. This expansion is part of a bold vision to become the world's largest transmission tower manufacturer with 6 lakh MTPA capacity by FY28. The company aims to double its export order inflow from INR700-800 crores to INR1,500-1,600 crores in FY26, leveraging new subsidiaries in three international regions to deepen global market penetration.

Positive Macro Outlook and Strategic Market Positioning

Management expressed a highly positive macro outlook for the power transmission sector, citing government investments of INR9 lakh crores till 2032, with potential for up to INR15 lakh crores till 2035. Skipper is strategically positioned to capitalize on this growth, particularly with its qualification for high-voltage EPC projects (765 kV and 800 kV). The company is also expanding into the substation segment, which is expected to account for 50% of the total transmission sector investment.

Focus on Profitability and Operational Efficiency

Skipper is targeting a 50 basis point improvement in consolidated EBITDA margins for FY26, driven by better quality T&D contracts and operating leverage. The Engineering segment already achieved 11.3% EBITDA margins in Q1, within the desired 11-12% range. In the Polymer segment, despite current low single-digit margins, the company aims for double-digit margins by next year, supported by increased focus on the higher-margin plumbing segment and retail distribution network expansion.

Capex and Funding Strategy

The company plans to invest an additional INR600 crores over the next three years for capacity expansion, beyond the INR250 crores already allocated for FY26 (which includes INR40-50 crores for routine maintenance). This capex will be funded through a mix of internal accruals and term loans, with management indicating a potential split of 60% debt and 40% internal accruals for this year's funding. They also target to reduce interest expense as a percentage of revenue to approximately 4% by FY26 end.

Key Challenges: Manpower and ROW

While the demand outlook is strong, management identified the availability of skilled manpower for project execution as a critical challenge due to the large inflow of orders. Right-of-Way (ROW) issues, typically the developer's responsibility, also pose a medium-severity risk for project delays. Skipper is addressing the manpower shortage through internal recruitment and training initiatives.

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