Detailed Narrative
Strong Q2 FY26 Performance and H1 Growth Momentum
Skipper reported a robust Q2 FY26, achieving INR 1,262 crores in revenue, a 14% year-on-year increase. EBITDA grew by 16% year-on-year to INR 131 crores, with margins expanding to 10.4%. PAT before exceptional item📎s rose 32% year-on-year to INR 45 crores. For the first half of FY26, revenue stood at INR 2,516 crores, also up 14% year-on-year, with standalone EBITDA margins improving to 10.3% from 9.9% last year.
Record Order Book and Robust Bidding Pipeline
The company's order book reached an all-time high of INR 8,820 crores as of September '25, comprising 89% domestic and 11% export exposure. During Q2 FY26, Skipper secured INR 1,243 crores of new orders, contributing to H1 FY26 order inflows of INR 3,221 crores, a 33% year-on-year growth. The bidding pipeline remains strong at over INR 30,000 crores, providing significant visibility for future growth.
Strategic Capacity Expansion and Operational Enhancements
Skipper's new 75,000 tonnes capacity is now fully operational, and plans for an additional 75,000 tonnes expansion have been initiated, aiming for a total capacity of 600,000 metric tons per year by FY28 end. The company also inaugurated its second test bed facility and signed an MoU with IIT Kharagpur for R&D, alongside progressing on SAP S/4 HANA RISE implementation, enhancing operational efficiency and global competitiveness.
Ambitious Export Diversification and Market Entry
Management expressed an aspiration for a long-term 50-50 domestic-export order mix, expecting to achieve this within 2-3 years. To support this, Skipper has established three new foreign marketing subsidiaries in the U.S., UAE, and Brazil. The company is actively pursuing growth opportunities in developed markets like North America and Europe, in addition to existing strongholds in the Middle East, Africa, and Latin America.
Polymer Business Outlook and Targets
The polymer business recorded INR 242 crores in revenue for H1 FY26, up from INR 199 crores in H1 last year. Management projects FY26 revenue for this division to be around INR 600 crores. The long-term target is to grow the polymer business into an INR 1,000 crore brand within the next couple of years, aiming for double-digit EBITDA margins, as commodity resin prices are believed to have bottomed out.
Financial Health and Margin Improvement Trajectory
Skipper maintains a comfortable financial position with a stable debt-equity ratio of 0.61 and a total loan of INR 1,268 crores as of September '25. The company has successfully reduced its finance cost as a percentage of sales to 4.1-4.2% in H1 FY26, down from 4.7% last year, with a target to bring it closer to 4% for the full year. Management also aspires for overall EBITDA margins to move from the current 10-10.5% level to 12% in the longer term, driven by better quality contracts and HVDC projects.